Alberta Quantification Protocol for Conservation Cropping (CCP) (Version 1.0.)

T-CC...6869

N/A

GHD Limited

Carbon Credit

No-till

Recurring

External registry

Public network NFT

As Produced

CSA Clean Projects Registry

Soil sequestration of Soil Organic Carbon

CCP Version 1.0

Quantification of the reductions, removals and reversals of relevant sources and sinks for the GHGs will be completed using the methodologies outlined in the Alberta CCP protocol. This project will not consider the summer fallow reduction flexibility mechanism for any participating farms. The emission reduction quantification and calculation methodology for this project is described in detail. Emission reduction quantification formula used for this project according to the CCP, referring to Section 4.1, (page 30) of the Alberta CCP Protocol, the quantification approach is outlined below.

Emission Reduction = Emissions Baseline – Emissions Project Emissions Baseline = Emissions Energy Use + (Emissions Carbon Sequestration X Reserve Discount Factor) + Emissions Nitrogen Emissions Project = Emission Reduction = Emissions Baseline – Emissions Project Emissions Baseline = Emissions Energy Use + (Emissions Carbon Sequestration X Reserve Discount Factor) + Emissions Nitrogen Emissions Project = 0 WHERE: Emissions Baseline = sum of the emissions under the baseline condition • Emissions Energy Use = component of emissions change under source/sink B9 Herbicide Production to source sink P9; and emissions change under source/sink B14 to P14 for Field Operations (Table 8 below) • Emissions Carbon Sequestration = carbon component of emissions change under source/sink B13 Soil Carbon Dynamics to P13 Soil Carbon Dynamics (see Table 8 in link below) • Sequestered Carbon Reserve discount factor = Factor to account for reversals of carbon sequestration due to tillage events. • Emissions Nitrogen = component of emissions change under source/sink B13 Soil Nitrogen Dynamics to P13 Soil Nitrogen Dynamics (see Table 8 in link below) Table * found in: https://open.alberta.ca/dataset/b99725e1-5d2a-4427-baa8-14b9ec6c6a24/resource/db11dd55-ce34-4472-9b8b-cb3b30214803/download/6744004-2012-quantification-protocol-conservation-cropping-april-2012-version-1.0-2012-04-02.pdf

N/A

N/A

Live

None

2018 to 2021

See Above

982.55

345 growers

338981.0000

N/A

N/A

N/A

N/A

N/A

Farmers Edge

The performance standard baseline establishes net coefficients implementing the project activities in the protocol region, adjusted by the level of adoption of No Till and Full Till in the region. This approach addresses the ISO 14064-2 principle of additionality (on a proportional basis), conservativeness and minimizes leakage. The NET coefficients have been calculated according to Section 2.5 of the Environment Canada and Agriculture-Agri Food Canada seed document from 2006 called the Tillage System Default Coefficient Protocol (Haak, 2006). Given that the Conservation Cropping Protocol and its predecessors, the Tillage System Management protocol in Alberta and the Technical Seed Document in the federal protocol development process (circa 2006), the performance standard baseline has had multiple reviews by technical experts, stakeholders, government and public input, a barriers assessment on alternatives is not warranted. The approach to additionality applied in the Alberta government approved protocols (i.e., CCP) is an accepted approach in many circles – called ‘proportional or regional’ additionality. This performance standard baseline allows project developers (Farmers Edge) to use this protocol to quantify annual emissions reductions based on annual, incremental increases in soil carbon adjusted (discounted) for 2006 sector level adoption. This discounting approach allows all farm operators practicing conservation tillage farming to participate in conservation cropping offset projects, irrespective of the adoption date of the practice change. It assumes all carbon stored prior to 2001 is discounted from 2006 levels and only the new, incrementally stored carbon is eligible for offset credits. As adoption levels of no till increase, the potential for new carbon sequestration is reduced; the associated emission reduction coefficients and the resulting offset credit opportunities are also reduced. Additional information on adoption levels, emission factor coefficients and corresponding adjustment factors is available in the Technical Seed Document for Conservation Cropping (Version 1). Alberta reviewed the Clean Development Mechanism’s (CDM) barriers assessment tool, which was used to assess additionality on a project-by-project basis. Alberta adopted similar tools but has chosen to assess additionality at a sector level evaluated during protocol development. Section 3.1 of the Technical Guidance for Offset Protocol Developers (January 2011) explained additionality requirements for offset protocols being used in Alberta. Protocol development must demonstrate the project has one or more technical, social, or financial barriers that limit adoption of the project. New, innovative projects and activities may face more barriers and score higher on a barriers assessment than well-developed technologies. If it is determined that barriers do exist, the protocol developer must assess sector level adoption to assess business as usual practices. Notionally, business as usual is defined as approximately 40 per cent adoption. If 40% or more of the sector have adopted the activity, the perceived barriers identified initially are project specific, but the activity in general does not need incentive through the offset program to advance. Protocols will generally not be developed for activities with greater than 40 per cent adoption unless specific situations exist as deemed acceptable by Alberta. Through its tillage system management, and new conservation cropping protocol, Alberta recognized the benefit of maintaining and increasing soil carbon sequestration by incenting conservation tillage farming practices such as no till. Science demonstrates that no till practices must be maintained for a period of 20 years for soils to reach saturation and move to a steady state. Equilibrium is the point where soils no longer absorb new, incremental carbon.

