Below are two excerpts from and article I ran across in the Southeast Farm Press. This is great news for timberland owners, and valuable information for those considering buying timber land in Alabama or anywhere in the Southeast. According to the article, Loblolly Pine is great for carbon sequestration and beats other species tested until it is 30 years old. Most pine forest stands do not reach 30 years old before its time to harvest. I think this creates a great opportunity for forestland owners to add one more stream of income from forest ownership and management. Timber harvest sales, hunting lease rents, carbon credits. It will take a little while for the market to develop, but it is well on its way. Once the market fully develops, I think the world’s major carbon emitters will have a ferocious appetite for these credits. At some point, I see there being laws put into place that will require major carbon emitters to purchase offsets in an attempt to control the emissions. Whatever you feel about global warming and our ability to control it, this will be an income-producing opportunity for savvy forest owners.
If you would like to read more, there is a link after the two excerpts below.
“The U.S. appetite for carbon trading is strong CCX is now trading 3,000 to 5,000 contracts per day, with 20 percent of the largest carbon dioxide-emitting utilities in the U.S. participating; 11 percent of the Fortune 500 companies; and 17 percent of the Dow Jones Industrials companies.”
“Robert Grala, assistant professor of forest economics, Forestry Department, Mississippi State University, whose research interests focus on opportunities for strengthening competitiveness of U.S. forest sector, says carbon markets are getting increased attention because of new income opportunities for landowners in addition to the income they can derive from timber.”