Webinar: Everything you need to know about selling your carbon credits
16 Jun 2269 min 49 sec

You’ve likely been hearing about carbon revenue opportunities for farmers for a couple years now. But what’s the deal and how do you go about making a carbon deal?  What changes to your farming practices are required and who monitors your practices?  Most importantly, how much money are we talking about — because let’s face it, carbon credit deals are still anything but mainstream.  We know you have questions, and frankly so do we at XtremeAg. Which is why we devoted our June webinar specifically to carbon markets.  Watch and/or listen as we discuss everything you need to know about selling your carbon credits with Kelly Garrett, Temple Rhodes, Matt Miles and the folks at Truterra.

00:01 All right, welcome folks to the June webinar presented here by extreme AG. I'm your host Damien Mason. I also and the host and producer along 00:10 with my friend will ostet of the cutting the curve podcast. If you are not listening to the stuff, we're putting out there. 00:16 You're really missing out because we are cranking out great stuff with our panel and also the people that are on today's 00:22 panel meaning the extreme AG Founders and our Affiliates, you know, we got Farmers from a ranging geography around the United States of 00:28 America that are doing some really advanced stuff your yield setting record setting farmers and they also do product trials. 00:34 So make sure you are checking out all the cool stuff extreme AG dot Farm. If you have a question that you want to ask or 00:40 be involved in today's webinar go to the bottom of your screen move your cursor around you'll see raise your hand and you also see a place where you can type in your question by clicking on the little sound 00:49 bubbles. It says Q&A you can type in your question and I will make sure that your question is addressed. Our panel is 00:55 Mariah Murphy. She is with a company called true Tara true Tara as affiliate or should say maybe 01:01 Of Land O'Lakes. Temple roads is an affiliate here with extreme AG. We love Temple and I said in the previous podcast recording with him. He's kind of 01:10 like Jagermeister. You won't like him at first he grows on you you'll vomit and he'll make you sick 01:16 and you'll actually not enjoy the first couple of experiences but eventually is to where you can stomach it. That's Temple roads 01:22 Matt miles of McGee Arkansas. One of my favorite fact, he is my favorite. I was really excited. I was in McGee Arkansas will and I shot a boatload of 01:31 content. So be sure to check that out with Lane and Robbo and the other characters of McGee Arkansas miles Farms Willow 01:37 stat is our controller our producer and the brains. He's the wizard behind the curtain here at extreme Ag and then Kelly Garrett. Kelly Garrett is one of our panelists. And 01:46 in fact, we're gonna hear from him first the reason right here with Kelly Garrett first because he's all about the carbon Kelly and I met because December 01:55 of 2020. I'm reading the Wall Street Journal and there's a picture of an Iowa farmer who is 02:01 Paid money to sell carbon. I've been hearing about this whole carbon thing for years in Acts. I used to get postcards from a company. That sounds like it's named after 02:10 a color blue. Anyway, I still don't know what that company does but you just get their postcards tell me they could give me money for carbon. 02:16 I never understood it. I read this article about Kelly Garrett and Iowa farmer who's doing no-till and he's doing various other practices to sequester carbon 02:25 and a company called Spotify or Shopify something with a Phi and it is giving him money for this and I'm like, I gotta track this guy down. I tracked him down introduce myself had 02:34 him on my business of Eric culture podcast next thing, you know, he brings me into the fold here at extreme egg Kelly Garrett. Why were you written up in a Wall Street Journal first 02:44 off? From my research at that point there was too farmers in the United States of America somebody on the east coast and you 02:51 that had been paid for carbon now, it's getting to be more of a proliferated thing. Tell me the history and how this whole 02:57 thing started with you getting money for carbon. We were approached by. A carbon Market to be an early adopter into 03:06 the carbon Market space as a no-till farmer. I very much believe that carbon is the most important element. 03:17 That goes into production of corn beans wheat, whatever crop you want. You're never going to hear that from an AG retailer because 03:25 they can't sell you carbon. So the way that we Farm the things that I believe the principles, I believe very much aligned 03:33 with the carbon markets face because of that. it progressed and we became the first if you know number one, if not, 03:43 the number two Farmer in the United States to sell our carbon credits in the market space and it was Shopify that purchased those first credits. 03:52 Yeah, so you were written up and it was kind of let's face it. You know, it's almost like a year and a half ago. It was still kind of a new thing. It still is the wild west. There's 04:01 a lot of people that don't understand it which is why we're having this webinar and why two weeks ago, we released a podcast on this very subject. 04:07 What did you approached? But how they find you why they find you it didn't just happen out of thin air, or they just said let's go find a guy in Iowa that no till Farms. Sorry take me through 04:19 that. They were looking for an early adopter into this carbon Market space and extreme egg. Came up on their on their Google search basically 04:29 and they they were looking for Progressive farmer that would go forward with them and and find out what would happen and it's it's 04:38 been a great. It's been a great journey my family my farm my operation. I can't say enough about how it's progressed us. It's been terrific. 04:48 All right dollars and cents. We're an open book here. We tell people how we can help them. Shorten our learning curve on the you know, cutting the curve podcast. We're all 04:57 so what we want our followers on our listeners and the people that are on this webinar right now to make carbon a secondary Revenue 05:03 Source you did that tell us about the money because some people like I ain't gonna mess around over 20 bucks. You're making a lot more than 20 dollars off the carbon, right? 05:12 We Farm about 7,000 acres and in the year 2020 we cashed in about 491,000 worth 05:21 of carbon credits is it's a pretty nice deal. Okay, 490,000 came in in the year 2020 on your carbon thing. Is that a one-time thing or 05:31 is it ongoing? We sold what you would call Vintage credits which would go back to 2016. So it 05:39 was a few years accumulation. But no, it's not a one-time thing. You know, we're we're now involved or true Tara carbon Market. 05:48 I'm very happy to be part of and we are now talking about credits going forward. We're talking about building more credits and no it absolutely is 05:57 not a one-time thing. I I intend to to sell more credits and cash in again. Got it, by the way, we'll just posted the link to 06:05 the podcast. So if you don't get enough in our discussion today, you can go ahead and just grab that click on the link and then it'll take you to the podcast that released 06:14 a couple of weeks ago about this subject and that was recorded with Mariah Mariah Murphy is with true Tara. What's 06:20 true Tara? And what do you do Mariah? I want to make money on carbon. I've got Farm ground help me out here. Sure. So true 06:29 here is actually the fourth business unit of Land O'Lakes. So Land O'Lakes is that 100 year old Cooperative? We work 06:35 with all of our Orlando Lakes agreed Taylor so our Cooperative retailers and then we are also working with folks like Kelly and those individuals that are on this call. And 06:44 what we are really trying to do is we're trying to make our great healers and our Farmers successful. We're trying to 06:50 provide them opportunities and new revenue streams and return on in their investment through new creative ways. Right in carbon is one of 06:59 those we are much larger than just carbon. Are also focused in other sustainability efforts things around water quality credits as we start getting into more 07:08 of this nitrogen reduction credits, maybe even low carbon intensity grain, you know, we are we are much more than carbon that is what we were started to do but carbon 07:17 has really become that buzzword. All right. I'm a farm owner. I don't operate it. I rent out my farm ground 07:26 to a large-scale Dairy operation. Can I get carbon credits this the operator have to get carbon credits? How does this how do I initiate this? Yeah, great 07:35 question. So you as the we are going to contract with the actual land or with the farmer. Okay. And so the farmers the one 07:44 that is actually making these practice changes and so the contract is actually with the Farmer. They do actually have to have some sort of attestation basically letting 07:53 the landowner know that they are going to be selling the credits on their land and so there is a little bit of that Nuance there 08:02 to where you have to be upfront and honest with your landlord and let them know that you're participating but the money today is going 08:08 to be actual farmer. Okay. All right. So we're all the other folks on this call right now. We're gonna be coming back to you routinely, but one thing I need to know I don't. 08:20 Buy stuff from Land O'Lakes. I don't buy your Winfield chemistry and I don't buy any cattle feed from within the 08:29 legs brand stuff. So I'm not allowed to be a customer or can I get carbon credits through you if I'm not a customer? 