Carbon contracts have been a popular topic of conversation for farmers and ranchers around the country recently. Essentially, companies interested in lowering the impact of their carbon emissions pay landowners to take steps to store more carbon in the land.
As with any agreement, several legal and economic issues arise and should be carefully considered before entering into a carbon contract. A critical consideration is that landowners should never rely on verbal representations made by anyone related to a contract; assume only the written contractual terms will be enforceable. This is new territory, and many unknowns still exist about the carbon market and these carbon agreements.