To address permanence, the project tracks a pool of emissions allocated to a Buffer Reserve Pool. A buffer reserve discount factor is applied to every tonne of sequestered carbon calculated under this protocol to account for known rates of reversals based on historical trends and expert opinion. These tonnes are held by the Project Developer to drawdown in the event of a reversal. The reserve discount factor accounts for the average risk of reversal across all farms within a given protocol region and ensures conservativeness in crediting.

Shifting from conventional farming to conservation cropping increases carbon sequestered in the soil in the Parkland (Black and Dark Gray Chernozemics, and Gray and Dark Gray Luvisols) and Dry Prairie (Brown and Dark Brown Chernozemics) regions of western Canada. Conservation tillage (no till and reduced till) increases soil carbon accumulation and results in reduced lower nitrous oxide (N2O) emissions from less soil disturbance. In the case of no till, fewer tillage passes over a farm field also reduce fossil fuel emissions from farm equipment, further lowering the greenhouse gas footprint for the farm. Baseline: Under a baseline scenario, the conventional farming practice is the full till farming operation. As mentioned, mechanical disturbances release soil carbon into the atmosphere. Project: Under this project, the project condition for the tillage system management is the use of no till systems as defined in Table 1 of the CCP protocol, 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, full till 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 full till farming, which have been included in the coefficients provided in this protocol.

Sequestered carbon is a reversible activity. Tillage and other types of soil disturbances can cause previously sequestered carbon to be re-released to the atmosphere. This protocol manages the risk of reversal through a reserve discount factor (sequestered carbon reserve) applied to sequestered carbon to account for known rates of reversal occurring at a regional scale. This reserve factor discounts sequestered carbon by 7.5 to 12.5 per cent for the Dry Prairie and Parkland regions respectively according to the likelihood of reversals on a sector wide basis. Reversal events affecting less than 10 per cent of a total field area are considered to be a normal part of farm operations. Examples of these reversals include discretionary tilling to fix ruts or to manage weeds. Reversals under 10 per cent must be documented in the offset project report, but do not affect greenhouse gas emission reduction calculations. Reversal events that affect more than 10 per cent of a field area are considered beyond business-as-usual activities for farm operations. Reversals over 10 per cent must be documented in the offset project report, and affect fields must be removed from the project condition for the vintage year affected by the reversal. Examples of reversals may include re-seeding events and manure incorporation. Greenhouse gas emission reductions quantified using this reserve discount are considered permanently retired against future liabilities. Discounting for future liability ensures that offset credits quantified under this protocol are given to permanently sequestered carbon and not to carbon that may be released to the atmosphere as part of normal farm operations (e.g.: discretionary tillage for weed management). Alberta Environment and Water will do a periodic assessment of reversals against permanent reductions in the sequestered carbon reserve account. More information on the sequestered carbon reserve is available in Section 5.0 of the technical seed document

Protocol: Annual, incremental carbon sequestered in the soil through no till farming practices is eligible to generate offset credits starting, January 1, 2012 ending December 31, 2021. Project Report: Conservation Cropping practices such as no till are not required in any jurisdiction included in this project. The lands included in this project do not have any relevant legislative, technical, economic, sectoral, social, environmental, geographic, or site-specific requirements to adopt this activity. Project Report: This GHG emission reduction assertion was quantified using a quantification methodology considered to be industry best practice; • The project is based on an Alberta government approved quantification methodology, the Alberta CCP protocol, developed following the ISO 14064-2:2006, as required by the CSA CleanProjects Registry; • The GHG assertion has been verified by an independent third-party; • There are no regulations requiring the practice or prohibiting the use of the practice in the included jurisdictions. • The project is not currently subject to any climate change or emissions management legislation Provincially or Federally in Canada; • GHG emission reductions generated by this project are not listed on any other GHG reduction registry in Canada or internationally; • The project has not received any public funds in exchange for GHG emission reductions (e.g., offsets) resulting from this project; and • All environmental attributes generated by the project, including any GHG emission reduction benefits, are owned solely by Farmers Edge.

