Farmers Edge CCP Project #1 Alberta Offset System Offset Project Plan 2015 Crop Contents 1) Project Scope and Site Description ................................................................................. 3 2) Contact Information ....................................................................................................... 6 3) Other Project Information .............................................................................................. 7 3.1 Description of how the project will achieve GHG emission reductions ........... 7 3.2 Conditions prior to project initiation ................................................................ 7 3.3 Project Eligibility ............................................................................................... 8 3.4 Project technologies, products, services and the expected level of activity . 10 3.5 Identification of risks ...................................................................................... 11 4) Identification of sources and sinks ............................................................................... 13 4.1 Baseline Condition .......................................................................................... 13 4.1 Project Sources and Sinks ............................................................................... 15 5) Identification of the Project Condition ......................................................................... 18 6) Quantification Plan ....................................................................................................... 20 6.1 Quantification Approach & Methodology ...................................................... 20 6.2 Parameters & Procedures .............................................................................. 21 7) Monitoring Plan ............................................................................................................ 25 8) Data Management System and Records ...................................................................... 27 8.1 Record Keeping ............................................................................................... 27 Project Developer Signature ............................................................................................. 33 Farmers Edge CCP Project #1 Page 2 of 33 Offset Project Plan for Farmers Edge Conservation Cropping Protocol Project #1 Project Developer: Farmers Edge Inc. Date: December 2015 1) Project Scope and Site Description Project Title: Farmers Edge CCP Project #1 Project Purpose and Objective(s): This Farmers Edge agricultural offset aggregation project will use the Alberta Quantification Protocol for Conservation Cropping (CPP) to develop and aggregate carbon offsets from Alberta farmers. Starting in 2015 we will help customers complete comprehensive crop plans every year, helping to manage their zero-tillage (no till) program and build the organic matter in the soil sequestering carbon dioxide. Project Start Date: 2014-09-01 Credit Start Date: 2015-01-01 Credit Duration Period: 2015-01-01 to 2021-12-31 Expected Lifetime of the Project: This CCP aggregation project will run annually with Farmers Edge customers for the duration allowed under the protocol to December 31, 2021. Estimated Emission This Project will target 50,000 tonnes CO2e annually to Reductions/Removals: aggregate from the Farmers Edge customer base in Alberta. Applicable Quantification Protocol(s): Alberta Quantification Protocol for Conservation Cropping (Version 1.0) April 2012 (CCP). Protocol(s) Justification: The Quantification Protocol for Conservation Cropping (Version 1.0) April 2012 (CCP) is at the core of this Project. The project consists of the aggregation of carbon offsets generated through Farmers Edge CCP Project #1 Page 3 of 33 the use of no till practices. These offsets result from the direct and indirect reduction of greenhouse gas emissions under no till. These tillage practices are not required by law in Alberta and are done on a voluntary basis by Alberta farmers and are therefore additional. Other Environmental Attributes: This project is not expected to generate additional environmental benefits. Legal Land Description of the Project and/or Other Unique Site Descriptions: This is an aggregated project of CCP offsets from Alberta farmers that are customers of Farmers Edge Inc. These customers are located across Alberta from the north Peace River area to southern Alberta. Ownership: The project is 100% owned and operated by Farmers Edge Inc. Farmers Edge uses an agent contract model and discounts its customer selected agronomic services for the estimated value of the carbon offsets on the farm. A pre-qualification checklist is used by Farmers Edge Agronomists to ensure there is a high likelihood the protocol parameters can be met before enrolling the farm as a sub-project. Farmers Edge will provide a list of all participating land locations (properties) in a spatial locator template when the carbon offsets are registered. All participating farms (sub-projects) sign an emissions credit assignment agreement with Farmers Edge. If the farms have rental land they must provide a landlord/tenant agreement showing assignment of carbon offsets to the farming tenant. Both documents are stored in our data management system. Reporting and Verification Details: