Carbon Credits for Farmers
As many know there is a growing interest in letting farmers earn money for implementing practices that help sequester carbon. While this is a complex issue that has its pluses and minuses, we wanted to share a list of the companies & nonprofits offering these options so you can decide if engaging in the income benefits of Carbon Credits is right for your regenerative farm.
What are carbon credits?
Carbon credits are a form of payment designed to incentivizefarmers to reduce their greenhouse gas emissions. Each carbon credit represents one metric ton of carbon dioxide (or its equivalent in other greenhouse gases) that has been prevented from entering the atmosphere. Carbon credits can be sold on a carbon market or used by companies to offset their own emissions.
How Can Farmers Benefit from Carbon Credits?
Farmers play a vital role in reducing greenhouse gas emissions through regenerative agricultural practices, such as no-till farming, cover cropping, and rotational grazing. By participating in carbon credit programs, farmers can earn additional income by selling their carbon credits on carbon markets or to companies seeking to offset their own emissions. Carbon credits also offer farmers an opportunity to promote their sustainable practices and gain recognition for their contributions to combating climate change. Additionally, participating in carbon credit programs can help farmers access new markets and attract socially and environmentally conscious consumers.
Some Current Carbon Credit Programs
Grassroots Carbon - Program for grazers & ranchers, this program gives annual carbon credit payments. Currently farmers with 500 or more acres benefits from the program but we encourage smaller farms to sign up as well as they are able to work with smaller farms in the near future plus they have an assortment of great resources for grazers. Learn more here.
Regen Network - is a nonprofit organization working to integrate blockchain technology & carbon credits. Their program is still emerging but you can get on their list to be considered for projects here. Steward Intake Form.
Nori - is a US based similar blockchain tech system. This program is live an accepting applications and boasts transparency and high income back to the farmer directly. This program is specifically for those in crop production. Farms with 450 acres of crop production that have transitioned to regenerative practices since 2011 are eligible for credits. Learn more here.
Indigo - is a large, currently functioning organization. On average, farmers are estimated to generate 0.2-1 credits per acre, $15 per credit, in their first year and increase credit production over time. Mainly focused on large scale crop production farms willing to reduce tillage and implement cover crops. Learn more about Indigo here.
CarbonNow Locus Program - boasts more straightforward, faster payments for farmers. This is another program focused on no-till, cover crop operations. Check out more details here.
Bayer - incentivizes no till and cover cropping. Program’s are not very clear so we recommend doing more research with them directly to see if this is right for your farm. Learn more about their program here.
Nutrien - appears to be specifically for large scale growers in their network and in specific states. Might be suitable for large scale operations. Learn more here.
ESMC - is another nonprofit working to compensate farmers. They are currently only working in specific regions in the midwest. Visit their page here to learn more.