08:36 Yeah, definitely. Um, so if you're not working with one of our Land O'Lakes aligned retailers or someone that is in the true Care Network, you can work through our 08:45 website so you can go to True Terra ad.com. We are more than happy to help find a retailer that maybe you would want to work with or you can work with us and we will help you through that process. So 08:55 absolutely you're still eligible. All right, and then from a dollars and sense standpoint Kelly gave me a number 490,000. That's a lot change. But how much 09:04 am I gonna get from True Tara? I if I do this thing and I sign it up. Are you how much you gonna give me 490,000 Well, you know as we talked on our podcast, you know, 09:14 Kelly is sitting in Western, Iowa where it's like a gold mine of carbon. And so what Kelly is sequestering is 09:20 probably more than the average farmer. I'll be really honest with you. It varies greatly depending on where you're located. 09:26 There's a lot of environmental factors soil is a big contributor to what you're actually going to sequester. We actually pay up to $25 a time. So 09:35 meaning it's if you have made a practice change within the last three years you would be eligible for up to $25 a ton. We will take soil samples 09:44 25 dollars a ton. Here's what I know 56 pounds and a bushel of corn sixty pounds on a bushel of wheat. I don't have any idea 09:53 what a ton of carbon looks like feels like I don't have a clue a ton of car. Is there a ton of carbon in my office right now is yeah. What's what's 10:02 a ton of carbon look like feel like what's that mean? Yeah, so we are paying on the metric. 10:07 Time so it is the amount of time the additional carbon stored. Okay. So as your plants are 10:13 breaking down and that carbon seating back into the soil. We are going to be taking two very specific soil samples. So It Bolts into 10:19 both density test and a soil organic carbon test. We will combine that with the 34 data points that we're collecting. We will send that off it'll go through 10:28 our modeling system and then we will come back with what we call quantification and that is going to be basically your final number 10:34 or what you have sequestered. Okay, so it's not set arbitrarily is actually some science to this and I say, okay where you 10:43 are. So if I'm in Western Kansas where I only get nine inches of rain a year, I'm probably sequestering less carbon than I am 10:49 in Northeastern Indiana where I get 40 inches of rain and I can grow more more stuff right definitely and 10:55 a lot of it, you know as we talk about as we talk about carbon in general. It's about having a living root and in your soil at all times, right? And so that is a really key piece 11:04 to it as well. You're sitting in if you're sitting in Western. It and you do a lot of fallow. Unfortunately that 11:10 is going to that is going to affect how much carbon you're actually sequestering. All right, we're gonna go now speaking of 11:17 that exact issue Matt miles McGee Arkansas is in the Southeastern part of the state of Arkansas the Delta as it's known very Sandy soils. He irrigates there 11:26 are some practical reasons why he can't irrigate and before we hear from that there's one thing I want to do. I want to reiterate this in front of everybody knows 11:35 this. Shopify Dave killing your 491,000 in your 2020 you'd think at keeping pretty flush with cash six months ago. He took money from Matt 11:46 miles for beef and he still has not sent the beef to McGee Arkansas. When you think that a guy gets 491,000 wouldn't need to pocket poor Matt 11:55 miles cash or at least he'd be good about it actually send the beef to Matt. I'm sorry. You know what? I'm listening to 12:01 Cheeseburger because Kelly has a safety the beef yet. Let me tell you I live just like 30 minutes from Kelly and I have never received me. 12:07 So I mean, how do you think you're gonna get something all the way in Arkansas? So it's just you pay 12:13 every pay for it. No, no, maybe. What I'm missing here. All right, Matt miles. There's some practical reasons why you can't be as adored by 12:26 the carbon people because the carbon people Mariah just said it a Living Root in the soil at all times is really the goal because when something's living and growing it, 12:36 you know through the process called photosynthesis, it takes carbon out of the atmosphere. You can't do that and you also don't do cover crops and you 12:45 got some other things talk to me about that. Well, we do some cover crops but we get a little bit penalized because 12:51 we're for Furrow irrigating. So we have to have a clean Furrow to go through to you get our crop. So we're not what you call a hundred 13:01 percent no to you we have we're called minimal deal. So, you know, and and honestly, I think there's a you know, there's a rule 13:10 somewhere in the cloud or whatever that one one trip of tillage is still considered. Maybe not no deal with pretty 13:19 So we do one trip a lot and we just you know with the carbon credit deal the way it's set up right now one size don't fit all so you 13:28 got Kelly out there that has a hundred percent no-till or some of the other guys and then we have to we have 13:34 to actually clean our furrows out to Furrow irrigate. So we get a little bit penalized for that. We're in a carbon credit beta program right now with a company and you 13:43 know, we're doing okay with it, but there's certain rules, you know, that that apply 13:49 to the whole piece of power that really don't fit us. Tell me about the program you are in because there's that's the thing. It's not like again. I can 13:59 go if I grow a bushel of corn. I can price it online. I I know every elevator in the country's Gonna Take It. 14:06 It's pretty cut and drive. We understand selling a bushel corn selling carbon. There's all these different companies all these different programs. It Frank is a bit confusing. You're not 14:15 doing it through true Terra and you're also not doing it based on your cover crop. So what's the program that you're in and what's it look like feel like what's it pay? How's it pay? Who's your 14:24 payer all that? Well, I'm in a program right now is a beta program. So we were actually selected because we don't fit the normal mode. 14:32 You know of the of the carbon credit like Kelly does so it's just a you know, we're getting a we're getting a payment on we're doing like 2000 Acres 14:41 out 11,000. So it's not like a you know, we're getting 50 60 thousand dollars to be in this beta program paid up 14:50 front, but it's just to see if the guys in the delta or infer irrigated areas can you know can can can be in 14:59 this program to be honest we Got it. Who's the pay who's worth the money come from? 15:05 Uh, it's coming from Rabobank. Okay. So is it is the bank is the bank essentially doing this with the 15:14 idea that they're going to become a carbon broker. Well, no, you know Rambo Banks where we do our financing and they are the most one of the most Innovative 15:22 banking farmer banking agriculture banking facilities or whatever. You want to call it out there. So, you know, they're always 15:32 on the front edge everything is going on which job problem for that for sure and they you know, I'm not the only one in 15:38 this I'm the only one in the Delta but there's people around the United States in this and they're trying to figure out you know, 15:44 what point were they you know, where they wait lines up. Okay. So do you think that rob a bank is getting payment my 15:53 friends since Kelly is money came from Shopify. Rabobank isn't just doing this out of their own account, or maybe they are with the idea that they're going to pay you then they'll mark it 16:02 up and sell it. Do you think that's what's happening? They are actually just trying to figure out because they are Innovative and they 16:08 want to be on the front lines of all the new stuff that's going on. They're actually probably losing a 16:14 little money right now to try to figure out where they need to be. You know, they're probably losing money with me. They might not be with a guy in Kansas or or Nebraska 16:23 our whatever but you know in general they're trying to figure out where they need to be in a car remarket. They're so Innovative in helping the farmer and you 16:32 know, making a farmer better that you know, they're just trying to figure out where they're at in this thing. Okay. So you're in this is the first year. 16:41 Yep. Okay, so we're gonna go to Temple. But before I do that Mariah, are you familiar with the program that Matt is 16:50 talking about? I have heard of it. Yes. I'm not I'm not like intimately familiar. So some of that was new to me as well. But don't you think yours is better don't you think he he's in 17:00 a crappy carbon program. I mean, I think that true care does a great job providing Farmers the most transparency. I think we provide the 17:09 most summer flexibility. We've really tried to tailor this to our farming audience and our great dealers that are supporting us because you know at the 17:18 end of the day we want to make sure that it this isn't this is a very smooth process and I know that some of those processes out there can be very cumbersome. 