New Podcast Discusses Carbon Payments for Forest Landowners

Meet the Experts

Anthony Pappas is a certified forester and owner of Heritage and Habitat and Forestry, a consulting firm located in the Appalachian Region of the US. Gabriel Reis is a market analyst at FastMarkets, tracking forest carbon pricing and trends across global and US markets. This discussion was hosted by Melissa Kreye, Associate Professor and Director of the Forest Owner Carbon and Climate Education Program.

Listen to the podcast here on the FOCCE Website.

Editor's Note: The Improved Forest Management (IFM) projects described below often involve managing mature forests to increase carbon storage by extending harvest rotations and implementing stand improvements.

Q: Who are the professionals operating carbon markets in the Central Appalachia region? 

Anthony: 

• I have worked with about a dozen carbon offset project developers in the Appalachian region. Each developer and project has its own contract lengths and eligibility criteria, as well as different methods for measuring and quantifying carbon. I maintain a  catalog of project requirements for my clients or any forest owners considering a carbon project. 
• Most projects I work on involve IFM protocols, but some also include afforestation/reforestation or avoided conversion projects. Many of the properties I manage are under 10,000 acres. However, if you have more than that, there are many more carbon opportunities available for larger tracts.
• Most developers sell credits in the voluntary market, where companies voluntarily purchase carbon credits to offset their emissions. A project developer initiates the project and usually hires consulting foresters like us. The project developer then quantifies the amount of carbon credits produced. These credits are then cataloged in a designated registry, and buyers typically purchase them from that registry.

Q: How would Landowners go about investigating payments for forest carbon?

Anthony:

• Landowners can contact these programs directly or ask us, a forestry consultant, for help finding the right opportunities. Keep in mind that exploring options may take some time.
• To sign a contract for an IFM project, a forest inventory by a certified forester is usually required. Most IFM contracts last at least 20 years, often extending to 40 years or longer.
• It's important to understand all the details of the agreement, not just the payment terms. Working with a forester can help, as we have experience with various programs and can identify which might best suit your needs.
• If you're researching on your own, be ready to spend time learning through resources like YouTube or documents. Contracts can be complex, so it's also a good idea to have a lawyer review them and clarify your goals. 

Q: Are IFM projects common, and are they something landowners are interested in? 

Gabriel:

• There are several reasons why IFM projects are common in the US. One key reason is that many forests are already mature, making it cheaper to initiate IFM projects than to undertake new afforestation or reforestation, which require more investment.
• In the Southern US, many landowners with pine plantations have struggled financially due to the closure of pulp mills, which has reduced their income. To address this, they are considering IFM projects that use forest carbon as a new revenue stream. 
• The growing access to carbon markets, where landowners can sell carbon credits, has also increased interest in IFM and carbon offsets.

Q: What is happening on the Voluntary Market where most carbon credits from family forest lands are being traded?

Gabriel:

• Forest projects and nature-based offsets are still the preferred options in carbon offset markets. Many buyers, especially large companies, favor these types of credits due to their perceived quality and environmental benefits.
• Notable companies like Microsoft and Apple are also making direct investments in large-scale carbon initiatives worldwide to further support these efforts. This trend highlights the increasing commitment of major corporations to sustainability and reducing their carbon footprints.

Q: Is it important to know the difference between an avoidance project and a removal project?

Gabriel: 

• Avoidance-Based Credits are given for actions that prevent emissions that would have occurred if the land had been cleared. Essentially, they represent the carbon emissions that are avoided by preserving forests.
• Removal-Based Credits are awarded for actively removing carbon dioxide from the atmosphere, such as through carbon sequestration in trees. This involves planting trees or maintaining forest areas that absorb carbon.
• Removal-based credits typically command higher prices because they are perceived to provide more permanent and higher-quality carbon reductions. As of November 2025, removal-based credits (specifically IFM credits) are trading at approximately $17 per acre in the US, while avoidance-based credits are priced around $11 per acre. 

Q: What's the outlook for forest carbon prices in the future?

Gabriel: 

• Currently, we are observing spot market prices, which likely represent the lower bound for IFM credit pricing. Notably, major companies such as Weyerhaeuser sold their credits for $29 each in 2023, and prices have since exceeded that.
• Buyers who are prepared to take a more active role in the development and management of forest carbon projects are often willing to pay significantly higher prices in exchange for that involvement. This can be seen as a way to mitigate the risks associated with non-compliance and project deviations. Long-term contracts also play a crucial role in the pricing dynamics of carbon markets. 
• The long-term outlook is very optimistic, as the US has issued approximately one-third of the world's total forest carbon credits, despite a low enrollment rate of just under 1.5% of its national forest cover. 
• The potential supply of credits in the US could increase significantly, especially as new legal constraints on domestic credit trading emerge in other key global regions.

Q: Given the many actors involved in developing a project and selling credits, what can landowners expect for payment?

Anthony:

• While developers have their own commissions and costs, every forest is unique, so some properties may generate more revenue than others, even when they are part of the same project type.
• In general, payments for forest management projects can range from $10 to $50 per wooded acre per year within the IFM space. For reforestation projects that include at least 20 acres of unforested land, the payment can be around $40 per acre per year. Typically, longer contracts can yield payments in the $40-$50 range, whereas shorter projects usually earn between $10 and $13 per acre. 
• Some developers may negotiate a percentage of the carbon credit sale price, while others prefer a flat rate. Additionally, some projects involve periodic remeasurement of the property to recalculate the carbon stored, while others use various formulas and growth models for estimates and use a flat rate. 
• For some landowners, the financial return may not be substantial, but in many instances, a landowner engaged in a carbon project can also conduct a timber sale and benefit from state tax reductions and federal cost-sharing programs, such as the Environmental Quality Incentives Program (EQIP), provided they structure the transactions effectively.
• Some programs also permit partial enrollments. For example, if a landowner has 100 acres, they might choose to exclude 30 acres for timber harvesting and 5 acres for building a cabin, while enrolling the remaining acreage in a carbon project. However, some projects require the entire property to be enrolled.
• In summary, when discussing what landowners receive per acre, it's essential to recognize the considerable variability. This variability largely depends on the landowner's goals, interests, willingness to commit to longer-term contracts, and the current condition of their forest. 

Q: Any closing remarks?

Gabriel: 

I think that it is really important for landowners and really anybody interested in carbon markets to understand that when it comes to forests, carbon projects don't necessarily equate to inoperability, which is a really widespread misconception out there.

Anthony: 

Whether you use Heritage Habitat and Forestry or a different consulting forester, make sure whoever you're working with has experience with forest carbon credits.

To learn more about carbon management and payments, please visit the FOCCE website or contact Sarah Widderich at srw5841@psu.edu