November 19, 2024

By Gerelyn Terzo, Global AgInvesting Media

With 2025 barreling around the corner, the ag industry is preparing to continue the discussion on several key themes that are shaping the future of the industry. Many influencers from the sector will be gathering at GAI New York in the spring (April 22-24). In the first of a series of articles that will highlight the event, this one previews a highly anticipated panel discussion on the long-term stewardship of ranchland.

Global AgInvesting conferences feature longer-term investor groups allocating capital into farmland, agriculture and natural capital asset classes. In recent years, a greater emphasis on responsible investing practices has highlighted these trends, resulting in additional revenue streams. GAI’s upcoming panel on April 23, 2025, entitled “Long Term Stewardship of Agri-Ranchland Properties,” will cover multi-generational asset allocation strategies with restorative grazing and soil health in mind.

In this installment, seasoned rancher James Clement, who serves as senior vice president of grass and rangeland at EarthOptics, shared his thoughts on the importance of long-term land stewardship. (Be sure and stay with us to the end for a special message from Global AgInvesting Founder Greg Mellinger.)

1.) GAI News: Tell us about your family’s rich history in ranching.

Clement: “Both sides of my family have been ranching for a long time. My mother’s side, Beggs Cattle Company, is a traditional, 150-year-old ranching operation in North and Northwest Texas – in the Caprock and Comancheria country. I’m a fifth-generation rancher on that side. My Dad’s family started buying land in the mid-1800s. My great, great, great grandfather, Captain Richard King, was a riverboat captain who transitioned toward becoming a rancher during the beef boom of the 19th century. I’m a sixth-generation rancher on that side, King Ranch.

“Following active time in the Marine Corps and working on ranches in Texas, Australia, Florida, Africa and Texas, I worked for 10 years running the horse program and serving as a landman with King Ranch. A landman traditionally serves as an intermediary between ranchers and oil and gas companies, managing operations, facilitating business development and negotiating contracts between the two parties. Today, a landman must be informed on renewables, a variety of surface issues and now in the opportunity of ecosystem markets, including carbon credits.

“In my pursuit of soil carbon capture initiatives for King Ranch, I was introduced to EarthOptics, a company specializing in soil data measurement and mapping, and have been with them ever since. Soil data plays a pivotal role in enhancing agricultural productivity, supports the resilience of our industry and offers an additional revenue stream for ranches to maintain financial viability.

“Healthy soil is the foundation of healthy land, but ranches must also remain profitable to be sustainable. Without positive cash flow, even the healthiest soil cannot sustain a ranch. Over the past 50-60 years, many ranches have been fragmented or sold off. By leveraging soil data, we can slow this trend and, ideally, reverse it — fostering the growth of ranchland rather than its decline.”

2.) GAI News: Can you share with us about the ranching industry’s carbon footprint stigma and how you’re trying to shift this narrative?

Clement: “While much attention is given to the detrimental effects of methane on the ecosystem, the broader impact of well-managed ranchland and soil health is far more significant than the relatively minor contribution of methane emissions. Methane, for instance, cycles back into the soil approximately every decade, whereas carbon sequestration in healthy soils can persist for millennia, with a potential retention period extending up to 1,000 years and beyond. Thus, the long-term environmental benefits of soil management far outweigh the transient impact of methane.

“Last year, Texas saw the loss of a quarter-million acres to development. The cement industry, which degrades all soil quality, is so carbon-intensive that if it were a nation, it would rank as the third-largest emitter of carbon globally, following only the U.S. and China. The government’s use of eminent domain, coupled with relentless urban sprawl and unchecked development over fragile ecosystems, is profoundly damaging. This expansion is wreaking havoc on North America’s delicate grasslands, which are the planet’s most vital natural carbon sinks. North America’s rangelands are the most resilient in the world, but they cannot do their job when we cover them with concrete.”

3.) GAI News: Through which lens do you view regenerative ag?

Clement: “The concept of ‘regenerative agriculture’ is not a new one; rather, it reflects an evolution of practices and a rebranding of sustainability. A truly sustainable operation must, first and foremost, remain financially viable, but the key to long-term success lies in prioritizing soil health and land stewardship. Those who adopt a long-term perspective on land management are inherently aligned with the principles of regenerative agriculture. Rather than focusing on short-term gains, we must shift our mindset toward making decisions that consider the next 100 years, ensuring that our land remains productive and viable for future generations. This will, in the long run, also be more profitable.