17:27 I want to hear about the process. But before I do that, I want to bring temple in Temple you're involved in a carbon program. That is through 17:33 the country's biggest AG retailer. Talk to me. so back when this carbon credit thing first came up. I kind of I talked to a bunch of different people and I 17:45 I didn't even know enough to be dangerous and I'm assuming that nobody did but I wanted 17:51 to be at the beginning of it. So I started talking to a bunch of different companies. I talked to three four five of them. 17:59 Both the reason that I choose to do. The AG retailer one one is because they already have my data or they already 18:09 have a piece of the pie than they already. They they need to generate all of my reports. So that was one it made it very easy. So we 18:18 talked about like with Mariah. She says you don't have to be a Land O'Lakes customer to be part of our thing. 18:24 Presumably you don't with nutrient either but we can go and say your program is through nutrient but you buy your inputs from nutrient 18:30 and there are a lot of my Go ahead. It makes it very easy because they have access to my climate program. They 18:39 have access to my John Deere accounts. So any reports that they need they got an in-house person where they 18:48 can just kind of pull it right in so it made it very easy for me where I didn't need to add one more job to myself. That's why I did it the other 18:57 reason I did it with nutrients because it was a one-year contract. I didn't want to tie myself to it for a lengthy part 19:03 of time because I wanted the ability to jump into a program learn about it. 19:10 Figure out the ins and outs and then I can jump out of it and do something different down the down and down the road. Maybe it's 19:16 with true Terra because it sounds like it's pretty good. I won't be up there where Kelly is but so one 19:22 of the problems that we have here on our chest Big Bay Watershed is we already have cover crop programs that we get 19:31 paid for from the government. So we are covered crop programs to state of Maryland. We already get paid up to 65,000 19:37 acre to put cover crops in so we can't double dip so we have to find a different avenue. So that's the one that's one reason. I really wanted you 19:46 to be here. We're here listener again type in your questions. If you have a question and also we can raise your hand but we try to do a thing here where we got 19:55 Kelly's kind of the grandfather or Godfather of this whole carbon thing. He was one of the very early adopters and 20:01 also in the early payees. Yeah, man, because he's a different geography and has some unique challenges that don't fit the carbon mold is here. 20:10 Talked about he's in a pilot program with Rabobank and with temple being in Maryland in the Bay Area. They've been 20:19 under the gun for environmental reasons under for their farming. They've been doing stuff that is now new in Ohio, you know, there's no new in some other place. And so 20:28 you've been doing cover crops anyway, and so the idea you're gonna be incentivized through this isn't really the case you were already doing some of this. 20:36 Yeah, so we were already doing a cover crops for the last 15 years. So it's not that's nothing new to us. So we had to have something that's a new 20:45 practice. So new practice would be something like reduced tillage changing going 20:51 from strip tillage, you know from a conventional program in their new to or whatever but a lot of us again is 21:00 already doing that. Um, the other thing that we were doing is is to reduce the total of nitrogen that we 21:08 applied to our grass crops wheat and corn so we were doing that it this being a lot of things that we do in extreme AG applies to 21:17 that because we are all about efficiency and some of things that we are grabbing and pulling out. I can reduce my my total in by 5% 21:26 because I'm gonna add something else in there that gains me above that anyway, so I don't care about that. So that's what brought me into selling my 21:36 carbon crash because I was allowed to do that. Okay. So now it good. You're the one year program. 21:44 And for Kelly's they look back. I mean basically they gave him money for practices. They did four years ago. And yours did not. 21:53 Yes, it did. It looked at two years prior. So they pulled my two years prior up. The problem was is I didn't get any money for the years prior because of 22:02 I had a year in there where we had a really really wet fall and we destroyed all of our ground so we had to go back in and we 22:11 had to fix everything. So there was I want involved there was field cultivators involved and we had to straighten out all of our ground and then bring it 22:20 back so I lost that. But it also brought me back in and said okay here is a different practice that he's 22:29 changing from a conventional situation into a minimum till or a strip till we do a lot of strip tillage. So it kind of brought me right 22:38 back into that. So it actually worked out for me but they had this sliding scale where when you do all these 22:44 things it works out very well one of the problems that we've seen. is 22:51 If we get into a situation, we you make this plan, right and you say you're gonna put corn on this x 23:00 field and you end up not being able to put corn on that field. You have to put it in soybeans because of weather doesn't permit or something bad happens that 23:09 becomes a real problem in the program that I'm in and you basically through that one out the window and you don't get paid for it. 23:18 So they they haven't they haven't fixed all the bugs. But it's getting better. Okay. So you your your program lacks flexibility it it 23:28 is convenient because through nutrient where you already do business. They already have access to your data Etc. So it's got the convenience factor. It 23:38 doesn't have the flexibility Factor. It also has the non long-term commitment for people that are afraid of long-term commitment you you don't have that. Excellent one year 23:47 how much? Um right now so I know Farmers never talk about money Temple. Remember every farmer you've ever met is just barely getting by they 23:56 don't have any money. They just you know, they just bear just barely breaking even anyway, go ahead we talked about money openly here. So especially when it's yours 24:05 Tough by reducing my total and my five percent using a stabilizers that's like nine dollars an acre you start Aiden to it 24:14 when you start changing practices. I'm attitude all about 18 dollars an acre, but then you got to Aid in the fact that I already plant cover crops. So 24:23 then that is 65 hours an acre on that that I can't capitalize the other way. So in my better in my worst, I don't know where that that falls but 24:32 it's still a really I'm not saying it's the best program. But for a learner that I wanted to learn and I want 24:41 to learn some mistakes as I went. This was the easiest one for me to dive into to learn. 