Sustainability

By Rachel Witte

For farmers, profitability and land stewardship often go hand in hand. With carbon farming, landowners can get paid for improving soil health while contributing to climate goals. But is it worth the effort? While carbon credit programs can promise financial incentives, understanding how they work and whether they fit into a farm’ s operation is key.

How Carbon Credits Work

Carbon credits function as a tradeable asset, representing one ton of carbon dioxide( CO2) removed from the atmosphere or prevented from being released. Companies looking to offset their emissions purchase these credits, creating a market where farmers can get paid for carbon sequestration efforts.

There are two main types of carbon markets: regulated( compliance) markets and voluntary markets. Regulated markets, such as California’ s Cap-and-Trade program and the Regional Greenhouse Gas Initiative, require certain industries to reduce emissions or purchase credits to comply with government mandates. Voluntary markets, on the other hand, are driven by corporate sustainability goals and offer farmers opportunities to sell credits to businesses looking to offset their environmental impact.

The primary way farmers earn these credits is by adopting conservation practices that enhance soil carbon storage. Practices such as no-till farming, cover cropping and rotational grazing are recognized for their ability to pull carbon from the air and store it underground. Some programs also compensate for methane reduction strategies, including improved manure management.

Once enrolled in a carbon program, farmers undergo verification processes to ensure that their practices are capturing carbon effectively. After meeting these requirements, they can sell their carbon credits in voluntary or compliancebased markets.

How Much Can Farmers Earn?

The amount farmers can earn depends on the program, region and soil type. Carbon credit prices fluctuate based on market demand, verification costs and the amount of carbon sequestration achieved.

According to recent reports, most agricultural carbon credits trade between $ 15 and $ 30 per credit, with payments ranging from $ 1 to $ 34 per acre depending on the program structure. However, farmers should be aware that earnings may not always cover the costs of implementation and verification. Farmers exploring these programs should plan for a structured process that ensures long-term benefits. Verification

20 | 515-574-2206 | 515-574-2189 | June 2025