Question 1: With the recent downturn in the economy, is the carbon market still a viable option for farmers?
As lenders shy away from risk and raise borrowing costs, the carbon market will likely become of greater importance to the viability of capital-intensive projects. In spite of the current economic turmoil, the incoming Obama Administration has signalled its intention of regulating greenhouse gas emissions. Although it is too early to tell what sectors will be covered by a national cap-and-trade system, it seems likely that agriculture projects will be able to generate emission offsets for sale to capped entities.