24:47 Diamond I've got a comment so in Temple brought this up so changing practices. So when we got in this program as a beta 24:56 program, you know, they said you got to change a lot of practices. Well, we were already doing a sustainable program on our 25:03 rice everything we grow we have tried to do five years back 10 years back trying to be more that is being sustainable and 25:12 doing the practices that we need to do for conservation. Not necessarily no deal, but just 25:18 all the other practices that go with this so we actually got penalized. About already being and I think a lot 25:26 of extreme out guys are gonna see this we already doing these practices that they need you to change you're doing those five years ago 10 years ago, you've 25:35 already adapted to that then you're getting penalized. To be able to get to carbon credits and that's one thing to kind of sucks with the program. Yeah, by the way, it's kind of I've got 25:45 ground and see our p and my brother the farmer when he is still alive always made the point like The grout they say it's got to be Road crumbs like this. Hay 25:54 field that I have should be a hay field because it's you know got slopey highly erodible land and for 26:00 only way to put it into a conservation program means I should do something that you shouldn't do anyhow to then be eligible to do what I've 26:06 been doing all along kind of like what you're talking about Mariah. Let's address that. Why are you punishing people for doing the right 26:12 thing? Hi, it's not that we're punishing people to do the right thing, you know, and I I am gonna take a step back because I like I'm dying inside internally just a little bit. So one 26:22 of the things I think is important to address and what Temple said is, you know, having the flexibility of a one-year contract. There is a lot of Science and there's 26:31 a lot of reasoning behind why we have longer term contracts why we have these reporting Tails it is 26:37 it is a like it's like fingernails on a chalkboard for me some of these because it's There's there's not enough scientific approach behind 26:47 some of these and what we are selling is not sound enough at times and that could potentially be what corrupt some of the market because we don't 26:56 have enough of the facts and the whole purpose of what these organizations are buying offsets for is to basically buy permanently stored carbon. Okay, so 27:05 they want to be able to buy carbons that they feel confident that is going to be long term in the ground and it's going to stay that way whenever we open 27:14 it up to a very flexible contract like a one-year contract. You're not actually providing any climate benefit 27:20 any benefits or any environmental benefits because you have no idea if the farmer is just gonna go back to their old practice you have an idea if they're just gonna till it up again. 27:29 And so then all those climate benefits are going to be automatically reversed for a farmer. It's probably not a big deal, right, but 27:35 for these big investors that are that are investing billions of dollars into climate smart Commodities and into 27:41 the carbon Market. It's a really big problem. And so I I totally get the need to have a flexible contract. I understand that wholeheartedly but 27:50 the reality is there is a reason as to why people are asking for that and it truly is so that way we can do it the right way. We can keep the carbon stored where it needs to be and we're 27:59 providing that benefit to the organization that's purchasing it. 28:03 yes, you said a lot there and it is important to look at things from the perspective of the purchaser. Obviously temples looking at from the operator. Frankly. 28:14 I thought everything he said was something I would agree with all so I would have gone with what was convenient and easy, especially my learning curve is ramping up. I would have gone with 28:23 the shorter term thing because I'm not even sure what I'm getting into, you know, it's kind of written written before 28:29 you buy kind of a thing. So I would have done probably everything that Temple did and I understand that but I also 28:35 understand your your position is you've got to sell this on to Microsoft and Microsoft once longer term practices. 28:44 Yeah, I mean, I think that's that's just really important as we as we are evaluating all of these marketplaces to know 28:50 that you know, things are very much for Wild West. It's still very loose out here. But what we do know is that we have to have buyers at the end of the day and those 28:59 buyers want specific things. Kelly what specific things do those buyers want you or the absolute Pioneer at this? I mean, I 29:08 almost tear up to be honest because it's carbon that brought us together. And and before we hit the record 29:14 button when we were talking about your complexion, I have such sentimentality for you, but now that you're not as sunburned. It's 29:20 like it's like we have we even got a different relationship that we had back when you used to let you know you're pigment change with the Sun. But now now you're on 29:29 a carnivore diet, you're the carbon guy and it's carbon for us together. I just I'm just full of emotion right now. Not as much 29:35 as Mariah was when she got mad. Basically what I heard there. She wanted to hit Temple. She yeah, I agree 29:41 physically was good. Anyway, I was not mad. First of all the way that Damian and I met was because he creeped me on Facebook and I was a little taking him back by his 29:54 overtures to want to become friends and things like that. I was a little nervous about him still maybe a bit of that exist. I like to put that out there. You 30:03 know what there's a fine line Kelly between stalking and just showing somebody you're interested. All right, that's what it comes 30:09 down to. Okay. That is a fine line. You're correct. I think you may be crossed it but that's a another story for another time. So what is a Shopify what what is it that 30:18 you well had to do did you know you did have to change you did have to change some practices, or maybe you didn't I don't know. 30:25 Know what you know. Just like I am in most other parts of my life. I got lucky for the time that we did that, you know, we we incorporated 30:34 drip irrigation. We incorporated winter wheat which then helped us incorporate cover crops indoor operation and it just happened to coincide 30:43 with the timeline that Shopify true Terra true Tara wants and I I feel that being, you know, 30:52 I hesitate to use the term but being the Pioneer that I'm viewed in this area. I have the unique position to appreciate moriah's 31:01 perspective and temples perspective. I I will say first and foremost that I think agriculture is bad very bad 31:10 at understanding the perspective that the customer is always, right. So, you know agriculture wants to raise whatever 31:20 crop they want to raise and the customer supposed to understand and just accept that and no other 31:26 industry in the world. Does that okay? You know, we're gonna raise what we want to raise and and you as the consumer supposed to buy it and 31:35 accept that that that's a poor business model. And the carbon Market the carbon Market is starting to expose that. 31:43 but you know Temple and I are good friends and I understand what he's up against, you know here in Western Iowa. I 31:51 don't have the I don't have to deal with the weather issues that Matt or Temple have to deal with and the 31:57 carbon Market also has to understand that. What Temple talked about in that difficult fall that he had? 32:06 that that shouldn't necessarily be dealed with shouldn't necessarily be viewed as tillage it needs 32:13 to be viewed as repair and Temple's got to make a living Matt's got to make a living and even though Temple wants to incorporate no-till 32:23 and cover crops into his land if he has a difficult fall and he's got to be able to get his 32:31 crop out to make a living. And then if he if he damages the ground in a short-term way because of that before he puts his crop 32:41 in the next year. He's got to be able to repair that to me that doesn't need to be classified as tillage it needs to be classified as repair and there's got 32:50 to be some understanding between the carbon market and the agricultural Market as to what's going on. Well, that's I view it 32:59 what we're talking about is a level of flexibility but also level of understanding and we're not been anyway, I mean one percent 33:05 of America Farms a few percent of Americans are involved with agriculture peripherally, the people that are buying these carbons markets or they're 33:14 paying for this. Don't live where we live. They don't do what's right do so absolutely they're gonna they're gonna 33:21 struggle with the comprehension because they've never done it and we're not being any way mean. It's just that they wouldn't grab 33:27 some of that. There's a perception. By the way, he's mentioned about your irrigation. My friend will tells me that a couple of 33:37 our friends from netafem around here. Thank you Nana from being here one of our sponsors if you happen to be on here and your sponsor and 33:43 I didn't recognize you it's not because I'm being mean I just didn't know you're on there. So anyway, 33:48 There's a perception that this. Is a scam there's a perception that I'm just giving you my information Mariah. I 33:56 want you to go first. Basically, here's what I hear people say and you know, I'm a bit of a conspiracy guy myself. So I'm 34:02 right there with I think that you're just doing this to spy on me. You want to know what I was on my farm you're gonna surveil 34:08 me and you're gonna give me money and like all the sudden steal my identity. Is that what's Happening Here? 34:15 Only to you and maybe Kelly I don't know. Um, no, I mean the reality is guys like I that is why it's so 34:24 important that you pick a good partner, right? It's important that you have a partner, you know, like