Regenerative Grazing Carbon Broker

Key obligation

• Header: Integrate or increase adoption of managed grazing on land.
  • Detail 1: Implementation is split into two phases, “practice change” and “conservation”. 
  • During the “practice change” period of 10 years, you integrate or further manage grazing practices while Kateri invests in your property to increase soil organic carbon and soil health. 
  • During the “conservation” period of 20 years, you can continue to engage in practice change and receive carbon payments, or you can choose to pause practices as long as you don’t materially disturb the soil carbon (e.g. mining, major construction, or tilling for row crops). This phase helps Kateri ensure that the hard work you did to store carbon is not erased.

Landowner costs

• No cost except in cases where Virtual Fencing is being used; ranches typically purchase a transponder or other hardware.  
  • All other services are covered by Kateri (e.g., soil sampling, ranch advisory, and verification). 

Earnings and penalties

• Revenue share of 70% of the gross margin from carbon credits sold. 
  • Estimated $5-8/acre/year at today’s prices – expected to increase over time 
  • Earnings track with variability in carbon prices and land carbon capture performance. There is no cap on payments.
  • In any year Kateri does not file to issue credits, you receive a $1/acre participation fee.
  • You’ll receive payments based on realized carbon capture and all reporting costs are covered alongside Kateri’s co-investment in your infrastructure.

In the event that carbon is lost, the rancher does not pay a penalty but will receive $0 for that year.