Official Producer Payment & Revenue Distribution Policy

1. GENERAL FRAMEWORK & LIFECYCLE

This policy governs the financial relationship between Boomitra and producers (farmers/ranchers) following the successful issuance of carbon credits.

• Post-Issuance Process: Once credits are officially issued, Boomitra initiates the sales process to global buyers. Payments are distributed to producers as these sales are finalized, adhering to a predefined vesting schedule.
• Credit Quantification: The number of credits earned is directly proportional to the volume of soil organic carbon sequestered during a specific monitoring period. This is achieved through the verified adoption of improved agricultural practices.
• Pricing Mechanics: Credit prices fluctuate based on global market conditions and specific buyer interest. Boomitra is committed to securing the highest possible market price by emphasizing the quality and environmental impact of the credits.
• Transparency & Tracking: Producers can monitor the real-time status of credit sales through a progress bar in the Boomitra Rancher/Farmer App, which displays the percentage of credits sold from a given monitoring period.

2. MONITORING AND VERIFICATION STANDARDS

To maintain project integrity, all carbon removals must undergo a rigorous verification process.

• Defined Monitoring Periods: A monitoring period typically spans 2 to 5 years, as determined by the specific project methodology and carbon standard rules.
• Monitoring Reports: All carbon improvements occurring within this timeframe are documented in a formal monitoring report.
• Third-Party Auditing: Every report must be reviewed and verified by an independent third-party auditor before any carbon credits can be issued for sale.

3. PAYMENT ELIGIBILITY AND REQUIREMENTS

Payments are strictly regulated to ensure funds reach the correct legal entity.

• Required Documentation: Producers must provide comprehensive banking details through the Boomitra App, including:
  • Full Bank Name and Branch Address.
  • Official Account Holder Name (must match landownership records).
  • Account Number and IFSC Code, SWIFT code, IBAN code, CLABE, or similar.
  • Permanent Account Number (PAN), W-8BEN, or W-8BEN-E where required by local regulations.
• Verification Protocols: All banking and personal information must be verified within the app. Payments are only issued to the individual or entity legally listed on landownership documents.
• Payment Methods: All disbursements are made via electronic transfer to verified bank accounts in the producer’s local currency. Cash payments are strictly prohibited.

4. DISBURSEMENT TIMELINES

Payments are processed on a quarterly cycle, contingent upon Boomitra receiving funds from credit buyers.

Account Verification Deadlines: If an account is not verified when the processing cycle begins, the payment is automatically deferred to the next quarter.

Mid-Cycle Updates: Bank details updated less than one week before the processing date will not apply to the current quarter but will be active for the subsequent cycle.

5. REVENUE VESTING AND LONG-TERM STEWARDSHIP

To align with the timing of credit sales and encourage long-term environmental commitment, payments follow a vesting schedule.

• Vesting Rationale: This schedule supports project integrity, ensures continuous monitoring, and aligns with the multi-year nature of carbon credit sequestration and sales.
• Vesting Increments: According to the Credit Revenue Vesting Schedule, payments are distributed over a 5-year period:
  • Year 1: 50% of the revenue from Year 1 credits.
  • Year 2: 20% from Year 1; 50% from Year 2.
  • Year 3: 10% from Year 1; 20% from Year 2; 50% from Year 3.
  • Year 4: 10% from Year 1; 10% from Year 2; 20% from Year 3; 50% from Year 4.
  • Year 5: 10% from Year 1; 10% from Year 2; 10% from Year 3; 20% from Year 4; 50% from Year 5.

6. SPECIAL CIRCUMSTANCES & SUPPORT

• Transaction Fees: While Boomitra does not charge producers for making payments, any fees applied by the recipient’s bank are beyond Boomitra’s control.
• Succession Planning: In the event of a producer’s death, Boomitra requires a copy of the death certificate and verified details of the legal heir or next of kin to facilitate future payments.
• Non-Payment Resolution: If a payment is not received, producers should verify their app details and account status. If issues persist, they should contact their local project partner or Boomitra support.
• Tax Compliance: Earnings may be considered taxable income; producers are advised to consult local tax professionals. Payment records for tax filing are available for download via the app.