true care 34:30 that you can trust that you feel is going to protect your data is going to protect you as an individual something that we do as Futura 34:39 is as we have our buyers. We are only providing them basically aggregated data with the the field the geolocation of 34:48 the field. They do not know the grower name. They do not know where you live. Okay, like, you know, like when you sell sperm, I 34:57 mean not that I've ever done that when you go to the sperm bank as it kind of like that, I'll be honest with you. I have no I don't 35:03 know you I don't know honestly, you know, I don't know of all the things you have asked me in the last few weeks. I am most talked by that one. I don't 35:12 know. I mean, I do know that we Land O Lakes and actually Tara in our in our partners that we work with in our AG retailers. They take data privacy very very seriously. And so 35:24 we are not going to share your name all joking aside about that but there are perceptions that this is a scam. There's also perceptions that okay, 35:33 you're gonna control me, you know farmers are pretty pretty independent types. Are you gonna tell Temple what he's allowed 35:42 to do? No, I mean the the whole perception of the carbon Market is not to just come in here and tell farmers and regulate them and tell them that they have to do X Y and Z, right? Is that 35:51 what the EU is doing today? Absolutely. That's what's happening. And that is why I think it's so important that I 35:57 really quickly right your sound is just a little bit. Oh, I'm sorry. No, no, no, no. No, but the boys you just said something that I will make sure 36:06 our listeners and our participants are paying attention to you said the EU the European. Yeah. 36:11 The European Union is much more heavy-handed than we are here in the United States of America or even but yeah, but what repeat that because 36:22 I think that's worth hearing again. That's why I want you to say it again. Yeah, so that so The equal carbon credits they are just setting the expectation that 36:38 if you want to sell your product you will do you know X Y and Z that's and what we are trying to do here is we are trying to we're trying 36:47 to mitigate that right. We want to create more of a voluntary Market which is what we are doing. That is what all the organizations in the US are, you know, they're voluntarily 36:56 reducing their greenhouse gas emissions. We are very much supporting that process we want to make sure that we stay in that so that our Farmers have the 37:05 freedom and the flexibility to do what they need to do to be successful. And and I think that is one one piece of 37:11 it as we're talking here. Yeah. No, I think it is. That's why it's worth. You know, when we think about this subject which is why we record the 37:20 podcast why we have you on here now is the the countryside And I'm talking Farmers have not 37:28 hugged and embraced this carbon thing as you had thought maybe they would have and I think we got to look at it as a secondary Revenue Source, 37:37 you know, we talk about diversification of income when you guys fifteen dollar beans and seven dollar corn. You're not worried about income diversification because by 37:46 God twelve dollar wheat is gonna be all the income. I you know, I need but there's gonna be a time when things are skinny all of 37:52 us on this call or old enough to remember when things were skinny at least once or three times in the business of Agriculture. I look at this as 37:58 an opportunity for income diversification. Where on a bad year. Maybe you break even on the farm, but the carbon 38:04 is some margin for you. And so I think that's what we're looking at man. All right. Sorry Temple you had your hand up. Um, so I need 38:13 to say something about this everything that Mariah is talking about is right there is gonna be regulation that comes in and you're not you're talking to a guy in 38:22 the area. That's extremely ready what I will tell you. You with it with chain change and with more regulation and with something that 38:31 is is cutting edges the carbon market and doing things and making us change or ways will make us better Farmers. It 38:40 will make us more efficient Farmers. Everything that we're doing here in this group is all about efficiency and all of 38:49 your sponsors play a part in all the way back to this carbon thing. If you really think about it you look at what we're doing to reduce the 38:59 amount of phosphorus that we're putting in reduce the total amount of in that we're putting in reduced tillage by all the different planner things that we're doing all these things 39:09 don't go all the way out to residue breakdown all of these companies that help sponsor you guys own extreme AG it all ties 39:18 back to this carbon market and I can promise you the farmers that I'm around that are heavily regulated around here. They are 39:25 Some the best Farmers I've ever seen in my life. It has made us better. It has made us look at things at different way. And I think this is 39:34 where the carbon Market this is just the next step for us and can I say something diamond? So just to what Temple said? 39:43 You know, we have had to change and I'm going back to five to ten years ago. with social media 39:51 We've had to change to be better Farmers for the Suburban mom and I use the term lightly. I don't mean that 39:57 in any in any they're overdistic way. No, we're not being chauvinists that we're talking about our Mark. We're talking about our Marketplace. We're not in any way Big Show Mystic. There's generally the 40:06 person that buys food is the woman head of the household or and and so yes, that's yeah Dallas and she's never been on a farm and she's buying food it heavy or 40:16 wherever you know, and and that's who we've had to satisfy. So we started that five years prior, you 40:23 know, I will say 15 20 years ago. You know, we probably wasn't doing the things we needed to do to be sustainable and be good for the environment. 40:32 But you know, we've been doing this now for several years and I still want to know what you know, what the what the answer is on what true tear 40:41 on the guys that's been doing it because I was I was asked. I don't know seven years ago. What is your biggest challenge? 40:49 And one of them was resistant weeds and the other was Barbara mom and social media because we 40:55 get we get a tag for killing people trying to provide safe food, you know for for the for the Suburban mom or the families, I 41:05 guess. I'm maybe she's so so the point of so we've done all this stuff earlier and then we get penalized. 41:13 We can Karma credits even though I'm not no till there's a lot of practices that I've been doing that are not new practices. 41:22 So, you know, why don't we get penalized for doing this and you know from being Frontiers and doing this. I guess it's my question. 41:32 Would you like me to answer? right any answers so far. We've brought it now a second time saying that we're punishing the 41:44 people that do what's right your answer. The first time was no we're not punishing you but there is some reality man. Yeah, man 41:50 can't get subscribed or rewarded for stuff unless it's a new practice and he's been doing it because he's at the Forefront. He's been doing it ahead of when the neighbors did and now 42:02 it kicks him out or gives him a lesser score, right? Yeah, absolutely. Not wrong, right? I mean, I'm sure for most of you that 42:10 have been doing this for an extended period of time it very much feels like like you have no play in this and and today 42:16 that's certainly that's certainly accurate. Right? What I will tell you is that just hold tight. Well, maybe 42:22 you don't fit today but as we start talking about the nitrogen reduction piece, you're gonna be able to play in that because it 42:28 doesn't matter if you're doing conventional till if you're doing cover crops for 20 years, you're going to 42:34 fit in that nitrogen reduction credit piece as we talk about local carbon intensity grain again, that's going to be a place where it doesn't matter if you have been if you 42:43 have been a no tiller for you know, 20 years. It doesn't matter. You know, what your practice status is at that point in time. Those are 42:52 things that we're working on and we're building on and so, you know, I would say that it is it ideal right now. No, does 42:58 it feel very much like you're you're missing out. Yes, it probably does and do I have a great answer for that? I really don't other than please know that the 43:07 Tree is trying to correct that we recognize that we understand that Land O Lakes is been very deliberate as we have submitted funds through 43:16 a government grant for a one-time carbon payment for all of these Farmers like yourself that have been doing this for 20 43:22 plus years. We're trying to take aggressive action to to mitigate what your experiencing Right. There's a couple things we're gonna kick it over to Kelly. 