Public Commentary: The material below presents FG Capital’s perspective on Agricultural Land Management carbon-credit transactions. It is offered for informational purposes only and does not constitute investment advice or a solicitation.
ALM Carbon Projects – Agricultural Land Management Advisory & Capital Raising
Modern regenerative practices—cover cropping, reduced tillage, precision nutrient application—enhance soil health and sequester measurable quantities of carbon. Our advisory team structures these improvements into bankable projects, arranges appropriate capital, and secures robust market access for the resulting credits, thereby aligning agronomic benefits with reliable cash-flow for producers and investors alike.
Project Scope
• No-Till / Strip-Till Conversion:
Minimising soil disturbance to reduce oxidation and enhance aggregation.
• Cover Cropping & Diverse Rotations:
Increasing root biomass and organic-matter inputs.
• Optimised Nutrient Management:
Precision placement and timing to lower nitrous-oxide emissions.
• Integrated Livestock:
Managed grazing to stimulate biomass and accelerate carbon turnover.
• Conservation Buffers & Field Margins:
Establishing perennial vegetation for additional sequestration and biodiversity benefits.
Our Advisory Process
1. Baseline Establishment
• Soil-core sampling and remote-sensing history to define business-as-usual emissions.
• Alignment with Verra VM0042, Gold Standard GHG Emissions Reduction & Sequestration Methodology, or equivalent.
2. Financial Structuring
• Working-capital facilities for seed, equipment, and agronomy services.
• Pre-issuance credit purchase agreements to underwrite adoption costs.
3. Implementation & Data Management
• Digital MRV platforms capturing field operations, input reductions, and yield impacts.
• Independent verification scheduling and buffer-pool allocation.
4. Credit Monetisation
• Structured forwards and spot sales with corporates seeking nature-based removals.
• Optional royalty structures enabling shared upside when market prices appreciate.
5. Long-Term Stewardship
• Ongoing agronomic support, performance benchmarking, and transparent stakeholder reporting.
Indicative Financial Parameters
| Metric | Typical Range |
|---|---|
| Annual Sequestration Potential | 1.5 – 3.5 tCO 2 e per hectare |
| Up-Front Funding Requirement | USD 4 – 8 per forecast tonne |
| Forward Sale Price (Year 0) | USD 7 – 11 per tonne |
| Target Equity IRR | 15 % – 18 % unlevered |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Investor Profile |
|---|---|---|---|
| Senior Pre-Purchase Facility | Pledged delivery contract; escrowed sales proceeds | Fixed price USD 8 / t | Carbon offtake platforms |
| Mezzanine Revenue Share | Subordinated claim on credit revenues | 9 % – 12 % coupon + upside | Impact-focused private credit funds |
| Producer Equity | Residual cash flow | 15 % – 20 % target IRR | Agribusiness operators, landowners |
Stakeholder Benefits
- Producers: Diversified income stream and improved soil fertility, often leading to yield stability.
- Local Communities: Enhanced water retention, biodiversity gains, and employment opportunities.
- Credit Purchasers: Access to removal credits with documented co-benefits and transparent provenance.
- Investors: Exposure to agriculture-linked assets with demonstrable environmental performance.
Engagement
Stakeholders contemplating an Agricultural Land Management initiative are invited to connect with our specialists. We welcome the opportunity to discuss feasibility assessments, financing structures, and long-term project governance.
This document is provided solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service.