CCP emissions reduction generated in 2015 will be summarized in a report to Dec 31, 2015. They will be verified by an experienced independent verification team from ICF Canada for 2015. Annual verifications will occur for the life of the project with an independent third party verifier that meets the Specified Gas Emitters Regulation. The Technical Guidance for Offset Project Developers (Version 4.0, Feb 2013) will guide the verification of the project. Farmers Edge CCP Project #1 Page 4 of 33 A pre-verification by an independent third party occurred midyear 2015 to ensure all database development and collection processes were aligned with the CCP. We will not consider any potential Summerfallow Reduction Projects as part of this project. Project Activity: All the project activity occurs with Farmers Edge customers with land located only in Alberta. The Conservation Cropping practices applied are not required by law and are beyond business-as-usual and agricultural common practices. As this Project Plan demonstrates, the reductions generated will be real, demonstrable, quantifiable and verifiable. They are the result of actions taken after January 1, 2002 and will have clearly established ownership. Credits generated will only be counted once for compliance purposes and the project is not registered under any other offset schemes. Project Registration: This project will only be registered the Alberta Emissions Offset Registry. Other: This project has been planned using the Technical Guidance for Offset Project Developers (Version 4.0 February 2013) document developed for the Specified Gas Emitters Regulation. The project complies with the Alberta Quantification Protocol for Conservation Cropping (Version 1.0) April 2012. Farmers Edge CCP Project #1 Page 5 of 33 2) Contact Information Project Developer Contact Information Farmers Edge Inc. Doug Cornell, Carbon Project Manager (Located in Airdrie, Alberta) Head Office location: Enter the names of the other contacts for the project developer. Patrick Crampton, Chief Product Officer [email protected] 1470 Willson Place, Unit B Winnipeg Manitoba R3T 3N9 Canada Dan Heaney, VP Research & Development 587-585-5199 [email protected] www.farmersedge.ca [email protected] Authorized Project Contact1 Not Applicable (This is a contact that has been given the authority to act on behalf of the project developer.) 1 The authorized project contact is the contact person for the project. AESRD and the Alberta Emissions Offset Registry will contact this person for any project specific questions, including government audit. Farmers Edge CCP Project #1 Page 6 of 33 3) Other Project Information 3.1 Description of how the project will achieve GHG emission reductions In Alberta, as current or new customers of Farmers Edge plan for their next crop, Farmers Edge Agronomists, Precision Agronomists and Precision Technicians consult with them on their cropping plans. As part of this agronomic planning process, seeding and fertilizing decisions are made with respect to products used, placement and timing of applications. During this consulting phase, the farm’s machinery and tillage practices are assessed. If they meet the CCP requirements for no till, the farm becomes prequalified for inclusion to our CCP project as a sub-project (farm). The pre-qualified farms then complete their annual cropping with seeding and fertilizing machinery designed to minimize soil disturbance (no till). Shifting from conventional farming to conservation cropping can increase carbon sequestered in the soil. This results in reduced carbon dioxide (CO2) emissions to the atmosphere and lower nitrous oxide (N2O) emissions resulting from less soil disturbance. Fewer passes on a farm field reduces fossil fuel emissions from farm equipment further helping to lower greenhouse gas footprint for the farm. The CCP protocol specifically quantifies greenhouse gas emissions reductions from the following three activities: New carbon stored annually in agricultural soil; Lower nitrous oxide emissions from soils under no till management; and Associated emission reductions from reduced fossil fuel use from fewer passes per farm field. Throughout the year, Farmers Edge collects all protocol required records and data and securely stores them in a GIS enabled database. From the records in that database a greenhouse gas reduction is calculated for each sub-project (farm). Each sub-project boundary is each farm’s land locations. The farms are from across Alberta. All the subprojects (farms) CCP calculated CO2e offsets are aggregated together for this project. 3.2 Conditions prior to project initiation The conditions on each farm prior to project initiation vary somewhat due to different agro-climatic zones, different machinery and different crop choices & rotations. However, all farmers are interested in minimizing their impact on the environment and reducing expenses. Done properly, no till seed and fertilizer practices can accomplish both. Many farms still require coaching to not resort to tillage practices for weed control and trash (straw) management. Farmers Edge CCP Project #1 Page 7 of 33 The CCP uses a performance standard baseline methodology to quantify GHG emission reductions resulting from conservation cropping management practices. This means that sector level performance based on 2006 Census data was used to establish a sector level baseline for Alberta based on best practices for the sector and known levels of adoption of reduced and no till agriculture within Alberta Ecozones. 