N/A

The Monitoring Plan for Farmers Edge Smart Carbon Soil Carbon Project 2 integrates very well with Farmers Edge regular customer procedures for agronomic consulting and services. Data collection for monitoring purposes follows Farmers Edge processes and data systems already available (Please refer to Smart Carbon Program Standard Operating Procedure documents for details). Customer facing staff ensure data collection processes are executed and tracked in Farmers Edge data systems, FarmCommand, as well as SharePoint system and CRM system. Figure 6 below outlines the Farmers Edge project Data Flow. Field staff who work directly with customers, which includes Solution Sales Specialist, Precision Agronomists, Precision Technicians, Client Success Managers and Administrators, each has a unique, secure login to the FarmCommand system. All additions and changes to data in the FarmCommand are logged by person so all data and documents can be tracked back to the person who last handled it. Also, many Farmers Edge Agronomists, Precision Agronomists and Solution Sales Specialists are certified CCAs and/or Professional Agrologists (P.Ag.). Designations are noted in system for review purposes. Customer farm data is input into the FarmCommand system at two levels, Farm or Field. Farm level documents such as signed emissions contracts and Customer Service Agreements are collected during customer sign-up or renewal process, captured as a DocuSigned pdf, or scanned to pdf format, and uploaded to the CRM system. Our agronomic services contracts last four or five years. Then, each year, technical field staff work with the grower to help develop the annual crop plan for each field, which then forms the core of the agronomic data gathering system that is FarmCommand. Field level data is mostly passively collected and gets monitored by the Precision Technicians and Precision Agronomists and any system issues are corrected. Field specific details not available electronically such as crop insurance and irrigation receipts are collected by the Tech’s and Agronomists. Most Field level data is “monitored” or collected electronically using a Farmers Edge proprietary system, the CanPlug. The CanPlug system is a telematics-based data gathering device supplied for 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. 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 seeding and/or 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 fertilizing and seeding events. • 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 Technicians and/or 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. Once operational, prescriptions can also be sent to the seeding unit controller via CanPlug. • 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 Inc. (Farmers Edge) retained GHD Limited (GHD) to undertake a verification of the Greenhouse Gas (GHG) emission reductions (Offset) for the Farmers Edge Smart Carbon Soil Carbon Project #3 (Project), located in various locations across Manitoba, Saskatchewan, and Alberta for the period from January 1, 2018 to December 31, 2021. The Project is registered with the CleanProjects® Registry (Registry). The verification will be conducted in accordance with the ISO 14064. The project is defined by the implementation of a direct seeding regime. The quantification of reductions is based on a protocol approved for use under Alberta’s Regulatory system – the Conservation Cropping Protocol (CCP) – which quantifies reductions associated with a change from conventional tillage to no-till farming. This protocol is used to form the basis of quantification. It is supported with additional modelling completed during an Ontario Protocol Development Process – which took the existing CCP and developed factors for other jurisdictions across Canada. No till adoption levels are based on 2006 Census of Agriculture tillage adoption rates, as per the Alberta CCP. GHD has prepared this Verification Report for Farmer’s Edge and the Registry. Farmer’s Edge was responsible for the preparation and fair presentation of the GHG Assertion in accordance with the criteria and engaging with a qualified third-party verifier to verify the GHG Assertion. GHD's objective and responsibility was to provide an opinion regarding whether the Project’s 2018-2021 GHG Assertion was free of material misstatement and that the information reported is a fair and accurate representation of the operations for the reporting period accurate and consistent with the requirements of the protocol and the registry, and associated criteria. The criteria used by GHD for the verification of the GHG Assertion is detailed in Section 2. GHD completed the verification of the GHG Emissions Report in accordance with ISO 14064-3:2006. GHD completed the verification to a reasonable level of assurance. Farmer’s Edge reported 117,645 .5 tonnes CO2e as the total attributable emissions for 2018-2021 for the Project. This includes the GHG emissions resulting from operating conditions from January 1, 2018 through December 31, 2021 (reporting period). The quantitative aggregated magnitude of errors, omissions, and misstatements is detailed in Section 3.2. Based on verification procedures undertaken to a reasonable level of assurance, it is GHD’s opinion that the GHG Assertion is materially correct and is a fair and accurate representation of the Project’s total attributable emissions for the reporting period; and that the GHG Assertion was prepared, and emissions were quantified in accordance with the requirement of Protocol and the Registry. Information in the GHG Assertion which was not reported or quantified in accordance with the Protocol but was corrected during the verification process includes: - The farming area used to calculate offset credits were updated to be equal or less than land title area - Update project report to include coefficients up to 4 decimal places

Initial project execution was in 2021 and 2022 based on farmer field-by-field activities from January 1, 2018 to December 31, 2021.

