The demand for agricultural carbon credits is expanding rapidly, but for those looking to participate, the landscape can seem daunting. With a multitude of guidelines, methodologies, and certification programs, some experts even call it a “jungle of certification schemes.” Understanding the structure of this market, and the key players involved, is the first step toward navigating it effectively, especially within the specialized field of agriculture.
The Framework of Carbon Verification
To bring clarity to the carbon credit market, it helps to understand its layered structure. Projects are not developed in a vacuum; they are guided by a hierarchy of rules and oversight.
Quantification Frameworks
At the highest level are broad frameworks that provide useful guidelines for the development of both projects and certification programs. The most recognized international frameworks are the ISO 14064-2 standard and the GHG Protocol.
Protocols and Methodologies
Based on these overarching frameworks, specific protocols (or methodologies) are created for different types of carbon offset projects. A methodology for sustainable grassland management, for example, will have different rules and requirements than one for capturing landfill gas.
Certification Programs (Standards)
These programs, often referred to as “standards,” serve the crucial role of certifying that claimed emissions reductions have genuinely occurred. Ultimately, these standards are the ones that issue carbon credits.
Key Standards in the Voluntary Carbon Market
High-quality voluntary carbon credits are defined by their adherence to strict standards. The most reliable credits are registered with internationally recognized, independent verification bodies. While many exist, a few dominate the voluntary carbon market:
- Verra – Verified Carbon Standard (VCS): Founded in 2006, VCS is the most widely used standard in the world, representing around 47% of the market. Verra oversees a variety of programs related to sustainable development and climate action, and has recently published a methodology for biochar.
- Gold Standard: Originally created by the WWF and other NGOs, the Gold Standard is known for its rigorous requirements regarding co-benefits. It mandates that projects contribute to the socioeconomic development of the host country and actively involve local populations.
- Climate Action Reserve (CAR): CAR has its own eligibility criteria for projects, which must be located in the U.S. or Mexico. It does not certify projects involving fossil fuel switching (e.g., coal to natural gas).
- Puro.earth: This standard focuses on industrial-scale carbon removal credits. To qualify, carbon must be stored for a minimum of 100 years.
A Deep Dive into Agricultural Carbon Programs
The agricultural sector has seen a surge in dedicated programs designed to compensate farmers for adopting practices that reduce greenhouse gas emissions or promote soil carbon sequestration. These initiatives differ in goals, eligibility criteria, data requirements, and contracts.
Corporate Carbon Offset Programs
Many corporations have launched their own carbon offset programs, either to meet internal climate goals (insetting) or to sell credits on the market (offsetting).
- Bayer Carbon Program: Farmers are paid on a per-hectare basis for implementing practices like no-till farming and cover crops. The program requires a 10-year contract, plus an additional 10-year period after the program ends during which the practices must be maintained.
- Corteva: This platform allows farmers to register to implement practices that sequester carbon. Carbon is measured by Indigo and certified under the CAR protocol. Farmers can be paid around $15 USD per acre for making the switch.
- Land O’Lakes (Truterra): Through its Truterra Insights Engine platform, this program pays farmers $20 per ton for carbon they have sequestered in the past five years. It requires a 20-year commitment for data reporting on the platform.
- Rabobank – Acorn: This program supports farmers in transitioning to agroforestry by helping them generate carbon credits from planting trees. Verification is performed using remote sensing technology and AI to monitor tree growth. Credits have a durability period of at least 20 years.
- Cargill RegenConnect: An “insetting” program where farmers are paid per ton of carbon sequestered for adopting new practices. The price is adjusted annually based on carbon market fluctuations.
Government-Funded and Regulated Programs
Some programs are linked to government funding or regulated markets.
- Solutions agricoles pour le climat (Canada): This Agriculture and Agri-Food Canada fund helps producers adopt beneficial practices in nitrogen management, cover cropping, and rotational grazing.
- Carbon Credits (Carbon Farming Initiative – Australia): This regulated system allows farmers to earn credits for changing agricultural practices to increase soil carbon.
- Label Bas Carbone (France): This initiative helps value the emissions reductions that result from modifying farming practices in large-scale crop cultivation.
Why Agricultural Carbon Credits Matter
For many stakeholders, carbon credits for farmers are not only a financial incentive but also a pathway to scaling regenerative practices, improving soil health, and meeting global climate goals. The credibility of these initiatives depends on robust methodologies, trusted standards, and verifiable outcomes.
The landscape of agricultural carbon credits is undeniably complex, but it is also structured. For farmers, landowners, and credit buyers, understanding the differences between frameworks, standards, and programs is essential to making informed decisions and engaging in credible, high-integrity initiatives.