43:31 Then we're gonna come back to you. We're gonna talk about the enrollment process and how it works. But before that Kelly is in 43:37 the beef business, but he's also what we call a beef snob. He right now you talked about when Temple said 43:45 something it was like fingernails on a chalkboard. It made you cringe. You know what he's been looking at the Holstein paintings 43:51 over your shoulder. Here's the most anti-hole in son of a b****. You'll ever meet. He hates dairy breeds. He's meal about them. He says that people who eat beef 44:00 from Holstein steers are skinny and ill-temperately. That's what he calls me. He's a he's an anti holsteinite 44:06 and I just know that he's really bothered by those paintings of cattle a Holstein dairy cattle over your shoulder. Well 44:12 now that I know that I'm gonna I'm literally Going to go get him a whole steam picture and I'm going to deliver it to him. So, you know what that get him a hosting cast just drop off. 44:20 All right. Yeah, that would be great the process it could be overwhelming. I mean I'm thinking about okay, should I get my my tenant to do this? Because 44:31 I think that some of our practices would work. You know, we are doing some things that you know, we 44:37 should do but it's kind of daunting. What was a process like for you. It was 55 or 60 hours of work to compile all 44:46 the information and you know at that time in the summer of 20. You know again being the first or if 44:54 close to the first person to go through this. You know for lack of a better term we were making it up as we went along a little bit to try to figure out what to do. 45:03 For the amount of money we received I really don't think 55 or 60 hours is a lot of work Mariah and her team have that streamline now, it wouldn't take 45:13 us 55 or 60 hours anymore. A lot of big return on investment there to go through the process of Mariah and 45:22 her team and and to get this done. Yeah. I mean like for the average person 491,000 for 45:28 55 hours work. I mean, I'm not gonna work that cheaply but a lot of people would find that to be a pretty big number. I 45:34 mean, I I agree that Hey morose, Matt, right? We're gonna get to you about the process Matt Matt. Obviously gave you a few hundred dollars and says 45:47 it's for the beef. You still haven't shipped them. He a few hundred dollars to him is like like get some pennies over here in my change jar. That's what for. He's you guys 45:56 rolling in it Mariah. I got question for you. You mentioned something about when nitrogen comes along. This is from class Ghost. 46:02 And so he says nitrogen comes along. Are you saying that there's going to be a program for nitrogen? Is there already something 46:11 that works on nitrogen have Explain some more about this nitrogen thing. Yeah nitrogen is not carbon. They're completely 46:19 different on the periodic table. Yeah, exactly. So, um, thank you for that. I was very obvious. So as we Have the carbon credit program. We are also going to be standing 46:28 up what we call like a nitrogen Reduction Program or a nitrous oxide program. So as you take a look at greenhouse gases, obviously what we are working with 46:37 this carbon dioxide what you would be then removing from the atmosphere As you move to a nitrogen would be a nitrous oxide. Okay, and nitrous oxide 46:46 is actually 297 times more potent to the climate than actual carbon dioxide. So there is a there is 46:55 a strong one and need to begin working on nitrogen reduction what that looks like for us. So is it was still be very based around pain on 47:05 a an amount of tonnage? So you still be getting up to that $25 a time. It would be a natural reduction in nitrogen maybe paired with a stabilizer a 47:14 reduction in nitrogen with compensation of a cover crop. Like Kelly has talked about some red clover stuff. You know, that's what it would be looking like we are doing a pilot 47:23 in Iowa in 2022. In 23, and then hopefully we'll be ready to Launch. 47:29 Okay, I think that's adequate because it's again, it's still kind of moving Target. It's not it's not it's not cut and dried right now, but we are going to see that by the way, is it nitrous oxide 47:38 laughing gas? Oh, maybe I'm not sure you out part of me. I don't know. All right, maybe does I don't know. I don't know. I'm not there. Okay. 47:48 Okay process, but before we get back to her on process. 491,000 even if you put that across all of your Acres, which you didn't Kelly is a 47:59 ton of money when temples getting 18 bucks an acre. Matt is going to get about 50 Grand on 2,000 acres that by my math is 48:08 about $25 an acre. How how did you get so much more are you? Why are you better compensated for your carbon than 48:16 those? Two guys are? We sold what I would say what I would describe as vintage credits. We sold credits from 2015 to 2019 on some 48:27 of the land then we sold credits from 2016 to 2020 on some of the other land, you know, we were in a five-year vintage program Mariah wants 48:36 to correct me on that term, that's fine. But we sold we sold credits that went back five years. Okay, and now we are so selling credits that go forward and 48:45 I don't believe Matt and Temple were able to to take advantage of things like that. So it wasn't because you did a bunch of different practices. 48:54 You didn't run out and put in carbon vacuums or some crazy thing like this is just because you sold more years than those guys have 49:04 Yes, because of the programs we were involved in. Absolutely. I understand Temple. 49:09 You look like you have a contemplative sort of pensive sort of look on your face. You're getting ready to say something or you just being contemplative. I want 49:18 to choke Kelly. Because there's no more. No, he's making more money than you. Yes, yes. He has helped me make a lot of money. Oh, actually 49:29 all these guys have helped me make a lot more. Um, that's what things that hey I want 49:35 to just will let's put that out to tell everybody why they should pay attention to extreme AG. 49:40 All these guys at extreme AG have helped me make more money. That is the statement right there. That's like boom mic drop done. That's why we were here. Go 49:49 ahead. So, you know. Kelly was out able to use those those, you know, vintage credits, whatever you want to call that for doing 49:59 the right thing for all the years prior and he's bringing it all forward how it hurt me was is exactly what you know the repair 50:08 or whatever you want to call it that threw me that through me out and it wasn't able to let me go forward. You know, we've got 50:17 talking about this one year flexible program. I did it so I can kind of you know, this is kind of introduction for me. 50:25 Now maybe I take it to another level. Maybe I talked to trutera or whatever else and try to to take it to another level but it allows us to 50:34 get our I think it's important to have an introductory level and and Mariah can can you know go further on that? But I think it's extremely 50:43 once you really did before Temple was dispute and threat. Yes, you want us she wants to smack me is what you physically dispute your 50:52 assertion. And then yeah, like I'm being ganged up on and that's you should you should because we are you through me on the bus 51:01 from the beginning but I think it's important to have the introduction so you can learn something because one thing we found 51:07 out in extreme egg is to dive in get your feet wet and learn something and then take it to another level and I feel like that's what 51:16 that stuff. Yeah, and I I agree with that. Yeah, and we'll let Mariah rebut, but we have to get to the bigger question getting 51:23 started so you Cut Temple and threatening some more Mariah. Oh good. I'm good. It's time. It's okay. Would you 51:31 do understand a person that says since I said so new and it's so confusing and there's so many different. I mean, I'm getting a lot of noise. I'm getting a lot of noise in the 51:40 marketplace from Indigo and from trutera and from Nori and from this and from the social media and what the guy you know down the road says there's a 51:49 lot of noise and that's why I guess they're still a lot of confusion. I want to get started. Okay, I'm a farmer. I'm 51:55 listening to this webinar. I listen to the podcast. I want to do this right now. Let's do it. 52:01 Okay. All right. Now what do that? If you go to Twitter ad.com there you will be initiated a survey there will be 52:10 a start survey here link. You're literally gonna take a 30 second survey. Okay, and I am not getting it truly is 30 seconds. We're gonna ask you six or seven questions. I can't remember exactly you're 52:19 gonna input some information. This is by knowing meaning that you are signing up your signing your life away this truly just an entrance you're gonna take that survey. 