3.3 Project Eligibility This project meets the requirements as outlined in the Alberta Quantification Protocol for Conservation Cropping (Version 1.0) April 2012 (CCP). The applicability criteria were determined using the CCP and the Technical Guidance for Offset Project Developers (Version 4.0, February 2014) including identification of sources and sinks, and quantification methodologies. Table 1 describes how the protocol criteria are met. Protocol Criteria How The Criteria Are Met Farms must be within Alberta. Every farm field is recorded by digitized border within a GIS data management system with a “Google Earth” like aerial photo interface. The system supplies Legal Land Description (LLD) and lat/long coordinates. Farms must be producing annual crops. Farmers Edge crop planning process captures crop type for every field. This is confirmed with AFSC Crop Insurance reports. Farms must be practicing no till farming within Alberta. No till machinery is photographed and measured. A soil disturbance calculation is then done for every soil opener. Soil disturbance events exceeding the limit must be captured and reported. Farmers Edge CanPlug telematics devices capture seeding, fertilizing and tillage operations data directly to database. This information is also collected by Technicians from in-cab monitors as a back-up. Agronomists discuss field events with farmer and confirm any discretionary tillage events. Farmers Edge CCP Project #1 Page 8 of 33 Clear legal ownership of the GHG emission reductions must be established. A Farmers Edge Emissions Credits Agreement is signed with every participating farm customer. A land title certificate will be accessed and a copy retained for all LLD’s for each farm’s owned lands as proof of ownership. A copy of the landlord/tenant lease agreement for each farm’s rented lands will be copied and retained. If the lease does not assign the carbon rights to the tenant (farmer), a Carbon Assignment Agreement will be requested between the landlord and tenant assigning the carbon rights to the tenant (farmer). A copy of that agreement will be retained. Additional farm management operations involving tillage must be documented and recorded, including irrigation status, reseeding and manure incorporation. Irrigated crops (fields) will be indicated as such. Ecozone must be indicated. Every field will be assessed using our GIS data management system for location in Parkland or Dryland zone. Fields bisected by the border will use the more conservative Dryland zone parameters. The project must meet the eligibility criteria stated in section 7.0 of the Specified Gas Emitters Regulation. In order to qualify, emissions reductions must: This project meets the eligibility criteria stated in section 7.0 of the Specified Gas Emitters Regulation. Farmers Edge CCP Project #1 Farmers Edge CanPlug telematics devices capture seeding, fertilizing and tillage operations data directly to database. This information is also collected by Technicians from in-cab monitors as a back-up. Agronomists discuss and confirm with farmer any other field operations which may affect CCP. • All farm fields will be in Alberta and their Land Title will assure this. Page 9 of 33 • Occur in Alberta; • Result from actions not otherwise required by law; • Result from actions taken on or after January 1, 2002; • Actions measured for emission reductions are not required by law. • All actions have or will occur after January 1, 2012. • All emission reductions for this project: • Be real, demonstrable and quantifiable; - • Have clearly established ownership including, if applicable, appropriate, documented transfers of carbon ownership from the land owner to land lessee; Are real, demonstrable and quantifiable because they are based on the CCP as described in this plan; - Will have clearly demonstrated ownership; - Will only be counted once. • Be counted once for compliance; and • Be implemented according to ministerial guidelines. 3.4 The project will be implemented according to ministerial guidelines. Project technologies, products, services and the expected level of activity Farmers Edge agronomic consulting helps bring our customers tillage practices under control and monitoring by planning their seeding and fertilizing operations. These practices are then monitored by our agronomic professionals including Certified Crop Advisors (CCA), Professional Agrologists (P.Ag.) and Accredited Professional Advisors (APA). The farmers involved in this CCP project are customers of Farmers Edge advanced precision farming services. These services include: Variable rate fertilizer planning and prescription preparation for application machinery Single rate per field prescription preparation for application machinery Telematics based “over the air” collection of machinery application and timing data by our CanPlug system Zone planning and soil testing by zone and by field Processed & raw satellite imagery and on-farm weather stations for advanced agronomic decision making. All these tools are used by our agronomic and precision technology advisors, in consultation with the farmer, to plan