New Opportunities for Landowners in the Forest Carbon Market

Woodland owners are rethinking the way their lands are valued and managed, and they’re evaluating ways to diversify their revenue sources while supporting forest stewardship goals. As a result, land ownership and management regimes are evolving through advancements in technology and the emergence of non-timber-based revenue, including forest carbon sequestration programs. Voluntary forest-based carbon crediting systems have advanced due to an increased demand for corporate net-zero commitments and targets. Rising carbon credit demand in both the voluntary and compliance markets has spawned the rise of numerous carbon project development companies and brought forest carbon offset revenue opportunities to the table for forestland owners. Technology-driven advancements in measurement, reporting, and verification continue to boost corporate and consumer interest in the voluntary carbon credit market system. With this in mind, AFM has engaged with several forest carbon offset companies to help landowners gain access to the carbon credit marketplace. Forestland owners of nearly all sizes can now participate in and profit from this exciting new alternative to the traditional forest products market while simultaneously preserving the benefits of a sustainably managed forest. As such, AFM offers participation assistance and guidance in any of the three companies we work with, and each program differs in its requirements and parameters for participation.

The Family Forest Carbon Program (FFCP) (administered by the American Forest Foundation [AFF]) offers opportunities to non-industrial private forest (NIPF) landowners with as few as 30 acres. Currently, FFCP operates in 19 states throughout the eastern and midwestern US, with hopes of expanding its footprint into the greater Midwest region. FFCP’s goal is to create additional carbon storage on the landscape through their Verra VCS-approved methodology. Several program tracks are available to landowners based on geographic location, goals, and past management practices. The Improved Forest Management (IFM) practice enrolls landowners who are able to conduct a harvest and establishes voluntary guidelines to follow. Similarly, the Fields and Forests (F&F) program enrolls landowners who have fallow or marginal crop or pasture lands, and AFF provides landowners with the means to reforest their properties. Both programs directly compensate landowners for their participation, and they enter a 20 and 30-year commitment, respectively. Program participants receive continued support through FFCP’s Community Support Team, and their AFM forester continues to be part of the process by providing high-quality forest management. FFCP refers AFM clients who qualify for the programs, and AFM conducts verification and pre-enrollment feasibility assessments on client properties. Chrissy Shaw, Senior Forestry Manager at FFCP, said, “Working with AFM in the Family Forest Carbon Program has been nothing short of exceptional. AFM’s foresters have displayed a level of professionalism, commitment, and compassion that is unmatched in our industry. A new and growing program like the Family Forest Carbon Program can be challenging for foresters to maintain the knowledge and dedication necessary to be experts. FFCP is proud to work alongside AFM.”

LandYield provides private landowners with 40 to 5,000 forested acres an opportunity to access the voluntary carbon market without costly inventories. Using Finite Carbon’s cutting-edge CORE carbon platform backed by ACR’s small landowner-oriented IFM methodology, LandYield is able to sign landowners up within weeks and begin payments of $25-50 per acre per year the following quarter. The program is available in 26 states, from Maine to Florida, and at no cost to landowners. Plantation and natural forest types are eligible to participate in the program, provided the majority of timber volume is of merchantable size, and landowners are willing to defer commercial harvests for 20 years. Landowners can earn significant revenue while managing to improve forest conditions and maintain intact ecosystems for the future. LandYield provides landowners the important flexibility to enroll only the forest stands that fit well with program requirements. That means landowners do not have to enroll their entire forest holdings to participate. Director of LandYield Josh Fain shared, “AFM is proving a leader in helping landowners navigate new opportunities and the evolving nature of the forest industry and management. We are excited to work with them as they expand their carbon market offerings to their particularly savvy forest clients.”

Finally, Greenline is excited about blending carbon and broader natural capital solutions for operational forestry. Their work is designed to support TIMOs and large-scale forest ownerships with a couple thousand forested acres to 10,000+ acres. AFM’s partnership with Greenline provides another tool in the toolbox. The partnership is structured like this: AFM is essential to land management and oversees all forestry activities; Greenline offers landowners an opportunity to monetize their forests through data-driven science and capital markets. Greenline’s carbon data studies, feasibility studies, and growth and yield models allow land and forest managers to create harvest plans that support forest markets and forest management strategies. Once landowners sign on to a project, the length of the program is 40 years. However, landowners receive revenue in their second year, and annual payments are made when the project goes into full development. Josh Yearout, Vice President of Business Development at Greenline, said, “We view AFM as the domain expert in forestry consulting throughout the US. The blend of landowners in their portfolio and the breadth and depth of their client base is exceptionally attractive.”

Regardless of a landowner’s scale of operations, there are various carbon project opportunities available to explore that may align with their long-term objectives. By implementing carbon sequestering practices under a carbon program, these practices can diversify income streams while maintaining productive forestlands and practicing good environmental stewardship for generations to come.