Hemp Farming and Carbon Credits
If you’re familiar with the world of hemp farming and reducing waste, you have most likely heard of carbon credits. The idea of carbon credits has been around since the 90’s, but it’s interest with the US and their involvement with the hemp industry is relatively new.
Breaking Down The Idea Of Carbon Credits:
A problem that humanity faces is that we create too much carbon dioxide, or CO2. Fortunately we have plants that use our CO2 to create even more plants. The cycle continues on as we use the plant’s waste, or oxygen, to breathe.
However; as our population continues to grow, we are creating more and more CO2. So much so that the plants can’t use it fast enough. To address this issue, almost 200 countries have joined together to reduce their pollution over time, this is where carbon credits come into play.
With carbon credits, governments limit how much carbon companies can emit per year by issuing carbon credits. One carbon credit equals one ton of pollution per year.
Cleaner companies can sell their credits to companies that produce too much waste. For example, companies that create more carbon than credits must pay a fine to the government.
Overtime, less credits are issued to companies, making pollution more expensive. And rewarding companies that produce less pollution, or figure out how to get rid of it. This system results in less total pollution being produced every year.
Balancing the Hemp Industry and Carbon Emissions:
The overall goal of issuing carbon credits is to reduce global levels of carbon dioxide emissions. By limiting companies’ carbon production, and rewarding them when their carbon emissions have been offset,, large-scale producers are able to massively decrease their CO2 production.
The idea of trading carbon credits is extremely promising for hemp farmers. Hemp is now a federally legal crop that can be used for a multitude of products; such as clothing fabric, hempcrete, food, shoes, car parts, and more.
Hemp is Making a Positive Environmental Impact
There are a number of beneficial impacts on US farmers that would come from the hemp industry being involved in carbon credits.
1) More Producers Mean More Hemp Based Products
Although carbon credits are an attractive trade for most farmers, the hemp industry is still a bit confusing to navigate the rules and regulations, on top of having expensive fees. With the reward of carbon credits, farmers may feel more incentivized to learn the industry and grow their own crop.
With more US farmers growing hemp, it would expand the market even further when it comes to the US and hemp consumers. From a farmers perspective, it may create more competition, which in turn could create more demand for products.
All things considered, if hemp farmers received carbon credits in addition to selling their crop, it would boost production and make for a rewarding process. Since hemp based products are more sustainable, it’s popularity will also positively impact the entire cycle from farm to shelf.
2) Increased Farm Profits
Since the use of hemp is on the rise, hemp farmers can expect a higher profit gain for the business due to demand increasing.
With carbon credits being added to the equation, companies interested in the hemp venture will be more inclined to start adding it to their business. Aside from receiving carbon credits, selling them is another profit gain.
For example, if the government issues more credits to your company than needed for you to grow all your hemp, then you can sell their leftover credits to another company that needs them. This in turn will give your company extra profit, while helping other hemp companies grow their business.
3) Improving The Environment
It is widely known that the hemp plant has a number of eco-friendly benefits. One of the most significant characteristics of hemp is the positive impact it has with carbon sequestration.
As explained above, plants absorb carbon and release oxygen. Studies have shown that just one hectare of hemp can absorb 15 tons of CO2, which is significantly higher than a typical forest.
This goes to show that the more hemp that is grown, the more CO2 is removed from the atmosphere.
Aside from carbon sequestration, another benefit of hemp is how quick it harvests. A whole hemp crop can grow in a few months, all while helping to regenerate and restore the soil at the same time.
This positive component of hemp shows that a company can not only grow more hemp, but experiment with growing other comprehensive crops in a growing season.
These aspects, linked with carbon credits, show exponential value for farmers and their businesses. Both the farmers and the environment win.
The Future of the Hemp Industry:
As it stands for carbon credits within the hemp industry, it is a matter of when not if the US government will implement something soon. A major positive for both the environment and small businesses and farmers.
With more of an incentive to grow such a sustainable and renewable resource, it is projected that more people will get involved. All of this will lead to positive impacts for our environment.
Earth Merchant is at the forefront of carbon credit technology. EM vastly improves the supply chain while reducing emissions by creating a system where farmers can sell their credits in addition to their raw hemp, and manufacturers can buy the raw materials from localized hubs.