1341 Dugald Road, Canada, MB, Winnipeg, R2J 0H3

-97.05855772731057

49.88636458211731

N/A

Farmers Edge

N/A

Verifier's Opinion (see attached verification report): GHD has prepared this Verification Report for Farmers Edge and the Registry. Farmers Edge was responsible for the preparation and fair presentation of the GHG Assertion in accordance with the criteria and engaging with a qualified third-party verifier to verify the GHG Assertion. GHD's objective and responsibility was to provide an opinion regarding whether the Project’s 2018-2021 GHG Assertion was free of material misstatement and that the information reported is a fair and accurate representation of the operations for the reporting period accurate and consistent with the requirements of the protocol and the registry, and associated criteria. The criteria used by GHD for the verification of the GHG Assertion is detailed in Section 2. GHD completed the verification of the GHG Emissions Report in accordance with ISO 14064-3:2006. GHD completed the verification to a reasonable level of assurance. Farmers Edge reported 309,823 tons CO2e as the total attributable emissions for 2018-2021 for the Project. This includes the GHG emissions resulting from operating conditions from January 1, 2018, through December 31, 2021 (reporting period). The quantitative aggregated magnitude of errors, omissions, and misstatements is detailed in Section 3.2. Based on verification procedures undertaken to a reasonable level of assurance, it is GHD’s opinion that the GHG Assertion is materially correct and is a fair and accurate representation of the Project’s total attributable emissions for the reporting period; and that the GHG Assertion was prepared, and emissions were quantified in accordance with the requirement of Protocol and the Registry. Information in the GHG Assertion which was not reported or quantified in accordance with the Protocol but was corrected during the verification process includes: - Provide sufficient back up data to support the percentage of soil disturbance for two farms, according to protocol requirements

Yes

Farmers Edge

Farmers Edge Smart Carbon Program Standard Operating Procedure

Farmers Edge Smart Carbon Program Standard Operating Procedure

N/A

N/A

N/A

Farmers Edge Smart Carbon Soil Carbon Project 4 (Project Identifier: 5593-2852)

The protocol used for this project is the Alberta Quantification Protocol for Conservation Cropping (CCP) (Version 1.0) April 2012, which was developed following ISO 14064-2:2006 guidelines. The project is voluntary in a non-regulated sector. Tillage practices are not regulated within the jurisdictions. The project involves the Greenhouse Gas (GHG) reductions calculated with tillage management changes from full tillage to no tillage, based on the soil disturbance and passes made on each parcel of land and includes the sequestration of carbon in the soil, along with reduced fossil CO2 emissions and Nitrogen (N) fertilizer emissions (according to ISO 14064-2:2006), because of such management practices (Note -there are no N management activities associated with this protocol). The CCP is directly relevant to this project because it lays out the No-Till definition of soil disturbance that all the tillage implements must meet, that are used by the farms involved (sub-projects). The protocol also defines the records that must be collected and retained to prove the No-Till status required for offset creation. The summer fallow reduction flexibility mechanism is not used in this project. The Project is comprised of 345 growers and includes 3,546,642 acres of land in Alberta, Saskatchewan, and Manitoba. A total of 309,991 tons of carbon offsets have been verified and a total of 29,175 tons have been quantified and are held in a Reserve Pool by the Project Developer.

Alberta Quantification Protocol for Conservation Cropping (CCP) (Version 1.0.)

T-CC...6865

N/A

GHD Limited

Carbon Credit

No-till

One-time

External registry

Private network NFT (Triangle)

As Produced

CSA Clean Projects Registry

Soil sequestration of Soil Organic Carbon

CCP Version 1.0

Quantification of the reductions, removals and reversals of relevant sources and sinks for the GHGs will be completed using the methodologies outlined in the Alberta CCP protocol. This project will not consider the summer fallow reduction flexibility mechanism for any participating farms. The emission reduction quantification and calculation methodology for this project is described in detail. Emission reduction quantification formula used for this project according to the CCP, referring to Section 4.1, (page 30) of the Alberta CCP Protocol, the quantification approach is outlined below.

