South African farmers practising regenerative agriculture can now earn extra income through the country’s first internationally recognised carbon offset programme for the agricultural sector.

The gradual shift towards regenerative agriculture across South Africa received much-needed support this week when carbon management company Climate Neutral Group (CNG) successfully listed the AgriCarbon Programme under the internationally recognised Verra Carbon Standard. This is the first project in the world to be approved for Verra Pipeline Listing using the new Verra carbon methodology “VM0042: Improved Agricultural Land Management”. 

For most farmers, the transition to regenerative agriculture has been driven by increasing input costs and declining soil quality. It has also been a response to drought conditions. Now there are also direct financial benefits available to regenerative farmers in the form of carbon credit revenue. 

“Any farmer who is currently using or planning to carry out regenerative practices on their farm and is able to submit soil data to us every year can participate in the AgriCarbon Programme,” says Mr Nyasha Shumbayarerwa, Agriculture Project Coordinator at CNG.

Mr Gray Maguire, Project Manager at CNG, confirms: “The priority right now is to enrol regenerative famers with existing soil data to make sure that these early adopters get to maximise their benefit for being pioneers in the sector.”

HOW IT WORKS

The AgriCarbon Programme, run by CNG, works by providing famers with an additional source of income by helping them certify and sell highly sought-after agricultural carbon credits. CNG determines the amount of carbon credits generated on a farm via the received soil data, which is then submitted to the carbon auditor and, finally, to the Verra Carbon Standard. Including multiple farms under the AgriCarbon Programme substantially reduces carbon development and auditing costs per farm, thereby maximising income to the farmers.

By joining the programme, farmers avoid the complexity and high-cost barriers of certifying carbon credits themselves, so they can focus on the health of their soil and business. 

Mr. Franz Rentel, Country Director of CNG South Africa, says: “Companies in South Africa and across the world are committing to net-zero carbon emissions and are searching for carbon credits of the highest quality. They’re turning to agriculture to purchase credits that support farmers in transitioning toward farming practices that remove carbon from the atmosphere and enrich the soil. Climate Neutral Group, together with its partners, has the support, technology and finance to enable farmers to generate high-quality carbon credits that companies want to buy.” 

Farmers have until 30 September 2021 to maximise their carbon credit income for accumulating carbon in their soil over the past five years and will receive their first payment as soon as 2022. (For full details visit https://climateneutralgroup.co.za/agricarbon/)

ABOUT CLIMATE NEUTRAL GROUP

Climate Neutral Group (CNG) is dedicated to combating climate change and supports companies on their journey to net-zero emissions by 2050, in line with the Paris Agreement. Its team of experts supports more than 3 000 companies globally and, as a result, has offset more than 10 million tonnes of CO₂ and improved quality of life for millions of people around the world. CNG was founded in 2002 by Triodos Bank and DOEN Participaties. Today, CNG is active globally. The company has been a founding partner and member of The International Carbon Reduction and Offset Alliance (ICROA) since 2008, B-Corp-certified since 2015 and an ISEAL subscriber since 2019.

For more information e-mail: info@climateneutralgroup.co.za or visit https://climateneutralgroup.co.za/

WHAT’S THE BEST ADVICE YOU’VE EVER BEEN GIVEN?

Prepare everything on time and try to predict what may happen. Take calculated risks; not taking a risk is just another type of risk.

WHAT WOULD YOU HAVE DONE DIFFERENTLY, IF YOU COULD?

Last year I should have taken more risk by increasing my planting area as there was more than enough rain and the yields were incredibly good. Also, when I started livestock farming, I should have included goats in the operation. They are a good investment.

WHAT HAS BEEN YOUR BIGGEST SUCCESS TO DATE?

Acquiring a third farm and being able to expand my operation must be my biggest achievement to date.

WHO HAS MADE THE BIGGEST CONTRIBUTION TO YOUR SUCCESS SO FAR?

My parents and grandparents, and my partner and soulmate.

WHAT KIND OF RELATIONSHIP DO YOU HAVE WITH YOUR NEIGHBOURS, AND WHAT ROLE DO THEY PLAY IN YOUR BUSINESS?

