Natural Capital Program Consideration Pocket Guide
Max Nova
Max Nova
11 December, 2024 min read

There are hundreds of natural capital programs available to landowners, but they can be hard to understand and compare. Whether you are considering cost-share programs administered by the USDA or private carbon, conservation, harvest, or development opportunities, there are a number of key questions landowners should know the answer to before enrolling.

NCX provides the highest level of transparency to help landowners make informed decisions about what’s right for their land. We’ve created the “cheat sheet” below for landowners to use when assessing programs for their land. These questions can be used in the initial stages of reviewing program options all the way through to contract negotiations with developers.

Key Obligations:

  • What do I have to do or allow to happen on my land?
  • Who is responsible for setting up the project on the land? Do I have input on how it is set up?
  • Who is responsible for ongoing maintenance, if required?
  • Do I have to enroll my entire property? 
  • If there is physical equipment on site (like solar panels), who is responsible for returning the site to its original condition after the contract period?

Term Length:

  • How long do the obligations last under the contract? Are there different obligations for different phases of the contract?
  • How does this program affect my property beyond the contract period? (ex: Do I have to maintain a certain level of carbon storage even after the payment period is over?)
  • How might this contract affect my land’s value if I have to sell during or after the contract period?
  • What happens if the program developer goes out of business?

Landowner Cost:

  • Are there up-front costs? What do they cover?
  • Are there ways these costs can be offset or avoided?
  • Are there other additional costs throughout the contract period?
  • If costs are reimbursed, how quickly will I be reimbursed and what does that process look like?

Earnings & Penalties:

  • What is the payment structure (per acre lease, revenue share, lump sum)?
  • If a revenue share, what percentage of revenue am I receiving?
  • What is the payment timing? When are my first and last payments?
  • Are there contingencies or are my payments guaranteed?
  • Do the payments increase over time to account for inflation?
  • Do I have the option to change the payment structure throughout the contract?

Restrictions:

  • How does the program change my current management of the property? 
  • Can I continue to hunt the property as I have done in the past?
  • Does the program conflict with any other pre-existing obligations, plans, or contracts I have in place?
  • Can I harvest timber throughout the contract period (commercially, for forest health, for firewood)? What volume restrictions would I have to abide by?

Rights:

  • Which rights am I leasing or selling (carbon, timber, etc)?
  • How long are my rights leased or sold?
  • What happens if I want to sell the property? 

It can be overwhelming to determine which program is right for you and how to stack them to maximize returns. At NCX, our team of experts can help you design a customized plan that tells you exactly which programs are right for you, when to enroll, and what to watch out for. Get started by creating an account

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about the author

Max Nova

Max Nova

CEO
Max Nova is the CEO of NCX (the Natural Capital Exchange). NCX's mission is to create fair and honest natural capital markets so that millions of Americans can prosper from the carbon, water, wildlife, timber, and other values their land provides. Born and raised in Louisville, Kentucky, Max earned a degree in computer science from Yale.