Farmer Sell Carbon Credits
Practicing regenerative agriculture is a great way to reduce your greenhouse gas emissions and help your farm become more sustainable. But it can be a challenge to get the most out of your regenerative practices, especially when you’re still trying to make money. Thankfully, there are a few companies that can help you sell carbon credits that you’ve helped sequester on your land.
A Boston-based for-profit carbon sequestration startup, Indigo Ag guarantees farmers who sign up in 2019 $15 per tonne of CO2 that they sequester. Lance Unger, an Indiana family farmer who joined the company, said he earned about $52,000 in the first year of his contract and expects to make more as carbon.credit prices rise due to higher demand.
A popular regenerative agriculture practice, cover cropping allows you to reduce tillage and improve soil health without impacting your yield. It can also add organic matter to the soil, which helps it retain more nutrients and water. Regenerative agriculture can be expensive and time-consuming, so it’s important to find ways to incentivize farmers to do it. One way is to allow them to sell the carbon credits they generate through regenerative practices, similar to how you can buy a green house gas emission certificate or offset.
How Can a Farmer Sell Carbon Credits?
The United States Department of Agriculture (USDA) has announced that it will begin buying carbon credits from farmers. That will give them access to the funds they need to implement new farming and forestry practices that can reduce their greenhouse gas emissions. However, critics point out that the government-managed credit trading program could crowd out private markets. It would also require Congress to approve tax legislation, which might be difficult in a divided Congress.
In addition, some critics argue that it will be difficult for a government program to police the credit trading market and ensure farmers don’t overextend themselves. That’s why some experts suggest private carbon markets are a better way to achieve emissions reduction goals.
A new company called ESMC is investing in faster, cheaper technology to help new players in the market navigate its complex rules and regulations. ESMC plans to have several pilot projects underway in the Southern Plains and Corn Belt in 2020, and plans to open a broad-based private carbon market in 2022.
There are many different carbon credit programs out there, but the best one for you is the one that works well for your farming style and location. The best ones provide you with ideas, tools, and support as you work on reducing your carbon footprint.
You can also work with your local carbon program or company to earn carbon credits. They’ll guide you and help you find the right solutions for your farm, including soil sampling, which is crucial for determining which practices are best for your specific farm. A good partner will also make your journey to carbon farming less stressful. They’ll give you tips and tricks, share their expertise with you, and help you develop a strategy that will work best for your business.