+ What are the costs involved in running a soil carbon project?

The key upfront cost is for soil sampling. See below for a table of indicative cost for baseline sampling based on project areas. These are the only costs that are passed on to the farmer related to the administration of the soil carbon project. Under AgriProve’s success model, we only get paid if the project successfully generates carbon credits.

This Chart provides a rough guide to soil carbon project costs.

+ How are carbon credits sold?

Farmers have flexibility in choosing how their carbon credits are sold. The sales contract with AgriProve has this flexibility built in by allowing for ACCUs to be sold either at a set price, on the spot market, or held for future sale. A combination of these options may be chosen, resulting in a blended price per credit dependent on the percentage chosen for each option.

+ What are the financial risks associated with a soil carbon project?

The main risk in pursuing a soil carbon project is the cost of soil sampling. In the worst-case scenario, you would sample your soils to find no increase in soil organic carbon and therefore no carbon credits. Although you would be out of pocket for the soil sampling costs, there would be no obligation to continue with the soil carbon project at this time. It is also necessary to highlight that a soil carbon project involves keeping the land in active agricultural use during the 25 year span of a soil carbon project and farmers selecting project mechanisms to build soil carbon that align with their commercial on farm objectives.

+ Does GST apply to the credits?

No, carbon credits are GST free, however, standard additional income taxes will apply.