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Carbon Credits For Farmers: How To Get And Sell

Today’s initiatives, like the Paris Agreement, show that the world has become much more oriented
toward solving ecological issues than a decade ago. Carbon credits in agriculture are exactly the
tool created within such programs to motivate the farming sector to get involved in sustainable
agriculture. But what are CO2 offsets for farmers? How do they work? How do farmers get carbon
credits, and how can growers sell them to make a profit? This comprehensive guide delves into the
complexities of CO2 offsets and explains all points that may arise.

What Are Carbon Credits in Agriculture

Carbon credits for farmers are part of a market-based approach to promote the reduction of
greenhouse gas emissions. One carbon credit represents the right to emit one metric ton of CO2 or
the equivalent amount of another greenhouse gas (GHG). Farmers can earn these credits by
implementing sustainable agricultural practices that sequester SOC (soil organic carbon) in the soil,
reduce emissions, or both . When new agricultural practices reducing GHG emissions are
implemented, verified, and certified, farmers sell carbon credits and get a new revenue stream while
maintaining sustainable agriculture.

After generating carbon credits, farmers can sell them to buyers, including businesses and
individuals, who want to offset their emissions. These credits are traded on special markets, where
both sellers and buyers interact. Regardless of their specific reasons, buyers are looking to reduce
their emissions footprint, and landowners can provide an effective way to achieve this by producing
carbon credits.
Process Of Carbon Credit Farming

From the initial implementation of sustainable practices to farmers receiving payment for carbon
credits, several key stages must be completed. These include assessing the current level of carbon
sequestration in the soil and verifying the results of the practices implemented. Here’s a simplified
step-by-step guide about carbon credits for farmers focused on entering the specialized market and
obtaining credits with the help of a project developer:

 Find a Carbon Project Developer: Farmers usually start by locating a project developer who
can guide them through the buy and sell process.

 Provide Farm Information: Then, farmers share basic details about the farm, including
current practices, future plans, and the location of fields.

 Initial Estimation: The project developer uses farmer’s data to estimate how many CO2
offsets a farm could potentially generate.

 Implement Regenerative Practices: Farmers adopt additional regenerative farming practices,

 Data Collection and Monitoring: After a year or so, data on the effects of practices on the
farm can be gathered and analyzed to assess the amount of SOC sequestered.

 Third-Party Verification: A third-party expert collects, analyzes, and verifies the farm’s data.
To ensure accuracy, they might conduct a site visit or use remote sensing technology. The
verifier calculates the number of CO2 offsets earned.

 Sell Carbon Credits: Once verified, carbon offsets can be sold on the voluntary market,
providing farmers with a new revenue stream.
 Key players in the carbon
credit management chain for farmers.

How To Get Carbon Credits For Farms

Landowners usually participate in the carbon credit market by implementing relevant practices.
Several types of projects can help generate CO2 offsets for farmers:

 Enhance soil health and structure. Return biomass to the soil as mulch, adopt conservation
tillage or no-tillage practices, plant cover crops during the off-season to improve soil quality,
reduce evaporation, and support nutrient cycling.

 Optimize water. Upgrade to flood irrigation systems to recycle runoff water.

 Nutrient management. Implement nutrient management to maintain plant and soil health
with reduced reliance on chemical fertilizers and pesticides.

 Promote sustainable land use. Restore degraded soils, convert land into grasslands or
forests, and practice crop rotation to ensure abundant soil nutrients and transform open
areas into thriving ecosystems.

 Support carbon sequestration. Promote forest regrowth to capture and store CO2 within
trees and plants, contributing to climate change mitigation efforts.

 Reduce emissions. Switch to alternative fuel sources like lower-carbon biofuels and improve
manure management to enhance sustainability in agriculture. CO2 offset markets are playing
a key role in accelerating the transition from fossil fuels to renewable energy sources and
fostering a low-carbon economy .

Soil Organic Carbon Measuring

Discover a smarter way to measure soil organic carbon using our next-gen SOC modeling solution.

How Can Farmers Sell Carbon Credits And Get Paid

The quickest way for farmers to sell carbon credits is through online exchanges, which function
similarly to stock markets. High-quality credits that meet top registries’ standards generally
command higher prices. To participate effectively, farmers must find a relevant carbon credit
program and secure documentation proving land ownership and detailing land management
practices. This documentation is crucial for verifying the claimed SOC sequestration .

Before finalizing any contracts, farmers should conduct thorough research to ensure they receive fair
compensation for the credits. Reviewing the contract terms will help avoid overestimating SOC
sequestration, which could lead to future liabilities or undervaluation, which may result in lost
income. While brokers can assist in managing the sale of credits, they typically charge a commission,
so farmers must balance the benefits of professional help against the costs.

Farmers must navigate various payment structures and potential fees to sell and get paid for CO2
offsets. Payment methods may vary, including per acre, as a percentage of the profit from the sale,
a flat fee, or per ton of SOC sequestered. It’s crucial to thoroughly review contracts for details on
these payment methods and be aware of possible fees, such as:

 Brokerage fees: These are charged by aggregators for creating and managing the carbon
credits for farmers.

 Holdback amounts: Funds reserved to cover potential non-compliance or insufficient carbon

 Verification fees: Costs for verifying SOC sequestration through soil samples, models, or
satellite imagery.

What Are Farmland Carbon Credits Worth?

The value of carbon offsets can vary greatly, with some priced at under $1 per ton of CO2, while
others may exceed $50. A key determinant of these price differences is the specific nature of the
project involved.

EOSDA`s SOC And SOC-Related Solutions

EOS Data Analytics (EOSDA) offers innovative solutions to estimate the amount of carbon in the soil
before sustainable agriculture practices are implemented. We offer many high-technology solutions
that may be useful in generating carbon credits for farmers.

 EOSDA utilizes a top-notch algorithm to analyze soil testing data and model the SOC storage
in it. Regardless of the climatic and geographical conditions, we can handle relevant data
with maximum accuracy.

 EOSDA’s SOC solution can accurately forecast SOC levels by analyzing different field activity
scenarios, helping farmers optimize their practices for sustainable land management.
Utilizing EOSDA’s Variable Rate Application (VRA) Mapping enables landowners and farmers
to optimize nitrogen fertilizer application, thereby reducing the release of nitrous oxide
(N2O), a potent greenhouse gas.

 EOSDA employs advanced algorithms to detect the presence of cover crops in fields. This
technology allows farmers and project developers to verify that planned cover crop activities
are being executed, ensuring adherence to SOC sequestration practices.

 Tillage detection is a key strategy for carbon sequestration, making it essential to monitor
farmers’ tillage practices. Remote sensing technology allows for efficient and time-saving
monitoring without the need for physical inspections, enabling the detection of no-tillage,
minimal tillage, and conventional tillage practices on fields.

Find out more about Soil Organic Modeling, our custom solution that can be useful in the context of
a carbon credit program for farmers, or write to [email protected] for a detailed consultation.
Field map illustrating SOC storage.

The discussed practices offer farmers significant financial motivation to implement environmentally
friendly techniques to reduce GHG emissions, enhance soil health, and improve water retention.
Moreover, by using next-gen software solutions like EOSDA’s, farmers can reduce the costs of
implementing sustainable practices and perform the necessary monitoring of their lands. These
efforts provide the generation of CO2 offsets for farmers, which can then be sold on credit markets,
providing an additional income source and promoting regenerative agriculture.