Emission Reduction = Emissions Baseline – Emissions Project Emissions Baseline = Emissions Energy Use + (Emissions Carbon Sequestration X Reserve Discount Factor) + Emissions Nitrogen Emissions Project = Emission Reduction = Emissions Baseline – Emissions Project Emissions Baseline = Emissions Energy Use + (Emissions Carbon Sequestration X Reserve Discount Factor) + Emissions Nitrogen Emissions Project = 0 WHERE: Emissions Baseline = sum of the emissions under the baseline condition • Emissions Energy Use = component of emissions change under source/sink B9 Herbicide Production to source sink P9; and emissions change under source/sink B14 to P14 for Field Operations (Table 8 below) • Emissions Carbon Sequestration = carbon component of emissions change under source/sink B13 Soil Carbon Dynamics to P13 Soil Carbon Dynamics (see Table 8 in link below) • Sequestered Carbon Reserve discount factor = Factor to account for reversals of carbon sequestration due to tillage events. • Emissions Nitrogen = component of emissions change under source/sink B13 Soil Nitrogen Dynamics to P13 Soil Nitrogen Dynamics (see Table 8 in link below) Table * found in: https://open.alberta.ca/dataset/b99725e1-5d2a-4427-baa8-14b9ec6c6a24/resource/db11dd55-ce34-4472-9b8b-cb3b30214803/download/6744004-2012-quantification-protocol-conservation-cropping-april-2012-version-1.0-2012-04-02.pdf

N/A

N/A

Live

None

2018 to 2021

706.48

See Above

183 growers

129286.0000

N/A

N/A

N/A

N/A

N/A

Farmers Edge

The performance standard baseline establishes net coefficients implementing the project activities in the protocol region, adjusted by the level of adoption of No Till and Full Till in the region. This approach addresses the ISO 14064-2 principle of additionality (on a proportional basis), conservativeness and minimizes leakage. The NET coefficients have been calculated according to Section 2.5 of the Environment Canada and Agriculture-Agri Food Canada seed document from 2006 called the Tillage System Default Coefficient Protocol (Haak, 2006). Given that the Conservation Cropping Protocol and its predecessors, the Tillage System Management protocol in Alberta and the Technical Seed Document in the federal protocol development process (circa 2006), the performance standard baseline has had multiple reviews by technical experts, stakeholders, government and public input, a barriers assessment on alternatives is not warranted. The approach to additionality applied in the Alberta government approved protocols (i.e., CCP) is an accepted approach in many circles – called ‘proportional or regional’ additionality. This performance standard baseline allows project developers (Farmers Edge) to use this protocol to quantify annual emissions reductions based on annual, incremental increases in soil carbon adjusted (discounted) for 2006 sector level adoption. This discounting approach allows all farm operators practicing conservation tillage farming to participate in conservation cropping offset projects, irrespective of the adoption date of the practice change. It assumes all carbon stored prior to 2001 is discounted from 2006 levels and only the new, incrementally stored carbon is eligible for offset credits. As adoption levels of no till increase, the potential for new carbon sequestration is reduced; the associated emission reduction coefficients and the resulting offset credit opportunities are also reduced. Additional information on adoption levels, emission factor coefficients and corresponding adjustment factors is available in the Technical Seed Document for Conservation Cropping (Version 1). Alberta reviewed the Clean Development Mechanism’s (CDM) barriers assessment tool, which was used to assess additionality on a project-by-project basis. Alberta adopted similar tools but has chosen to assess additionality at a sector level evaluated during protocol development. Section 3.1 of the Technical Guidance for Offset Protocol Developers (January 2011) explained additionality requirements for offset protocols being used in Alberta. Protocol development must demonstrate the project has one or more technical, social, or financial barriers that limit adoption of the project. New, innovative projects and activities may face more barriers and score higher on a barriers assessment than well-developed technologies. If it is determined that barriers do exist, the protocol developer must assess sector level adoption to assess business as usual practices. Notionally, business as usual is defined as approximately 40 per cent adoption. If 40% or more of the sector have adopted the activity, the perceived barriers identified initially are project specific, but the activity in general does not need incentive through the offset program to advance. Protocols will generally not be developed for activities with greater than 40 per cent adoption unless specific situations exist as deemed acceptable by Alberta. Through its tillage system management, and new conservation cropping protocol, Alberta recognized the benefit of maintaining and increasing soil carbon sequestration by incenting conservation tillage farming practices such as no till. Science demonstrates that no till practices must be maintained for a period of 20 years for soils to reach saturation and move to a steady state. Equilibrium is the point where soils no longer absorb new, incremental carbon.

To address permanence, the project tracks a pool of emissions allocated to a Buffer Reserve Pool. A buffer reserve discount factor is applied to every tonne of sequestered carbon calculated under this protocol to account for known rates of reversals based on historical trends and expert opinion. These tonnes are held by the Project Developer to drawdown in the event of a reversal. The reserve discount factor accounts for the average risk of reversal across all farms within a given protocol region and ensures conservativeness in crediting.

