By NANCY VORIS
Indiana Correspondent

INDIANAPOLIS, Ind. — On a picture-perfect spring day, Sen. Richard Lugar (R-Ind.) welcomed fellow farmers to his Marion County farm and celebrated Earth Day on Sunday by recognizing the conservation initiative of the Chicago Climate Exchange (CCX) and National Farmers Union (NFU).

Their partnership allows Indiana farmers and landowners to earn greenhouse gas emissions credits when they practice conservation tillage, or plant grasses and trees. These conservation practices remove carbon dioxide from the atmosphere and store it in soil and plants.

Since the program began in Indiana last fall, more than 40 Hoosier farmers have enrolled acreage. Indiana currently has over 25,000 acres enrolled in conservation practices aggregated by the NFU.

“I want to congratulate the innovative work that my fellow Hoosier farmers are doing by engaging in carbon-absorbing environmental practices,” Lugar said. “These practices help the environment and present a new opportunity to increase farm income.

“I would like to commend the efforts of the National Farmers Union and Chicago Climate Exchange in Indiana and other states to help promote these opportunities among our industries, communities and landowners and I would encourage other agricultural and environmental organizations to engage in similar practices.”

A third of the Lugar farm is a classified hardwood tree farm, including significant acreage in black walnut trees that were planted in recent years. Growth of these trees produces oxygen and removes carbon dioxide from the air.

The CCX established rules that allow greenhouse gas benefits from conservation practices to be quantified, credited and sold. The credits are aggregated, or pooled, from many different producers and landowners in order to sell them to CCX members that have made voluntary, legally binding commitments to reduce their greenhouse gases. CCX is the world’s first and North America’s only voluntary, legally binding greenhouse gas emission reduction, registry and trading program.

The National Farmers Union enrolls farmers in the program who earn income by storing carbon in their soil through no-till crop production and long-term grass seeding practices. Carbon storage or “sequestration” helps reduce carbon dioxide emissions.

After each calendar year, earned credits are sold on the Exchange and the proceeds, less fees and escrow, are sent to the producer or landowner.

Lugar praised the efforts of U.S. policymakers, researchers and farmers who are creating cellulosic ethanol opportunities while also being stewards of the land.

“We’re taking carbon out ahead of most counties even while replacing oil,” he said. “It’s hard work but it has the merit of meeting our energy needs.”

CCX began greenhouse gas emission allowance trading in 2003. CCX is the world’s first and North America’s only legally binding rules-based greenhouse gas emissions allowance trading system, as well as the world’s only global system for emissions trading based on all six greenhouse gases.

CCX members commit to reduce their greenhouse emissions a minimum of four percent below annual average of 1998-2001 by 2006 and 6 percent by 2010.

Economist and financial innovator Richard L. Sandor is chairman and CEO of CCX, and was named a “Hero of the Planet” by Time magazine for his work in founding CCX.

He commended Lugar for his conservation practices and for being the first Hoosier farmer to sign up for CCX in May 2006, as well as other national farmers who have the same vision.

“Just think if Teddy Roosevelt had not set up our national parks system that we need to keep our natural resources and scenic beauty,” Sandor said. “The farms we have now could all be concrete in 15 years. All of us can make a contribution.”

Danny Reece farmed for 27 years in Henry County, then turned to conservation farming when he moved to Ripley County. He has a 40-acre stand of old timber, planted 25 acres of new trees and also tends 25 acres of warm-season grass.

He and his wife Cathy enjoy feeding the wildlife and have installed a heat-activated camera to capture photos of the animals in the woods.

Last year he enrolled 107 acres in the carbon trading program.
“I’ve been a hunter all of my life; now I feel like I’m putting something back,” Reece said.

The 604-acre Lugar Stock Farm in Decatur Township produces corn and soybeans along the White River.

One of Lugar’s four sons, Bob, operates the farm.
“Bob is the local farmer in the family,” Lugar said. “He is also the environmental steward. His company is helping clean up the White River.”

Lugar’s father Marvin bought the farm in 1931.

“He tried out everything in his lifetime. I guess that’s why Bob and I are experimenters,” he said.

One exciting venture on the farm is a Purdue University genome project for trees, a 15-year experiment that will involve 12 acres and thousands of trees to try and produce faster-growing, better quality trees.

For more information on CCX, contact Dale Enerson, director of the NFU Carbon Credit Program, at denerson@ndfu.org or 800-366-8331, ext. 116. or go online at www.chicagoclimateexchange.com