the cropping strategies that meet or exceed CCP Farmers Edge CCP Project #1 Page 10 of 33 parameters. All protocol required records and data are collected and securely stored in a GIS enabled database (Carbon System). Farmers Edge CanPlug technology, backed up by in-cab monitor data collection, forms the basis of tracking the number of passes with low disturbance openers and any discretionary tillage. Tillage events can be tracked and measured in our data management system with the tractor GPS data for in-field activity. The machinery operational data is confirmed by our Agronomists with the farmer. This is done because the tillage event could be a harrow or packer or other minimal soil disturbing field operation. All soil disturbing events are tracked, recorded and reported on. 3.5 Identification of risks Consideration of risk factors unique to this project needs to include: data collection challenges in the agricultural industry; data management, storing and processing factors; regulatory changes or misinterpretation challenges. Data Collection Data collection challenges have always existed in the agriculture industry because agriculture, at the production point, is based on biological systems in an uncontrolled outdoor environment. Those who own the production assets, farmers, are usually owner-operator businesses that are family run. Quite often they are incorporated but are still small family businesses with few to no employees. Despite the internet revolution, the data infrastructure across the agricultural land mass is still weak, especially further from major urban centers and major transportation corridors. Cellular service can be non-existent or weak at best and high speed internet connections are still entry level in some areas. With this in mind, automated data collection systems must be very well designed to survive off-grid momentarily or extensively and still retain the crucial data collected. However, there is a “big data” revolution occurring in the agricultural industry as the sensor, computer and GPS systems coalesce. Farmers Edge has invested significantly in data collection automation with machinerybased telematics devices and processes to ensure useful data is collected for agronomic decision making, and will continue to do so. The same data required for this agronomic decision making is also required for carbon emissions offset calculations. The other area of data collection challenges are the human factors. Copies of signed contracts and external data documents need to be collected by Farmers Edge staff. Extensive staff training has been done at Farmers Edge through process training sessions, mentoring, webinars, phone calls, emails plus instruction and process documentation. This training is supplemented with a thorough review process of data Farmers Edge CCP Project #1 Page 11 of 33 collection entered in our Carbon System before the information is used to calculate GHG emission reductions. Data Management The risks associated with data management systems are quite well known. Data redundancy (back-up), non-registered access, system design and ease of use are all worth noting as potential issues. Farmers Edge has a large dedicated computer software engineering team who built our Carbon System as a subset of our larger big data management environment so all these risks are addressed for carbon projects in Alberta and around the world. Authentication protocols and processes are in place to reduce unauthorized access risk. Regulatory Change This CCP project will be among many conservation cropping projects done in Alberta. Although based on very solid agricultural science, the science of greenhouse gas quantification is still evolving and may evolve more to meet the needs and standards of the agricultural industry. While the actual emissions offsets are not in question, the documentation standards and requirements may still evolve. Beyond the protocol level, the Alberta regulatory environment has just changed dramatically with a new government, but the offset system did stay intact. This CCP project can run for seven years with no extension. Governments and potentially the regulations may change in the future. Farmers Edge CCP Project #1 Page 12 of 33 4) Identification of sources and sinks 4.1 Baseline Condition For projects applying the Alberta Quantification Protocol for Conservation Cropping projects the approach is a performance standard baseline. The emission coefficients were set based on no till adoption levels reported in the 2006 Statistics Canada Census of Agriculture and the emission reduction contribution of those practices in Alberta Ecozones. This baseline already discounts the pre-2006 minimum tillage adoption of practices and is considered static for the current crediting period. This adjusted baseline approach accounts for prior conditions and prior carbon reductions which includes conventional tillage and some zero-tillage. Therefore, previous on farm tillage practices of Farmers Edge customers participating in this project do not have to be accounted for in an individual baseline. After implementation of the current protocol, no till management practices were employed on the participating farms. Figure 1 below shows the Baseline Sources and Sinks and their status as Related, Controlled or Affected. Figure 1 Farmers Edge CCP