Shifting from conventional farming to conservation cropping increases carbon sequestered in the soil in the Parkland (Black and Dark Gray Chernozemics, and Gray and Dark Gray Luvisols) and Dry Prairie (Brown and Dark Brown Chernozemics) regions of western Canada. Conservation tillage (no till and reduced till) increases soil carbon accumulation and results in reduced lower nitrous oxide (N2O) emissions from less soil disturbance. In the case of no till, fewer tillage passes over a farm field also reduce fossil fuel emissions from farm equipment, further lowering the greenhouse gas footprint for the farm. Baseline: Under a baseline scenario, the conventional farming practice is the full till farming operation. As mentioned, mechanical disturbances release soil carbon into the atmosphere. Project: Under this project, the project condition for the tillage system management is the use of no till systems as defined in Table 1 of the CCP protocol, 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, full till 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 full till farming, which have been included in the coefficients provided in this protocol.

Sequestered carbon is a reversible activity. Tillage and other types of soil disturbances can cause previously sequestered carbon to be re-released to the atmosphere. This protocol manages the risk of reversal through a reserve discount factor (sequestered carbon reserve) applied to sequestered carbon to account for known rates of reversal occurring at a regional scale. This reserve factor discounts sequestered carbon by 7.5 to 12.5 per cent for the Dry Prairie and Parkland regions respectively according to the likelihood of reversals on a sector wide basis. Reversal events affecting less than 10 per cent of a total field area are considered to be a normal part of farm operations. Examples of these reversals include discretionary tilling to fix ruts or to manage weeds. Reversals under 10 per cent must be documented in the offset project report, but do not affect greenhouse gas emission reduction calculations. Reversal events that affect more than 10 per cent of a field area are considered beyond business-as-usual activities for farm operations. Reversals over 10 per cent must be documented in the offset project report, and affect fields must be removed from the project condition for the vintage year affected by the reversal. Examples of reversals may include re-seeding events and manure incorporation. Greenhouse gas emission reductions quantified using this reserve discount are considered permanently retired against future liabilities. Discounting for future liability ensures that offset credits quantified under this protocol are given to permanently sequestered carbon and not to carbon that may be released to the atmosphere as part of normal farm operations (e.g.: discretionary tillage for weed management). Alberta Environment and Water will do a periodic assessment of reversals against permanent reductions in the sequestered carbon reserve account. More information on the sequestered carbon reserve is available in Section 5.0 of the technical seed document

Protocol: Annual, incremental carbon sequestered in the soil through no till farming practices is eligible to generate offset credits starting, January 1, 2012 ending December 31, 2021. Project Report: Conservation Cropping practices such as no till are not required in any jurisdiction included in this project. The lands included in this project do not have any relevant legislative, technical, economic, sectoral, social, environmental, geographic, or site-specific requirements to adopt this activity. Project Report: This GHG emission reduction assertion was quantified using a quantification methodology considered to be industry best practice; • The project is based on an Alberta government approved quantification methodology, the Alberta CCP protocol, developed following the ISO 14064-2:2006, as required by the CSA CleanProjects Registry; • The GHG assertion has been verified by an independent third-party; • There are no regulations requiring the practice or prohibiting the use of the practice in the included jurisdictions. • The project is not currently subject to any climate change or emissions management legislation Provincially or Federally in Canada; • GHG emission reductions generated by this project are not listed on any other GHG reduction registry in Canada or internationally; • The project has not received any public funds in exchange for GHG emission reductions (e.g., offsets) resulting from this project; and • All environmental attributes generated by the project, including any GHG emission reduction benefits, are owned solely by Farmers Edge.

