Case Study: Two Landowners' Experiences with Carbon Payment Programs
Introduction
The carbon market is an emerging and evolving sector, which can make it challenging for family forest owners to consider enrolling their land in these programs. This article shares the real experiences of two landowners as they contemplate joining a carbon program. By illustrating their journeys, we aim to provide strategies that can empower other landowners to participate in this area. The names of the landowners and other identifying details have been changed to protect the parties' identities and privacy.
Case Study 1: Eli
Eli is a relatively new landowner, having purchased her property in 2023. She acquired approximately 123 acres of land in partnership with a young couple, Lily and Walker. Eli covers the cost of the land and leases a plot to Lily and Walker for farming. The land is primarily wooded, but about 10 to 15 acres is flat and suitable for agriculture. Lily and Walker grow vegetables on this flat land and have recently planted a fruit orchard. Another portion of the property is utilized as a hayfield. This past year, Eli purchased a neighboring property, increasing her total landholding to about 255 acres across two farms.
Eli's purchase of the land has been a part of her lifelong dream. Her management goals focus on maintaining the property's health, cultivating nutritious foods, and fostering community connections. While Eli relies on her land for some alternative income, this is not her primary objective. Lily and Walker pay for their lease with a monthly delivery of vegetables. Eli allows her neighbors to hunt in her woods free of charge in exchange for their assistance in maintaining certain hiking trails and mowing hay on the property. She is not enrolled in a preferential tax program for forests, as she benefits from reduced tax rates as a farm property. Eli's management philosophy centers around building community based on mutual respect and responsible land stewardship. You can learn more about Eli's story at About the Farm.Â
Eli is committed to maintaining healthy farmland and protecting the health of the forest. She has received grant funding to develop a forest management plan; however, despite applying in 2023, she did not receive any funding from the EQIP grant. Eli is primarily looking for income streams to assist with invasive species management.Â
Eli began considering enrolling her land in a carbon program after receiving a magazine from a neighbor. She explored contracts from two programs: the Family Forest Carbon Program and Forest Carbon Works. Ultimately, her decision was influenced by the Family Forest Carbon Program's flexibility, as it allowed her to enroll one of her two farm properties, while Forest Carbon Works required both farms to be enrolled.Â
Eli chose a 20-year contract with the Family Forest Carbon Program, which ensures her children will have some autonomy over the land when they inherit it in the future. The program includes 65 acres of her forestland, as the remaining acres were ineligible due to invasive species. Her contract permits minimal harvesting (up to 5 cords) for firewood and provides a substantial upfront payment to support her management goals. Over the 20 years, Eli will receive a total of $17,915 for her 65 enrolled acres, along with 20% of the payment upfront and an additional $700 for developing the forest management plan.
Eli does not take money from her agreements with farmers or hunters who use her land, yet she greatly enjoys the vegetables grown there and appreciates the assistance she receives in maintaining the property. Her story is a prime example of how to access multiple streams of income, and possibly barter, while participating in a carbon program. She is able to lease her land for hunting, grow food crops, and receive help with mowing hay and maintaining the trails, all while remaining compliant with her carbon contract. Additionally, Eli can apply for programs like the EQIP grant and hopes to receive funding this year. Her experience illustrates how carbon offsets can enhance income and support forest management goals.
Case Study 2: Susan
Susan owns just over 200 acres of land on the border of West Virginia and Ohio. This land has been in her family since the 1820's. Susan has worked hard over the past few years to acquire the land under sole ownership and to restore the land from previous degradation. Susan is an absentee landowner and does not live directly on her property, so she relies on the help of consulting foresters to maintain her forests. Despite living far away from the land, she is deeply connected to the property and dedicated to preserving it.Â
Susan's primary management goals are to restore forest health and control for invasive species. She currently enrolls in West Virginia's preferential tax program, which requires her to have a forest management plan. Susan has also participated in multiple grant programs, including one with the NRCS and the Conservation Resource Program (CRP) with the USDA. The other primary stream of income that Susan gets from her property is from leasing out the land for hunting.Â
Back in 2022, Susan began considering enrolling in a carbon program. As a good land steward, she was interested in what the program stood for and felt that it could be a good way to provide additional financial support. She received contract proposals from the American Forest Foundation, Forest Carbon Works, and the Family Forest Carbon Program. The individual contracts varied widely in terms of length, with some contracts lasting about 45 years and others reaching up to 100 years. The compensation for her land was expected to be around $20,000 across the agreement period.Â
As Susan explored carbon contracts, she became concerned about the perpetuity requirements of the agreements. She did not want to pass on this responsibility to her children in the future. She was also concerned about high penalties for withdrawing or violating the agreements and felt like management practices were significantly restricted. Ultimately, Susan decided the carbon programs available to her were the correct fit for her land management goals and objectives. Susan remains an active land steward and she plans to do tree thinning to improve her stand health in the next year.Â
Summary
These case studies highlight several important lessons for family forest owners considering participation in carbon payment programs. First, carbon markets are complex and highly variable, and programs differ significantly in contract length, flexibility, eligibility requirements, and management restrictions. This makes it essential for landowners to carefully review multiple options and align contracts with their long-term goals and family circumstances. Second, the stories show that landowner motivations matter: Eli viewed carbon payments as one of several complementary income streams to support stewardship and community-based land use, while Susan prioritized long-term autonomy, restoration, and avoiding obligations that could burden future generations.
Another key lesson relates to ideas around flexibility and control. Eli's decision to enroll only part of her land and choose a shorter, 20-year contract allowed her to maintain management flexibility and inheritance options, making the program a good fit for her values. In contrast, Susan's concerns about lengthy or perpetual contracts, strict management limitations, and potential penalties led her to decide against enrollment, illustrating that carbon programs are not suitable for every landowner or property. Finally, both cases demonstrate that carbon payments should be viewed as a tool that may supplement other income sources or conservation funding, but must be weighed carefully against stewardship goals, legal commitments, and long-term land legacy considerations.
If you have any questions or are interested in collaborating with FOCCE, please reach out to Melissa Kreye at mxk1244@psu.edu
Article Information Sources
Interviews for this article were conducted in Fall 2021 and 2020.