52:28 We're going to respond to you within 24 and 48 hours and we're going to tell you like hey, we think you're great fit or no, maybe not for this program, but we'll keep you in mind. Once you 52:37 get down that path. You're then going to enroll your Fields. Okay, you can get really far down the path with us before you're actually ever signing anything. Okay, 52:46 so you will be able to get an estimated payment. You will go through data collection. We will get you through verification 52:52 and then we will get you to final Contracting and so the whole process payment is about nine months. So it's a it's 53:01 it's kind of a process but you have many times throughout the process if it all you're not comfortable you can say no or you can pause and start later. But 53:10 the first the first step is to go to the true Care Act website. Okay, so you just said I can fill out a survey in 53:18 30 seconds. Then you're gonna get an answer to me. I would reasonably expect to get money. 53:25 starting when Yeah, so once you sign that final contract and you go through the verification after that nine months 53:33 basically once you've done the survey data collection, we've done soil samples, you've gone through quantification and final contracts. Then you will get your upfront payments. Okay, 53:42 and so it will be about nine months before you actually see a check. Okay? Yeah. Do oh, yeah, if you're 53:53 not no deal even apply if your minimal deal. Yes. Absolutely. You do not just have to be a no-tiller. We 54:02 absolutely if you even just do one less pill impact you actually qualify for a carbon Market. I think that is a big misnomer everyone thinks that you 54:11 have to fit in a certain bucket. But if you do one less Village pass and you did last year great you qualify. While we're on that subject what other misnomers 54:20 are or data points that are confused or misperceptions might there be I already told you a couple of that. I that I've heard you're 54:29 gonna steal my data you want to just give me a few dollars an acre to really control me. Those are some of the things that I've heard 54:35 in the marketplace. What are some other ones? Yeah, I mean, I think the most common ones are like what Matt just said like you have to be no 54:43 till I think the contract is a huge misnomer, you know, people are saying oh my gosh, you're gonna sign away my rights to carbon forever. That's not the case either right? I 54:52 mean, there's just some very basic things you really hit on the most popular ones to be honest. All right. 54:58 Now, let's just say this I do this deal with you and yeah and then and you're supposed to be for the next few years because you said your company's that 55:07 give you the money because your money comes from call it Microsoft or what have you then next year. I say, you know what that 55:13 was neat. I got your money. I'm bringing out the moldboard plow. I'm a God here and just drive over this field 18 55:19 times because screw it. I want to farm like we did in 1950. You can come try and take my money back. 55:26 Yeah, so, you know the unique thing about Land O'Lakes. unique here is That we have a buffer pool. Okay, and so from that buffer pool 55:39 meaning if we have a contract with a Microsoft we're 100,000 tons. We will actually purchase about $150,000 tons because we know naturally we're going to have some attrition whether 55:49 it be from Mother Nature, whether it be from the land being sold or something like that. We have tried to be as farmer friendly as possible. Now if you have like if 55:58 you are blatantly trying to abuse the program, you know, yes, of course there are legal things in there. But if 56:04 you you know have a mother nature event, if you lose the operation, you know, something like that we are not going to we're not going to come back and ask for for that 56:13 money back. That's because you know because we have that buffer pool, so we feel very comfortable about that. Do you have buyers, right? 56:20 If we have three hurricanes and with which we've done that before, yeah, oh and wrote Our Stuff need to eat in the 56:29 Delta get it have to get get in there and and redo all the ground. It'll be more like a repair like Kelly saying, yeah. So what we would do Matt is we 56:38 would actually let's see that we had yours sent to an organization, right? We would actually pull your stuff out. We would fill it back in with someone else while you're repairing it it yours 56:47 will fit in the buffer pool and then we'll just start again whenever you're ready to go. 56:51 Got you. Yeah. Thanks for that Mr. Perception. We got one more question from an attendee. When will true Terrace and their buyers 57:00 remove the exclusion of farmers have been using acceptable practices for the past several years, by the way. I've been denied acceptance 57:06 into true tariff program for that. Very reason. I think you kind of spoke to that previously, but it looks like there's still this thing does persist. Go ahead. 57:15 All right. Yeah. I mean it just goes back to what I was saying earlier, you know, the reality is it's not that we don't want to accept you. We do 57:24 want to accept you. We don't have buyers that are willing to purchase those long-term vintage credits. I think 57:30 it's important for everyone to know that the the people that are buying these offsets today. They want to be able to say that they influence you all to 57:39 make the change rather. We believe that or not on this call, right? They want to be able to say that they they influence 57:45 the farmer in Western Iowa to make the change that was going to make the climate better and until we get over that home right until we get 57:54 Of these organizations understanding that we're still going to be kind of going down this path. And yeah, I think that again we always have to think about it 58:03 from the perspective of the buyer, you know, if you always think about it from your perspective, there's a customer there's somebody they want 58:09 to be able to tell their customers and their shareholders more importantly we did this positive change which I think to that 58:15 that question that was asked it's not because true Terra is attempting to screw you. It's because their money comes from called Shopify 58:24 and Shopify says we don't care what happened nine years ago. We want to be able to tell our shareholders and our customers that we influence this. Is that what I'm hearing exactly if 58:33 we were making the rule believe me, it would be much different Matt miles. You got a big operation. You're 58:39 a business guy. You have a few dozen employees. You have a trucking company your business minded person. Um, this is 58:45 an experiment right now between you and rabbit Bank you're interested in probably branching out. I hear you asking why these questions three years 58:51 from now is carbon gonna be a significant enough amount of Revenue that it actually matters for Miles Farms. 58:59 I mean, I really hope so there's some Chinese got to be made just common sense. And I'm gonna put that quotations come and sense, you know 59:08 with different stuff. We talked about like hurricanes or what Timber went through, you know, running the ground, but if we 59:14 can get this thing reformed, you know, it's new. It's just like Biologicals or anything that comes out new the internet when it first come out, you know, whatever, 59:23 you know, when it comes out everybody's gung ho on it, but then they have to stop and back up and say, okay. What's a common sense way to 59:32 make this work? And I think I'm hoping that's what happens with carbon credits to be able to fit everyone in there. You know, like she said even 59:41 if if a guy's a hundred percent conventional deal, which is not a lot of that anymore but working he fit in here so, you know, I'm hoping 59:50 and in five years that you know or three years or whatever that it's it's something that everybody can participate in you know, they make the main 59:59 actor. State like Kelly or Temple, but some sort of way to participate in this to make, you know makes environment better. I'll be honest with you. It's 01:00:08 something we need to do. Yeah, right. I mean I don't think anybody actually opposes it from the standpoint of you, you know, Carbon being 01:00:16 putting more carbon in your soil is good generally cover crops and conservation practices are good. That's why 01:00:22 we have them right. So there's nobody really would oppose that it's a the bigger question is is it viable if I 01:00:28 have to make wholesale changes and for a few bucks an acre? It may not be worth it, right? So that's what So, what's the right number? What what? 01:00:37 We're applying carbon. We we use a lot of poetry litter which is an organic fertilizer and we use that in place a synthetic fertilizer, which we've been 01:00:46 doing that for 20 years, but we're actually applying carbon. I think a load of chicken letters probably 40 to 50% carbon. 