Sustainability
These programs are best suited for farmers prepared to commit to ongoing monitoring and third-party verification.
State-Level Carbon Payment Programs
California is currently the only state with a dedicated carbon payment program for agriculture. The California Healthy Soils Program offers grants to farmers implementing carbonsequestering farm practices, such as cover cropping, compost application and reduced tillage.
While other states may offer conservation incentives through broader sustainability programs, they do not currently have standalone carbon credit initiatives. Farmers should check with their state’ s agricultural and environmental agencies to stay informed about emerging opportunities. is an ongoing process rather than a one-time event, with some programs requiring continuous monitoring and third-party verification for the duration of the contract, which can often extend beyond 10 years. Programs often include baseline soil sampling and periodic testing, offering valuable insights into soil health. Some contracts extend for 10 or more years and can potentially provide stability and ongoing financial opportunities for those committed to sustainable practices. However, for most farms, carbon credits should be seen as a supplemental income stream rather than a primary source of revenue.
Top Carbon Payment Programs for Farmers
Several programs offer payment options for farmers willing to adopt climate-smart practices. These fall into private carbon marketplaces and state-based programs.
Private Carbon Marketplaces
Private companies connect farmers with corporations seeking to purchase carbon credits. These programs require verification and typically involve long-term contracts.
• Indigo Carbon( Indigo Ag): Pays farmers per verified ton of CO2 stored, requiring soil data collection.
• Nori: Offers a one-time payment per ton of carbon sequestered.
• Bayer Carbon Program: Provides financial incentives for adopting conservation practices but does not guarantee carbon credit sales.
• Truterra( Land O’ Lakes): Assists farmers in evaluating conservation practices but does not directly facilitate carbon credit transactions.
• Ecosystem Services Market Consortium: Works with farmers and ranchers to provide environmental credits for carbon sequestration and water quality.
• Soil and Water Outcomes Fund: Pays farmers for implementing conservation practices that generate carbon and water quality improvements.
• Regen Network: Focuses on regenerative farming practices and offers carbon credit opportunities for farmers.
5 Steps to Get Paid for Carbon Farming
• Evaluate Your Land’ s Carbon Potential Check if your current practices align with carbon credit requirements. Some programs only pay for new conservation practices, so farmers already using no-till may not qualify.
• Compare Programs and Contract Terms
Avoid long-term commitments without reviewing market risks. Some contracts require 10 or more years of practice verification before full payments are made.
• Get Verified( Soil Testing and Data Collection) Many programs require baseline soil sampling to measure carbon levels. This step can take months to years before credits are issued.
• Implement Climate-Smart Practices
Adopt cover cropping, rotational grazing or no-till as required by your chosen program. Keep detailed records of planting, fertilizer use and soil health improvements.
• Sell Your Carbon Credits Once verified, your credits enter the market, where companies purchase them. Payments depend on carbon pricing trends and buyer demand.
Where to Learn More
For farmers interested in exploring carbon markets further, there are several resources that provide valuable guidance and up-to-date information:
USDA Climate-Smart Agriculture & Forestry Initiative: Offers insights into government-supported programs.
Ecosystem Services Market Consortium: Provides information on environmental credit markets.
American Farmland Trust: Publishes reports and guides on agricultural carbon markets.
Carbon Market Learning Hub by Iowa State University: Offers educational materials for farmers navigating carbon markets.
Farmers are also encouraged to consult with advisors, agricultural extension offices or conservation organizations before committing to a program.
Evolving Carbon Markets Require Caution Carbon farming offers an opportunity to earn additional income while improving long-term soil health. Before signing up, farmers should carefully review program structures, assess the financial implications and seek expert guidance to ensure that participation aligns with their long-term business goals.
June 2025 | www. FarmersHotLine. com | 21