Small Group FAQs
How do farmers who harvest their trees impact farmers who maintain them?
The farmer who cuts down trees harms the other farmers and the TIST program as a whole, as this reduces the tonnes of carbon in the inventory, so less sales, and considering the small group had received advance payments, this means the other farmers will have money deducted on sharing profit. The program credibility is lost as carbon tonnes bought by clients will no longer be there to be shown, this harms the TIST program’s image more.
Will those who harvest and replant get to share in the profits?
Yes, it is important to replace the lost carbon tonnes and getting even more from that grove area. However, this best practice is to keep the grove alive for a full 30 years, to maximize benefits to everybody.
At what point do farmers with small trees begin to share in the profits?
The farmers with small trees begin to share profits immediately when their trees are big enough, quantified, profits are sale of carbon less advanced money and cost of the small group services. Farmers share profits based on how much carbon is in their trees.
If farmers received profit share last year, are they receiving profit share this year?
The profits are shared each and every year. Each year, the profit share is from that year’s profits.
If a farmer’s trees are destroyed by landslide/fires/disease, is the rest of the farmers groves impacted for carbon payment? What if they replant?
Yes, the carbon payment is impacted, as it will reduce number of trees and in essence carbon tonnes, to replant more trees is the best practice to get back the number of trees and in essence carbon tonnes.
What is profit sharing? How is it calculated?
Sale of carbon tonnes - cost of the program = profit, so 70 % of the profit get to farmers and 30 % of the profit get to Clean Air Action Corporation finances TIST, expansion to new areas, and who helps in “Packaging” of carbon.
Therefore: Revenue minus expenses equals profits.
How do farmers qualify for the profit share?
Farmers plant trees and have them quantified to qualify for profit share. Once we make profit, the farmers get 70% of the profit and Clean Air Action Corporation (CAAC) gets 30% of the profit. Farmers continue to qualify each year if they keep their trees alive for 30 years.
How can a Small Group calculate what their share is?
Please read your voucher for information on how many tonnes you have, the amount per tonne, and the total prepayments made to your Small Group. As a small group, they discuss between themselves how to share their profit, this in itself help the farmers make their own decision in the spirit of the small group organization.
Why is the profit share important to TIST?
Profit is money made by farmers, this helps in paying off many bills like school fees, food, clothing, etc, thus it is very important to farmers. Profit share is important to Clean Air Action Corporation because it helps the program to expand to more farmers.
If a farmer harvests, can they still receive Profit Sharing? If not, why?
No, as profits are made by sale of carbon tonnes, so harvesting trees no sale is done on carbon tonnes, so no profit. Harvesting hurts the farmers who remain in the program.
Will farmers receive prepayments during lockdown?
Yes. We shall start paying farmers as soon as possible.
Who gets the remaining 30% of the profits?
Clean Air Action Corporation (CAAC), this attracts people to invest in TIST, helps to pay for the costs in developing TIST, helps pay for costs of packaging the carbon, expansion, office expenses, employee’s salaries and reimbursements, and many more other costs
Does each SG receive the same amount for profit share?
No. The amount of profit share depends on how the amount of carbon tonnes sequestered from the Small Group’s trees.
How often does the profit share occur?
The profit share will be received each and every year
If part of a grove is destroyed by natural causes does the rest qualify?
When a grove exists but hasn’t been updated can it affect the profit share? When it is updated are the tonnes lost in the meantime?
Yes. Small Groups which have not been updated in the last 18 months will not receive the profit share. When the grove is quantified all of the accrued tonnes are captured and eligible for payment.
For farmers with less than 1,000 trees they ask us why they are not paid. What can we tell them?
Farmers with less than 1,000 trees need to plant more trees for them to qualify for pre- payments. The GHG contract says that farmers will plant 1000 trees in the first year of joining TIST and 5000 trees in the first 5 years.
Can we give tonnage information by grove instead of group?
No. TIST works with Small Groups and not individuals by grove.
Will carbon/profit share continue for 30 years?
Yes. As long as the trees are kept alive and TIST has profits to share.
How much carbon can a tree sequester? How much is this worth?
A tree can sequester more than 1 tonne of carbon. Trees should be kept alive for 30 years to maximize this carbon. Carbon prices depend on the global carbon markets. TIST has sold tonnes from between $3-10 US, before expenses.
How does recovering lost tonnes work?
Lost tonnes will be made up by the small group by planting many more new trees. Others make up tonnes by maintaining the existing trees and letting their growth exceed the lost tonnes. For some this will occur naturally because tonnes lost are a small proportion and their trees are healthy
Will unpaid groups and groves be paid? When?
Yes. As soon as possible.
Can you explain verified vs sequestered carbon?
Sequestered carbon is the carbon that a tree has or holds in its trunk and branches. While verified carbon is sequestered carbon that has been validated by verifiers.