01:00:57 So we're actually applying carbon to the soil. No, we may be minimal till. We're applying more carbon to the soul than probably what 01:01:06 we're getting out of solid if we were no teal. So I mean by the time they fix all this and I hope Mariah can address that, you know, that's something we've 01:01:15 been, you know, we ask the question of we're applying carbon to our soul through Ultra litter. Why does 01:01:21 that not counted don't count right now? I don't think so. Does it Mariah? No, I mean you're gonna 01:01:27 get so in the modeling process you're gonna get credit for using the poultry litter instead 01:01:33 of using an actual commercial fertilizer just like Kelly uses, um, an organic basically, but you're 01:01:40 not that's not something that's actually going to qualify you to be to be eligible for this now, I will 01:01:46 say as we get into more of this nitrogen reduction piece that is potentially a play that could fit into into what 01:01:52 that could look like. Great call-off though. You're definitely right. Temple I just went out there to Matt is this gonna be something 01:02:00 that we're all doing you're on the East Shore Maryland where you and your neighbors have been doing stuff for 25 years or 01:02:06 15 years or 20 years that is new in other parts of agricultural regions. It's just gonna be we all gonna be getting money for some carbon 01:02:15 practice five years from now. I think so. I think that once they start to realize what's going on in this carbon market 01:02:24 and realizing that all these companies have some type of a sliding scale that all of us can fit in there somewhere doesn't matter about where we 01:02:34 fit but we're there they're all have enough flexibility that we can get in there somewhere. I think that this 01:02:43 is new. I think that the change is good. I think that maybe not a regulation. It's not the word I want to use but it's 01:02:49 gonna make us better farmers and it's gonna make us have an outreach program where we're gonna Outreach and we're gonna find newer and better things 01:02:58 that we can reduce our application we can reduce tillage whether it's equipment or whether it's some of these products that are out there already that we 01:03:07 can break residue it down. We can get more nutrients into your soul. We can add more carbon in there every time 01:03:13 that we make a pace all these are new things. It's all Cutting Edge. We're going to add to it. I want to know or 01:03:21 it's a question from Mariah. Do we have enough feet on the ground right now? Like that's my concern like to do all this stuff and to 01:03:30 take the core samples and do all the things. Is there enough feet on the ground. Like I'm all the way out here in Maryland. If I 01:03:36 sign on a true Terror, are you gonna send the people out here or is it a yeah. How do you get the people on the ground to to facilitate the problem? 01:03:46 Yeah, great question. And so from we actually Have a retailer that is in Maryland. They have taken fellow samples out. There. They are actively doing that. So yes, 01:04:01 we can absolutely cover that. The other thing that I think is unique about trutera that is that is different is that we do have a group of data coordinators. 01:04:10 And so if you sign up with your Terra and you're struggling with the data process, you need help with the data process. We have 30 01:04:16 people on staff that will work with you for one hour or 40 hours. No matter how long it takes they will do the data for you. They will help you through the 01:04:25 process and make it as easy as we can. Now that said there is still some list from the farmer perspective. You guys have the data you have all the information right, 01:04:34 but it's not going to be such a list that you have to put it into a system and then you have to make sure that you're validating everything like let us do the work for you. Let us 01:04:43 be the experts and you can you can do what you do best, right? So yeah, I like that true Tara and again 01:04:53 your listeners. It's Tru t e r r a true Tara go there and you can and poke around. Also, if you have a question that you come up with maybe 01:05:04 in your you wake up in the middle of night thinking about it. Send your email to support at extreme AG that farm support 01:05:10 extreme magnet Farm will get you covered, you know, and if you want us to you know to help you out find an answer, we'll do that. 01:05:17 Going around here to our last one. We heard from Matt about the future and whether this becomes a significant Revenue Source, 01:05:23 we're about from from Temple that indeed and you know, I'd add the temples thing. This is coming. It looks like it, you know, you don't 01:05:32 need to be a crystal ball reader to realize that there's a lot of environmental push and and you know, agriculture is 01:05:38 gonna be it. My hope is that it's always Market based versus it being like a European Union to Mariah's point. If it's Market based, these are solutions 01:05:47 that we can all work with and and we can make money and we can make decisions that are good for our operation when it's the heavy hand 01:05:53 of government. I I fear that and I think everyone is call probably would agree with that. So this is a market based solution Kelly Market based solution you are for 01:06:02 a forerunner the whole entire thing. What's your last thought here what we'll wrap up this webinar on demystifying carbon markets. I think from an agronomic perspective without a 01:06:12 doubt the more carbon I can put in the soil the better. It is for my yields and the better it is for my pocketbook. I think you know I'm 47 01:06:21 years old. This is one of the first times in history. I ever remember Farmers as being painted as the good guys as a part of 01:06:30 the solution to something, you know, and this is a huge problem. I think we should embrace it. I you 01:06:37 know, this is an agronomic carbon-based discussion. I don't want to become political but Farmers by and large are right 01:06:46 leaning. Carbon buyers by and large I think are left leaning. I think part of what's prop what the problem is with our country and 01:06:55 our world today is the disconnect between the right and the left. 01:06:59 And I think this is the beginning of the healing process between that where we all come back together. I think 01:07:05 it's a common problem between all people. I think there's a disconnect between the people and the cities and the farmers and the carbon 01:07:14 problem. The climate problem is a is a situation that we all live in and I think that this brings us all together. 01:07:23 And I think it's a healing process for for all of us and I and I'm proud to be part of it. And I'm proud that agriculture is at the Forefront of it. 01:07:32 Yeah, and I think that. Matt Kelly, Jack me up with that comment. He needs room for the hour Governor. Thank you. 01:07:43 That was good. That was well said well said, all right. Thank you. I think that I think the important part about these webinars is knowing when is a 01:07:52 good time to go out. I never go out right there with what Kelly said in the main thing here is we gave you answers to your listener. Our role 01:07:59 here was to help you. We're still learning about some of this ourselves, you know, Mariah has a lot of answers and she even admits that there's gonna be changes coming next year that, 01:08:08 you know, nitrogen and and whatnot. By the way big shout out to our friend Kevin that's not here, but we have somebody else that pronounces it nitrogen 01:08:17 just like he does and that's my friend Temple who calls at night urgent anyway, so we were here for the answers. We want to give you answers. We 01:08:26 we strive to always bring you interesting topics. Our July webinar is another interesting topic and I would like to invite all of you to be at this 01:08:35 we're gonna be talking July 7th that is three weeks and one day from right now three weeks in one day from right now is our next extreme 01:08:42 AG webinar and the topic is going to be mid-season practices. To mitigate stress and boost Harvest results that you're 01:08:50 probably overlooking. You know, we're putting it out one week earlier than normal because we want to give you time to actually Implement 01:08:56 these practices the guys from extreme out you're gonna be here or when we talk about mid-season practices that you can be doing in July and August to mitigate stress and boost Harvest 01:09:05 results that you're probably overlooking. So be sure to join us. That's July 7th 7pm Eastern six 01:09:11 pm Central Time the guys from extreme agree here. I want you to be here as well Mariah Murphy McKay Murphy MK Murphy Atlanta lakes.com is 01:09:20 how you find her. We told Justin any questions you have afterwards to us support and extreme egg. Got Farm 01:09:26 Temple roads, Kelly Garrett Matt miles Moriah. And of course will the behind the scenes master. That is the wizard behind the curtain and 01:09:35 me Damian mace until next time. Thank you very much for being here. Check out all of our awesome content at extreme agnot farm 01:09:41 and thanks for being here this evening.

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