N/A

The Monitoring Plan for Farmers Edge Smart Carbon Soil Carbon Project 2 integrates very well with Farmers Edge regular customer procedures for agronomic consulting and services. Data collection for monitoring purposes follows Farmers Edge processes and data systems already available (Please refer to Smart Carbon Program Standard Operating Procedure documents for details). Customer facing staff ensure data collection processes are executed and tracked in Farmers Edge data systems, FarmCommand, as well as SharePoint system and CRM system. Figure 6 below outlines the Farmers Edge project Data Flow. Field staff who work directly with customers, which includes Solution Sales Specialist, Precision Agronomists, Precision Technicians, Client Success Managers and Administrators, each has a unique, secure login to the FarmCommand system. All additions and changes to data in the FarmCommand are logged by person so all data and documents can be tracked back to the person who last handled it. Also, many Farmers Edge Agronomists, Precision Agronomists and Solution Sales Specialists are certified CCAs and/or Professional Agrologists (P.Ag.). Designations are noted in system for review purposes. Customer farm data is input into the FarmCommand system at two levels, Farm or Field. Farm level documents such as signed emissions contracts and Customer Service Agreements are collected during customer sign-up or renewal process, captured as a DocuSigned pdf, or scanned to pdf format, and uploaded to the CRM system. Our agronomic services contracts last four or five years. Then, each year, technical field staff work with the grower to help develop the annual crop plan for each field, which then forms the core of the agronomic data gathering system that is FarmCommand. Field level data is mostly passively collected and gets monitored by the Precision Technicians and Precision Agronomists and any system issues are corrected. Field specific details not available electronically such as crop insurance and irrigation receipts are collected by the Tech’s and Agronomists. Most Field level data is “monitored” or collected electronically using a Farmers Edge proprietary system, the CanPlug. The CanPlug system is a telematics-based data gathering device supplied for 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. 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 seeding and/or 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 fertilizing and seeding events. • 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 Technicians and/or 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. Once operational, prescriptions can also be sent to the seeding unit controller via CanPlug. • 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 Inc. (Farmers Edge) retained GHD Limited (GHD) to undertake a verification of the Greenhouse Gas (GHG) emission reductions (Offset) for the Farmers Edge Smart Carbon Soil Carbon Project #3 (Project), located in various locations across Manitoba, Saskatchewan, and Alberta for the period from January 1, 2018 to December 31, 2021. The Project is registered with the CleanProjects® Registry (Registry). The verification will be conducted in accordance with the ISO 14064. The project is defined by the implementation of a direct seeding regime. The quantification of reductions is based on a protocol approved for use under Alberta’s Regulatory system – the Conservation Cropping Protocol (CCP) – which quantifies reductions associated with a change from conventional tillage to no-till farming. This protocol is used to form the basis of quantification. It is supported with additional modelling completed during an Ontario Protocol Development Process – which took the existing CCP and developed factors for other jurisdictions across Canada. No till adoption levels are based on 2006 Census of Agriculture tillage adoption rates, as per the Alberta CCP. GHD has prepared this Verification Report for Farmer’s Edge and the Registry. Farmer’s Edge was responsible for the preparation and fair presentation of the GHG Assertion in accordance with the criteria and engaging with a qualified third-party verifier to verify the GHG Assertion. GHD's objective and responsibility was to provide an opinion regarding whether the Project’s 2018-2021 GHG Assertion was free of material misstatement and that the information reported is a fair and accurate representation of the operations for the reporting period accurate and consistent with the requirements of the protocol and the registry, and associated criteria. The criteria used by GHD for the verification of the GHG Assertion is detailed in Section 2. GHD completed the verification of the GHG Emissions Report in accordance with ISO 14064-3:2006. GHD completed the verification to a reasonable level of assurance. Farmer’s Edge reported 117,645 .5 tonnes CO2e as the total attributable emissions for 2018-2021 for the Project. This includes the GHG emissions resulting from operating conditions from January 1, 2018 through December 31, 2021 (reporting period). The quantitative aggregated magnitude of errors, omissions, and misstatements is detailed in Section 3.2. Based on verification procedures undertaken to a reasonable level of assurance, it is GHD’s opinion that the GHG Assertion is materially correct and is a fair and accurate representation of the Project’s total attributable emissions for the reporting period; and that the GHG Assertion was prepared, and emissions were quantified in accordance with the requirement of Protocol and the Registry. Information in the GHG Assertion which was not reported or quantified in accordance with the Protocol but was corrected during the verification process includes: - The farming area used to calculate offset credits were updated to be equal or less than land title area - Update project report to include coefficients up to 4 decimal places

Initial project execution was in 2021 and 2022 based on farmer field-by-field activities from January 1, 2018 to December 31, 2021.

1341 Dugald Road, Canada, MB, Winnipeg, R2J 0H3

-97.05855772731057

49.88636458211731

N/A

Farmers Edge

N/A

See Verifier Report (attached)

Yes

Farmers Edge

Farmers Edge Smart Carbon Program Standard Operating Procedure

Farmers Edge Smart Carbon Program Standard Operating Procedure

N/A

N/A

N/A

Farmers Edge Smart Carbon Soil Carbon Project 3 (Project Identifier: 3587-1296)

