How Can a Farmer Sell Carbon Credits?
Agricultural carbon credits are a way to offset greenhouse gas (GHG) emissions. They are based on the amount of carbon sequestered in a farm's soil. They are typically sold in credit markets. These markets are being developed to attract environmentally conscious investors and consumers.

carbon.credit
One way farmers can generate carbon.credits is by planting cover crops. Planting cover crops helps farmers reduce fertilizer use and carbon-intensive nitrogen fertilizer. Farmers can then sell their carbon credits in the carbon market. It can take up to eight to twelve months for the credits to be listed.

In some markets, farmers are paid a per-ton rate, based on the amount of carbon sequestered in their farm's soil. Some farmers are also eligible to receive payments for no-till practices, which help to store carbon underground. Other farmers could receive Payments for improving nitrogen timing, which helps to increase the amount of carbon that is sequestered in soil. The price of carbon credits is expected to rise as demand increases.

Carbon markets are designed to reduce greenhouse gas emissions by attracting environmentally conscious consumers and investors. Farmers can participate in these markets in two ways: they can sell their carbon credits to companies, or they can enroll in programs to earn bus payments for reduce GHG emissions.

Indigo Ag is a Boston-based startup that launched a farmer carbon marketplace. The company measures the amount of carbon sequestered in a farm's soil and then sells its credits to companies, such as The North Face and JPMorgan Chase. The company also works to improve the efficiency of fertilizer and tillage practices. It provides a MRV (measurement, reporting, and verification) system for farmers to track the progress of practice changes. Its software is easy to use and can be combined with remote sensing to track carbon drawdown.

The Terraton Initiative launched by Indigo last summer seeks to sequester one trillion tons of carbon dioxide in soil. The company will work to capture emissions and will pay farmers who plant cover crops, reduce nitrogen fertilizer, and avoid tilling. These strategies are proposed to farm soil carbon and to increase farmers' revenue. The company does not guarantee that agronomic outcomes will improve. However, it will use specific assumptions and baseline data to make its payment determinations.

The company has contracted with several thousand farmers to participate in its program. The amount of money they will receive is determined by how much carbon is sequestered in their farm's soil and how much the current carbon credit market price is.

Farms can also participate in voluntary carbon markets, which are based on corporate sustainability reporting or government-imposed limits on GHG emissions. These markets are usually incentive-based, meaning farmers are paid a per-ton fee if they meet the minimum pay program's However, there are some legal obligations associated with participating in these markets. For example, buyers must test the quality of the farm's carbon credits. It's also important to have an independent verification body that can verify the carbon credits.