“Equally important is the need to quantify and measure the tangible benefits of soil improvement, enabling us to protect natural resources in perpetuity. At EarthOptics, we provide data-driven insights that support the long-term health and stewardship of the land. This approach transforms regenerative and holistic agriculture from a subjective philosophy into an objective, measurable practice—one that is not only grounded in science but can also be monetized through carbon credits and other market-driven incentives. These credits can help pay for the upfront investment in more holistic approaches that will create a more profitable enterprise for years to come.”

4.) GAI News: How is the ag industry cultivating the next generation of ranchers?

Clement: “Ranchers are often the unsung guardians of our ecosystems, their vital role frequently overlooked. Ranching is grueling, demanding work. Ranchers and farmers often labor seven days a week, sacrificing precious time with their families in the process. To make matters more difficult, America’s commitment to cheap food creates significant economic pressures, making ranching a challenging and underappreciated career choice.

“However, if we can reframe the narrative to highlight both the financial opportunities and the positive environmental impact that ranching can offer—whether on 10 or 10,000 acres—we can inspire and engage the next generation of ranchers. By emphasizing the dual rewards of sustainable land management and economic viability, we can reignite passion for this essential profession and attract a new wave of motivated individuals ready to carry on the legacy of responsible stewardship.”

5.) GAI News: How would you characterize corporate demand for U.S. carbon credits?

Clement: “In the U.S., the carbon market is voluntary, while in regions like Australia and Europe, it is regulated and mandatory. As a result, carbon credits in regulated markets can be worth five times more—$100-$150 per ton—compared to the $20-$40 per ton in the U.S. Many international companies are already seeking cheaper carbon credits in the U.S. to meet their 2030 sustainability targets, regardless of government mandates. This will drive the U.S. price up significantly leading to the 2030 commitment deadlines. I am enthusiastic about this demand coming from the private sector rather than government regulation.

“To transact carbon credits, rigorous measurement, reporting and verification (MRV) are required to prove the amount of carbon sequestered on specific acreage. At EarthOptics, we provide the data necessary for this process, with multiple third-party auditors validating that every measured ton of carbon sequestration is properly verified and truly serves as one carbon credit. This ensures the process is transparent and monetizable for both buyers (large companies) and sellers (ranchers and the developers that represent us in the market).”

6.) GAI News: What about investor demand for ranchland assets at this juncture?

Clement: “American land values are consistently rising, driven not only by increasing demand but also by growing productivity and cash flow opportunities. For financial investors considering involvement, the decision often comes down to whether they are more attracted to the fundamentals of owning ranchland or to the opportunity of purchasing carbon credits or participating in other ecosystem markets. The answer depends on the investor’s portfolio strategy and risk appetite.

“One essential consideration is that land investments require a long-term commitment. This strategy is not suitable for those seeking quick returns. Carbon credit contracts, for example, typically span 15-30 years or longer. Investors looking for faster gains may find purchasing carbon credits more appealing than investing and managing land. However, for those interested in land stewardship, a long-term mindset is crucial, as successful land management requires both a passion for learning and a commitment to sustainable practices over time.”

7.) GAI News: Finally, what makes you excited about this panel discussion on the long-term stewardship of agri-ranchland properties?

Clement: “This panel will feature individuals who are deeply committed to creating a positive impact on the world through responsible land ownership. You have landowners who have learned lessons from the beginning of land ownership all the way to preparing an eighth generation. For all of us, stewardship of the land is not just a profession but an honor and a privilege. These landowners are driven by a profound sense of duty, not by the pursuit of instant financial gain. Their work is rooted in a long-term commitment to environmental stewardship, sustainable practices and leaving a legacy that enriches the planet for future generations. This is a testament to the transformative power of purposeful land management and the dedication of those who see it as their responsibility to make the world a better place.”

GAI News: Thank you, James, and we are looking forward to seeing you in New York!

As promised, Global AgInvesting Founder Greg Mellinger chimed in on what he is most looking forward to from this panel. He said,

“I think this GAI session will provide a window into the unique features of natural capital investing that really appeal to longer-term investors who also want to ultimately leave these assets better than when they took them over.”

Be sure and reserve your spot at GAI New York 2025 today, or ask us about sponsorship opportunities.

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