The GIC Group
4328 Montgomery Avenue, Bethesda, MD 20814
Tel: 301-799-0840
Greetings:
GIC Group, a long-standing international agribusiness company, will be hosting a pilot program for its new ag carbon emissions futures contract on November 8. We will be laying out how its CPC (commodity plus carbon) futures contracts work and how the CPC contract will ensure premium cash and basis prices for your crops without any long-term commitment or fee on your part. GIC Group already has received an 80% positive response rate among an initial group of growers and is preparing for the listing of CPC contracts for individual crops on CBOT and international exchanges. We are pleased to collaborate with Bayer on soil carbon quantification and intensity and MyAgData on the authentication and verification of the data.
We will be seeking your comments on CPC and the minimal procedures involved for participation in the program. Unlike current private programs for curbing ag emissions, CPC is a market-driven, hands-off approach with authenticated premium valuations for emissions reductions on your crop sales. Your buyers have expressed an interest in using CPC for their procurement and trades. Their representatives will participate in focus groups hosted by GIC Group representatives.
We welcome the likelihood that USDA will introduce additional financing to deploy “climate-smart farming” practices along with other carbon reduction related initiatives. These measures would serve to increase the benefit to growers in emission reduction farm practices and their return from cash and basis sales under CPC futures contract terms.