LUBBOCK, TX – As more farmers and ranchers begin to consider enrolling into carbon credit programs, one attorney is warning of underlying details within contracts that producers need to be aware of.
Speaking at the recent Texas Ag Forum, Tiffany Dowell Lashmet with Texas A&M AgriLife Extension outlined at least ten areas that any landowner needs to pay attention to prior to signing a contract.
A good place to begin is to determine whether the carbon credit buyer is willing to negotiate and if not, is this a deal-breaker or simply an annoyance?
Here are Lashmet’s Top Ten
1. Read the contract
2. What practices are required
3. How will payment be structured
4. What is the term of the contract
5. How will verification be done
6. What other uses can you have
7, What penalties could be imposed
8. How broad is the stacking prohibition
9. What data must you provide
10. Other important considerations, include:
a. how are amendments handled
b. rights to assign
c. attorney fee provision
d. payment for negotiation/drafting
e. choice of law
f. venue close
g. dispute resolution
h. class action waiver
i. check scope of waiver causes
(SOURCE: All Ag News)