Project #1 Page 13 of 33 Descriptions of each of the sources and/or sinks and their classification as controlled, related or affected are provided in Table 4 from the protocol below. Farmers Edge CCP Project #1 Page 14 of 33 4.1 Project Sources and Sinks Sources and sinks are determined to be either controlled, related or affected by the project and are defined as follows: Controlled The behaviour or operation of a controlled source and/or sink is under the direction and influence of a project developer through financial, policy, management or other instruments. Related A related source and/or sink has material and/or energy flows into, out of, or within a project but is not under the reasonable control of the project developer. Affected An affected source and/or sink is influenced by the project activity through changes in market demand or supply for projects or services associated with the project. Farmers Edge CCP Project #1 Page 15 of 33 This project follows the Conservation Cropping Protocol sources and sinks without deviation. Figure 2 below shows the Project Sources and Sinks diagrammatically. Figure 2 The Project Sources and Sinks are shown as Controlled, Related or Affected in Table 5 from the protocol below. Farmers Edge CCP Project #1 Page 16 of 33 Farmers Edge CCP Project #1 Page 17 of 33 5) Identification of the Project Condition For the purposes of quantifying GHG reductions, tillage is defined as a mechanical disturbance of the soil to modify soil conditions for seeding, managing crop residues, weed control, and/or incorporating chemicals/manure for crop production. Reduced till and no till systems, known as conservation tillage systems, vary in their degree of soil disturbance and number of passes of farm machinery. While both practices are used in farming operations in Alberta, the scope of this project is limited to no till cropping systems, as described in the protocol. The project condition for tillage system management is the use of no till systems as defined in Table 1 from the protocol, below, which results in reduced disturbance of the soil, reduced soil organic carbon decomposition and loss of terrestrial carbon stores relative to conventional tillage systems (i.e.: the baseline condition). No till systems also result in a reduction in the fossil fuel emissions from fuel consumed in conventional, fulltill farming operations. In the case of the drier soils (i.e. Dry Prairie soils), there is also a reduction in nitrous oxide emissions from agricultural soils under no till relative to fulltill farming, which have been included in the coefficients provided in the protocol. Farm operators participating Farmers Edge CCP project must demonstrate each year that they are planting annual crops and managing their fields according to the requirements specified in this protocol. Farmers Edge CCP Project #1 Page 18 of 33 Farmers Edge CCP Project #1 Page 19 of 33 6) Quantification Plan 6.1 Quantification Approach & Methodology Quantification of the reductions, removals and reversals of relevant sources and sinks for the greenhouse gases will be completed using the methodologies outlined in the Conservation Cropping Protocol. This project will not consider the summerfallow reduction flexibility mechanism for any participating farms. Coefficients for Tillage System Management Table 11 below (from the protocol) provides a summary of raw coefficients associated with tillage change between No Till (NT), Reduced Till (RT) and Full Till (FT) management where positive signs represent emission removals from increased soil organic carbon sequestration and reduced N20. (adapted from Haak, 2006.). Farmers Edge CCP Project #1 Page 20 of 33 Below, in Table 12 from the protocol, are baseline adjusted emission factors for 2012 through 2021 (inclusive) for No Till (NT) management using 2006 Census adoption levels on cropped land area by region in Alberta. 6.2 Parameters & Procedures In cases where a field is bisected by an Ecozone boundary, where there is not a natural field division alternative to allow splitting of the field boundary into distinct fields in each Ecozone, the Ecozone with the more conservative emission reduction estimate will be used. Figure 3 below shows the Ecozone boundary line. Farmers Edge CCP Project #1 Page 21 of 33 Figure 3 Reductions and removals of greenhouse gases achieved through conservation cropping projects must be quantified according to the methodologies outlined in Table 7 from the protocol below. Farmers Edge CCP Project #1 Page 22 of 33 Sample Calculation Here is a sample calculation from the protocol. Farmers Edge CCP Project #1 Page 23 of 33 Note: Although significant digits are defined by the raw coefficients throughout the calculations, final results must be rounded to two significant digits consistent with the soil organic carbon coefficients. Farmers Edge CCP Project #1 Page 24 of 33 7) Monitoring Plan The Monitoring Plan for Farmers Edge CCP Project #1 integrates very well with Farmers Edge regular customer procedures for agronomic consulting. Data collection for monitoring purposes follows Farmers Edge processes and data systems already available. Customer facing staff ensure data collection processes are executed and tracked in Farmers Edge data systems. The Carbon System at Farmers Edge is integrated as part of the parent