The project is defined by the implementation of a direct seeding regime. The quantification of reductions is based on a protocol approved for use under Alberta’s Regulatory system – the Conservation Cropping Protocol (CCP) – which quantifies reductions associated with a change from conventional tillage to no-till farming. This protocol is used to form the basis of quantification. It is supported with additional modelling completed during an Ontario Protocol Development Process which took the existing CCP and developed factors for other jurisdictions across Canada. No till adoption levels are based on 2006 Census of Agriculture tillage adoption rates, as per the Alberta CCP. This is an aggregated CCP project. All sub-project farmlands are located across Western Canada (BC, Alberta, Saskatchewan, and Manitoba)The Project is comprised of 183 growers, and includes 1,215,280 acres of land in Alberta, Saskatchewan, and Manitoba. A total of 117,644 tons of carbon offsets have been verified and a total of 11,642 tons have been quantified and are held in a Reserve Pool by the Project Developer. The Project was developed under the the Alberta Conservation Cropping Technical Seed Document. This is the Tillage System Default Coefficient protocol which quantifies the greenhouse gas emissions offsets associated with a change from conventional (full) tillage to reduced tillage or no tillage in Canadian agricultural soils. It is used in the Alberta Conservation cropping protocol to develop the net coefficients for use in Alberta. In this project, this calculation is used to adapt for the inclusion of regions across the Prairies. This project is quantified according to the CCP protocol - a robust and transparently developed methodology based on ISO 14064-2 and approved for use in Alberta’s Offset Emissions System. The methodology relies on Canada’s National Emissions Inventory methodology for soil organic carbon change for No-Till projects. The CCP lays out all the Sinks, Sources and Reservoirs (SSRs) as well as the data and methodologies required to be eligible under the protocol. Farmers Edge has chosen the CCP protocol over other methodologies because the CCP protocol has undergone technical, stakeholder and public review as part of its development, with the first iteration in 2007 under the No-Till protocol, and then multiple improvements over time since then (at least 7 revisions to improve implementation in the Alberta Offset System). The CCP protocol has been used by many project developers to quantify reductions associated with CCP projects (almost 17 million tons to date on the AEOR). The technical seed document for the original Alberta No-Till protocol was developed under a Federal-Provincial-Territorial working group in 2006 for all of Canada, following the ISO 14064 Part 2 process-based standard. In late 2006-2007, the first iteration of the Tillage System Management protocol was approved for use as a compliance protocol by the Government of Alberta, under the Alberta Offset System protocol development process. The protocol development process included a multi-step stakeholder review process consisting of a technical expert review, a broader stakeholder review process and a public posting period, all of which were managed by the Government of Alberta. The protocol is a well-established quantification protocol applicable to soil conservation projects in Canada and was therefore considered to be the best available quantification protocol to apply for this Project. To ensure broader applicability of this protocol across Canada, the project is quantified according to the approved methodology in the CCP. but with a couple modifications to the existing methodology. These modifications enable a broader geographic scope while ensuring all reductions and removals are quantified in accordance with the CCP and ISO principles, and Canada’s National Emissions Inventory methodology. Modifications to the quantification methodology outlined in the CCP are discussed in Section 2.8 of the attached project report. Sources, Sinks and Reservoirs (SSRs) considered to be relevant and included for quantification under the Protocol are defined in Section 4 of the attached project report, including justification for the exclusion of SSRs identified in the life cycle elements of the project and baseline conditions. SSRs for the project condition are summarized later in this document

CDM AMS I.D.

T-CC...6807

N/A

N/A

Carbon Credit

Solar PV Avoidance

Recurring

D-MRV

Private network NFT (Triangle)

As Produced

Triangle

See above

CDM AMS I.D. v18

Based on the grid power generated from heavy crude oil, the solar panels capture the difference between the heavy crude carbon footprint and the footprint derived from solar panels.

1. The EIA reports 0.08 gallons of liquid petroleum is used to produce 1 kilowatt-hour (kWh) of electricity – that's ~12.69 kWh per gallon of petroleum 2. Heavy Oil Calculations / gallon: CO2 (kg): 11.27 CH4 (g): 0.42 N2O (g): 0.08 equals 11.399 CO2e (kg) 3. Based on 122,005,563 kWh of power * EIA ratio (0.08) equals 9,760,445.04 gallons of Heavy Oil 4. 9,760,445 gallons * 11.399 (CO2e kg) = 111.257 MT CO2e

None

N/A

Live

None

Power generated by Belco

Heavy Oil Calculations / gallon: CO2 (kg): 11.27 CH4 (g): 0.42 N2O (g): 0.08 equals 11.399 CO2e (kg)

Based on 122,005,563 kWh of power * EIA ratio (0.08) equals 9,760,445.04 gallons of Heavy Oil

1

111.257 MT CO2e

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N/A

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N/A

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Avoidance of GHG

N/A

GHG avoidance through use of Roof Solar Panels

N/A

As per Clean Development Mechanism methodology AMD ID v18, accepted by validated and accepted by the Verra registry.

N/A

Daily inverter measurement

TBD

N/A

25 Pomander Rd, Bermuda, PAG, Paget Parish, PG 05

-64.77411

32.2911606

N/A

Royal Hamilton Amateur Dinghy Club

N/A

N/A

Yes

Enphase

N/A

Enphase Inverter

N/A

N/A

N/A

PV Solar Panels on Roof

Installation of PV Solar Panels on Roof (186 Panels x 360 Watts/1000=66.96kW) on 3,357sq. ft.