A variety of project developers pay forest landowners to participate in voluntary carbon markets. Many developers only work with large landowners, but some programs allow smaller landowners to participate in this burgeoning market and conservation practice with as little as 30 acres of woodland. This webpage provides an overview of two forest carbon programs marketing to small-to-medium-acreage forest landowners in Wisconsin. It also offers considerations for individuals interested in participating in these or different programs, as other carbon programs are available in Wisconsin—and more will likely appear over time.
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In both programs discussed below, the landowner retains ownership of their property, recreational rights (e.g. hunting, fishing), and firewood use (within cordage limits) during the enrollment period. Managed Forest Law (MFL) lands are potentially eligible, depending on the harvesting requirements in the MFL plan. Meeting with a forester from the carbon program in addition to your MFL forester is the only way to determine compatibility. If timber harvesting is not allowed on a property, it is likely not eligible for these carbon programs.
The contents of this webpage are provided for informational purposes only. Mention of a specific carbon program does not represent an endorsement or recommendation by Extension. Carbon markets are also rapidly developing. This webpage was last updated in March 2025. Program availability, rules, and requirements may have changed since then. For the latest information, visit the program websites.
This webpage was adapted from a bulletin by the Wisconsin Initiative on Climate Change Impacts Forestry Working Group. You can download and print Bulletin #10: Forest Carbon Accounting (PDF).
Family Forest Carbon Program (FFCP)
The Family Forest Carbon Program is run by the American Forest Foundation and The Nature Conservancy. Within Wisconsin, the program is available to private landowners with property in the north and north-central regions.
What land is eligible?
To be eligible for FFCP, a landowner must have at least 30 acres in a naturally occurring, medium- to well-stocked hardwood stand (such as maple-beech-birch and/or oak-hickory). FFCP allows for partial land enrollment, meaning the landowner does NOT need to enroll all of their forested land. The landowner must have an active forest management plan. FFCP can provide financial support to either develop a forest management plan or update an existing one to incorporate forest carbon.
How does it work?
Rather than paying directly for carbon, FFCP pays Wisconsin landowners for growing mature forests with trees that are older and larger than those in other local forests. To create the carbon credits that they sell, FFCP compares the carbon stored in enrolled properties to the storage in similar unenrolled properties over time (a dynamic baseline).
FFCP contracts last 20 years and there is no extended monitoring period. A typical payment is a total of $200 per acre over the 20-year contract, which means an average of $10 per acre each year. The landowner may be eligible for a premium payment which increases base payments of $200 per acre by 20%. In return the landowner agrees to implement FFCP practices with the financial assistance of the Natural Resources Conservation Service. These payment rates do not change when prices in the voluntary carbon market change, nor do they change if the landowner chooses to harvest. FFCP allows for timber harvesting within certain basal area limits. If a harvest is conducted, the landowner must also pay a forester for pre- and post-harvest inspections.
Forest Carbon Works (FCW)
Forest Carbon Works is a public benefit corporation with offices in Minnesota, New York, and Colorado. FCW operates in the lower 48 states, including all of Wisconsin.
What land is eligible?
To be eligible, a landowner must have at least 40 acres with a naturally occurring forest type. Plantation forests of native trees are eligible. FCW accepts various forest cover types beyond those allowed in FFCP. FCW enrollment must include all of a landowner’s forested land, and a forest management plan is only required when a commercial timber sale is conducted.
How does it work?
FCW pays landowners based on the carbon dioxide removed from the atmosphere by their trees’ new growth. (Some programs, not described here, generate credits from avoiding harvesting.) Each property is assessed individually, so payments may vary from property to property.
FCW contracts consist of a 25-year payment period, followed by a 35-year monitoring period with an option to extend payment in 5-year increments. Landowners can choose a revenue-share option (where annual payments can change if the market prices of carbon credits change) or a fixed-rate option. Annual revenue-share payments are 25% of the property’s generated carbon credits, with fixed-rate payments starting at $10 per acre. FCW allows for timber harvesting by setting aside 10% of the carbon stocking in an uncredited reserve stock, determined by FCW, to allow for climate smart forestry. Greater harvest flexibility is gained after the 25-year payment period, but all harvests must be approved by FCW.
What to consider before enrolling in a carbon program
It’s important to be fully aware of the benefits and downsides of the carbon program you may be interested in. Carbon programs align well with some short- and long-term management goals, but may not with others.
Before you enroll, you should consult with a Wisconsin professional forester, who can help you navigate the forest management implications of the program. Make sure that you understand everything in the program contract before signing. Here are a few key questions you can ask a program representative:
- As the forest landowner, what are my responsibilities to manage the existing carbon?
- How will carbon stocks be monitored on my land and how often are carbon inventories performed?
- What is the payment schedule?
- How will payments change if a severe weather event or forest pest results in forest loss?
- If I want to perform a timber harvest, what are the guidelines and how do I get permission from the program?
- Are other forest management activities, like prescribed fire or invasive species removal, not allowed?
- What types of companies will buy the carbon credits associated with my forest?
- What happens if I sell or transfer ownership of my land before the end of the contract?
- What are the penalties for leaving the program before the end of the contract?
- If I have an existing conservation easement, am I eligible?
- If I am part of the Managed Forest Law (MFL) program, am I eligible?
Additional forest carbon programs may expand to Wisconsin in the coming years. Keep in mind that participation in a program now could make your land ineligible for future programs. If FFCP and FCW don’t align with your forest management objectives, maybe another future program will.
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If you have questions about forest carbon or other topics related to the changing climate, or if you want to provide feedback on this webpage, contact:
Keith Phelps
Working Lands Forestry Educator
keith.phelps@wisc.edu
920-840-7504
Scott Hershberger
Forestry Communications Specialist
scott.hershberger@wisc.edu
Page last updated March 2025.