FarmCommand data management system. Field staff who work directly with customers, which includes Account Managers (sales), Agronomists, Precision Agronomists and Administrators, each has a unique, secure logon to the Carbon System. All additions and changes to data in the Carbon System are logged by person so all data and documents can be tracked back to the staff who handled it. Also, many Farmers Edge Agronomists, Precision Agronomists and Account Managers are Professional Agrologists (P.Ag.) and their designations are noted in our Carbon System for CCP review purposes. Customer Farm data is input into the Carbon System at two levels, Farm or Field. Farm Level documents such as signed contracts, Crop Insurance documents, and lease agreements are collected during the annual customer sign-up or renewal process, scanned to pdf format and uploaded to the Carbon System. The initial crop plan is entered for each field, defined by Legal Land Descriptions (LLD), into our contracting sub-system. This forms the basis of our customer tracking system throughout FarmCommand and the Carbon System. Field Level data gets monitored by the Agronomists and Precision Agronomists and then entered or uploaded. This includes Field specific details not available electronically. Most Field Level data is “monitored” or collected electronically using Farmers Edge proprietary system, the CanPlug. The CanPlug system is a telematics based data gathering device supplied for our customer’s tractors, combines and sprayers. The CanPlugs monitor the machinery data systems, harvest the GPS encoded data from the in-cab and attached machinery controllers (computers) and sends the data over cell networks to our cloud database. This data is processed and becomes available information in the FarmCommand system including the Carbon System. As a backup to this system, controller data is collected by our Precision Agronomists & Technicians from the in-cab controllers and then uploaded to FarmCommand. The electronically collected data includes much of the crucial information for detailed agronomic consulting and CCP GHG calculations. Information tracked includes tillage activity from As Applied fertilizing, application dates, the machinery involved and the location of each event in all zones of every field. Monitoring for CCP specifically happens through our consulting process with farm customers: The initial crop plan is prepared in consultation with the farmer. Agronomists prepare fertility recommendations before and through seeding. Farmers Edge CCP Project #1 Page 25 of 33 As Applied activity is gathered electronically during seeding by CanPlug and directly immediately post-seeding by the Precision Agronomists and Technicians. After spring seeding the crop plan is reviewed by an Agronomist at the Field Level. Any discrepancies or missing information is addressed with the Farmer. Any electronic gathering or processing issues are addressed with the data management development team and field staff. It should be noted that pre-seeding and pre-harvest farm visits are done by Precision Agronomists to supply the machinery ready data files for fertility and other prescriptions and to ensure the CanPlugs and other machine data systems are operational. A final post-harvest review is done by an Agronomist at Field & Farm Level to ensure each Field will qualify for CCP inclusion and that all Field & Farm Level documentation is in place for the GHG calculation and eventual assertion. Farmers Edge CCP Project #1 Page 26 of 33 8) Data Management System and Records 8.1 Record Keeping Farmers Edge’s main businesses of variable rate fertilizer planning and agronomic consulting with farmers already had it deeply in involved in farm data record keeping well before becoming an aggregator. The business of effective variable rate planning for fertilizer requires collection, creation, processing and storage of the “big data” relating to every acre annually cropped on our customers farms. Some of these data streams include: Farm and farmer contact information Detailed farm machinery parameters Land locations, actual farmed area (digitized borders), aerial imagery, processed satellite imagery Detailed soil information including current soil test data on macro and micro nutrients at the field level (composite) or zone level (sub-field) from sampling done by Farmers Edge Technicians and Agronomists. The soil samples are processed at Farmers Edge own soil testing lab. Planned crops, previous crops, projected yields and yield measurements Combine yield and moisture monitor records Applied fertilizer rates by zone or by field (As Applied machinery data), seeded crop area, weeds & pests and applied pesticides. All this is digitized GPS encoded data. Weather station data from Farmers Edge automated weather stations placed at each customer’s farm. This information is then used to develop a prescription for fertilizer application by zone or field for the entire farm (and potentially variable rate prescriptions for other crop inputs). These electronic prescription files are loaded into the application machinery controllers for every field. The additional information collected that is required for CCP includes: Land and carbon rights ownership documents Crop insurance records Crop advisor qualifications. As we sign-up our customers they choose a