I get on very well with my neighbours and have an excellent relationship with them. We help one another all the time and occasionally we meet up and have braais.

WAS IT A STRUGGLE TO SECURE FINANCING? WHAT ADVICE WOULD YOU OFFER OTHER EMERGING FARMERS IN NEED OF FUNDING?

It was and still is a struggle to get financing. We are seen as high risk by commercial banks, who shy away from helping us. My advice would be to take care of your business and ensure you keep good records – this is where investors look first when they are thinking of investing in your business.

WHAT ROLE DO INPUT SUPPLIERS SUCH AS ANIMAL-HEALTH COMPANIES PLAY IN YOUR BUSINESS?

They have been playing a vital role in the company, with some really invaluable advice and great after service. They make a big contribution.

IF YOU COULD GIVE THE MINISTER OF AGRICULTURE SOME ADVICE, WHAT WOULD IT BE?

I’d say, come closer to us on the ground and learn about our challenges and successes. That way you’ll know how best to assist us.

Le 17 juin 2021, le FAWE Zanzibar a organisé une cérémonie de remise de prix pour les meilleurs étudiants stagiaires dans le cadre d’un concours sur le commerce des algues récemment conclu. Les étudiants se sont regroupés en au moins 25 personnes chacune pour former huit groupes. La compétition était basée sur la formation des groupes, le plan d’affaires, la stratégie de durabilité et les compétences de présentation. La concurrence était si rude que chaque concurrent a obtenu plus de 70%. Les huit groupes avaient chacun un nom de groupe, les plans d’affaires étaient en place et bien définis, quatre plans stratégiques bien rédigés et les compétences de présentation étaient de 100%. Surprise, les huit groupes ont présenté des produits à valeur ajoutée à base d’algues : confiture, huile de massage, huile capillaire, gommage corporel, gâteaux, savon de lavage en barre, savon liquide, savon de bain, algues brutes, algues sèches, baume contre la douleur, lotion, produits par eux-mêmes.

Le concours était ouvert aux 200 étudiants recrutés et formés à la pratique et à la théorie des algues à Unguja au cours des trois dernières années dans les cohortes 1 et 2 de l’EFTP par le biais du FAWE Zanzibar.

Légende : Les étudiants récompensés (rangée arrière) et les officiels (rangée avant) posent pour une photo lors de la cérémonie de remise des prix à Unguja, Zanzibar.

When Nkosana Mtambo received a small farm from his grandfather on his 21st birthday, it was the perfect coming-of-age gift, says Lindiwe Sithole, host of African Farming Season 2. Mtambo has since changed from a city boy to a farm boy, proving that he is truly passionate about farming.

When Sithole visits Nkosana Mtambo on his Free State farm, it is clear that farming is his life. He lives and breathes to make his farm a success. “I am so grateful for all the lessons my grandfather thought me from a young age, and I believe the success of agriculture lies in the youth’s understanding of how agriculture works,” he says. 

Farmers who are passionate about their businesses want to see them grow, but the path to success is riddled with challenges. If a farmer grows their business too fast or go into too much debt to do so, expanding can be their downfall. 

Keneilwe Nailana, Manager: Agribusiness at Standard Bank Group, says it takes a lot of work and planning to grow a business successfully. Funding is one of the key aspects of taking your business into the next phase. Different businesses need funding at different stages in a business cycle. 

According to Nailana, the business cycle stage in which a business is will determine the type of funding necessary to move forward. “The business cycle stages are the start-up cycle, the growth stage, the maturity stage and the decline stage.” She says finding financial solutions for a business in each of these cycles entails finding a mix of financial solutions, like cash, debt and equity. 

“To fund start-ups is usually the most difficult – these are usually funded out of pocket, but when you reach the second cycle and the business has financial statements, market access and so forth, the chances of having a multiple stream of funding are more realistic.” 

She cautions that farmers should never rely on debt alone as a solution. “Debt has to be used with caution; it should also be productive debt. The best solution is to find a variety of ways to fund a project, and in the end make use of a healthy mix of funding solutions.”