level of precision farming planning service. The levels of service for 2015 are: Farmers Edge CCP Project #1 Page 27 of 33 Smart Solutions, our base service package contains the on-farm data solutions, and also provides a Carbon Offset Credit (service price reduction per acre) for Alberta farms which will qualify for the CCP. Other services in this package include: o Digital bordering of all fields o As Applied crop input maps, Precision Health maps and Precision Harvest maps o CanPlugs for the main tractor(s), combine(s) and sprayer(s) o FarmCommand software access o On-Farm Weather Station o Access to Tech and Agronomic support services. In addition, farmers then choose additional services that suit their agronomic management profile from these solutions: Farmers Edge Ultra Carbon VR solution which provides fertility recommendations based on whole farm zoned soil sampling the first year, and then Virtual Soil Testing blended with check sampling, alternating portions of the farm annually. Farmers Edge Platinum solution which provides field zoning and then variable rate fertility planning based on whole farm zoned soil sampling. Farmers Edge Nutrient Management solution which provides fertility recommendations based on composite soil sampling by field. All Farmers Edge data is maintained in secured databases that are backed up off-site. The main GIS interface is through our proprietary software FarmCommand. A separate instance of FarmCommand for GHG emission protocols, the Carbon System, is maintained for staff and farmer use. Verifiers and Auditors will be given read-only access to one crop year of the database for their tasks when necessary. Each CCP defined crop year will be stored, in its entirety, for the life of the project as per protocol conditions. All Farm and Farmers Edge generated documentation for each Farm is retained in an orderly manner attached to the Field or Farm it relates to. Access to this data is through a “Google Earth” type aerial imagery view of the digitized fields (bordered fields). The CCP specific data is accessible through pop-up database menus for Farm & Field Level data. All external documents are scanned to pdf and retained in the data system attached to the Farm or Field. The details of how Farmers Edge will meet each farm data record requirement in the protocol are in the following Table 4 below, from the protocol with Farmers Edge data collection plans also explained. Farmers Edge CCP Project #1 Page 28 of 33 Table 4 outlines the records needed to support this protocol Farmers Edge is collecting. Table 4: Records Requirements & Collection Plan Record Requirement Farmers Edge Record Collection Plan Why Required 1) Ownership of the farm fields being claimed in the project • Land title certificate for each field being claimed in the project for the first year the field will be downloaded and retained; and • An annual check of land titles to determine any ownership change; and • If ownership has changed, a new land title certificate will be downloaded; and • If the farmer leases land, a signed written lease agreement between the land owner(s) and the tenant will be copied and uploaded to Farmers Edge FarmCommand system. To confirm land ownership 2) Right to transact on offset credits • Contract between Farmers Edge and farmer for the assignment of carbon rights will be signed and uploaded. This includes agreement to provide access to data needed to quantify the greenhouse gas assertion for the farm enterprise; and • Carbon Transfer Agreements between land owner(s) and the project developer. This agreement may be incorporated into the lease agreement. These documents will be copied and uploaded to FarmCommand. To confirm the right to transact on offset credits 3) Field size and location being claimed • A GPS track file from farm seeding/fertilizing equipment is available each year • A GPS shape file derived from aerial imagery (border) is developed for each field and this is “proofed” by the farmer. The border will exclude non-cropped areas (e.g. roads, gullies, wooded areas, grassed waterways, farm buildings). • satellite imagery showing the above border and exclusions will also be available for every field • Measurement of farm enterprise boundary size will be done using digital imagery from satellite data or aerial photos (fields will be bordered in FarmCommand); • An annual check of additions or removals of land title certificates under the farm enterprise boundary will be done; and • An annual check of additions or removals of land lease agreements between the farm enterprise and other parties will be done. Only area under conservation cropping is eligible for offset credits 3a) Confirmation of annual Farm Enterprise Boundary Farmers Edge CCP Project #1 Page 29 of 33 To confirm the entire farm enterprise is included in the offset project To confirm that new lands added to the farm enterprise boundary are recorded and appropriately handled according to protocol requirements 4) Ecozone protocol area classification 5) Crop type grown for each field including existence of an annual crop, or first year of seeding of a perennial crop 6) Occurrences of soil disturbance on each farm field being claimed • Legal land location(s) (Alberta Township System and GPS coordinates) of the entire farm enterprise boundary is accomplished with the FarmCommand GIS data system; and • Ecozone location(s) of all fields for each farm will be provided • EcoDistrict location(s) within the farm enterprise boundary are uploaded as digital boundaries in FarmCommand. • Farm records indicating the crop type grown for field in the project (including indication of fields that were managed under ineligible crop types such as perennial production or summerfallow for that cropping year); and • One of the following: o AFSC records, hail insurance records; or o Signed Agronomist records of field observations for each field in the project. The Agronomist must have reviewed and collected supporting farm records that confirm the types of crops/field activities for that year. These records will be maintained in a format that is readily available for verifiers to inspect. To confirm the Ecozone and the emission coefficients Entire Farm Enterprise Boundary also included in the project EcoDistrict locations also included • From the CanPlug system feeding tractor activity into FarmCommand, detailed field record sheets that specify all land disturbance activities including but not limited to seeding, manure spreading/incorporation and discretionary tillage are maintained; • Our Agronomists probe for disclosure of any discretionary tillage events on a field and calculation of area affected by the disturbance and then confirm by on the field record sheet. • If no discretionary tillage is done on a farm field, this is documented in the field record sheet. Also tracked is: • The specific equipment used, or • Supporting records to verify the accuracy of the items above. This may include sign off by a professional agrologist who has reviewed and collected supporting farm records that confirm the types of equipment used to meet protocol requirements (e.g. number of passes, shank spacing and opener width) and disturbances per field. These records must be identified in the report and maintained in a format that is readily available for verifiers to inspect. To assess soil disturbance against Requirements stated in protocol Farmers Edge CCP Project #1 Page 30 of 33 To confirm offset credits were generated from an annual or first year perennial crop 7) Seeding /fertilizer specifications used each year 8) Reseeding events if applicable 9) Use of Irrigation if applicable • A calculation of the percentage of soil disturbance based on the width of the opener and shank spacing is done in the Carbon System for every farm in the project. AND we supply: • Photo evidence with time stamp of: equipment used including: o Opener width, o Distance between shanks • Or supporting documentation for equipment used by the farm operator including equipment receipt or rental agreement, model number of the tillage equipment. Changes in equipment need to be documented and recorded is supplied. • All this information is stored in the Carbon System. • One additional low-disturbance pass is allowed for reseeding events if total disturbance remains within allowable maximums. • Equipment specifications are recorded in the Carbon System for each farm • Any reseeding is captured by CanPlug system or Agronomist and the data will indicate dates of initial and reseeding events Equipment specifications affect the amount of soil disturbance incurred during farming operations • We collect and retain in the Carbon System supporting documentation for water usage on the field by farm operator including two of the following: o Water use records; Photo evidence with GPS time stamp showing equipment used including model information; Crop insurance records noting use of irrigation; Air photo or satellite imagery showing pivots; Alberta Irrigation Program documents; Detailed farm maps showing coverage of irrigation networks over project fields including type and model numbers for equipment being used; OR • Sign off by a Professional Agrologist Irrigation increases the carbon sequestration potential of Dry Prairie soils to that of Parkland soils. This information is needed to confirm the practice Farmers Edge CCP Project #1 Page 31 of 33 Reseeding events must not exceed the soil disturbance requirements Farmers Edge CCP Data Flow Chart Farmers Edge CCP Project #1 Page 32 of 33 Project Developer Signature I am a duly authorized corporate officer of the project developer mentioned above and have personally examined and am familiar with the information submitted in this offset project plan. Based upon reasonable investigation, including my inquiry of those individuals responsible for obtaining the information, I hereby warrant that the submitted information is true, accurate and complete to the best of my knowledge and belief, and that all matters affecting the validity of the future emission reduction claim or the protocol(s) upon which it is based have been fully disclosed. I understand that any false statement made in the submitted information may result in deregistration of credits and may be punishable as a criminal offence in accordance with provincial or federal statutes. The project developer has executed this offset project plan as of the 24nd day of December, 2015. Project Title: Farmers Edge CCP Project #1 Signature: Date: Name: Title: December 24, 2015 Patrick Crampton Chief Product Officer Farmers Edge CCP Project #1 Page 33 of 33
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