Funded by the Illinois Soybean Checkoff
Conservation That Makes Cents:
Understanding Carbon Markets
might want to use cover crops to help keep expensive nutrient applications in their field, while others might be investigating the use of no-till because of its potential to reduce labor. The Illinois Sustainable Ag Partnership (ISAP) recently collaborated with ISA to develop a guidebook introducing famers to soil health practices by demonstrating how they could address problems on their farm. Setting a goal is critical for farmers to evaluate the success of the conservation practices they implement, encouraging growers to maintain practices past the availability of incentive funding. Implementation and continuation of conservation practices is vital for Illinois farmers to meet Illinois Nutrient Loss Reduction Strategy goals, lower carbon intensity of grain and maintain profitability. A trusted conservation agronomist can help you evaluate your operation, set your conservation goals, implement new conservation practices and even explore potential conservation funding programs around the state. Visit the ISAP website to review their Conservation Story Map and find an agronomist or nearby farmer with conservation expertise to help you on your conservation journey. Once you know your conservation goals and have a plan for implementing your conservation practices for the first time, review the different incentive programs around the state. ISAP has developed both a carbon market comparison table and a cover crop incentive directory to help farmers understand the opportunities around the state.
by Megan Miller Whether it is a carbon market, a USDA Partnerships for ClimateSmart Commodities program, or a federal/state conservation program, there are plenty of opportunities for farmers to reduce the financial risk associated with the implementation of new conservation practices. As of this past summer, there were 15 carbon and ecosystem services markets available to Illinois farmers. Additionally, over 20 Partnerships for Climate-Smart Commodities programs are scheduled to start in Illinois in 2024, and the federal government has earmarked funding from the Inflation Reduction Act for NRCS conservation programs such as EQIP and CSP. These programs incentivize reducing tillage, adding cover crops, reducing fertilizer rates or adjusting fertilizer timing with the goal of reducing greenhouse gas (GHG) emissions and increasing water quality. Although most of the programs publicly address carbon, they are actually accounting for the reduction of all GHG emissions, such as nitrous oxide, and calculating the reductions in terms of carbon dioxide equivalents. Before enrolling in any of the programs available, the most important thing farmers can do is outline their conservation goals. Some farmers
10 February 2024
As you review this resource, pay attention to the contract length and how that compares to any leases you might have. Some programs require a letter from a landowner for farmers to enroll. Also, ask your market representative or program manager how the carbon market is funded. It is important to understand if the program receives private, federal or state funding. Remember, you can’t sell a carbon credit to two different programs, and you can’t receive multiple sources of federal and state funding for the same practice on the same acre. You can, however, stack private and federal money. ISAP has developed a stacking matrix to help growers understand how they can maximize their funding for cover crops. The funding source can also impact your payment schedule. Some programs work on a reimbursement basis; some programs pay after practice implementation verification, and some programs pay over a multi-year vested schedule. After you’ve selected a program, you will need to provide historic and current field management information as well as plans for future conservation practice implementation. Because of the high cost of soil sampling, all carbon programs use models to estimate sequestered carbon or avoided emissions. The ISA Agronomy Team developed a Carbon Data Guidebook that outlines the data and field information needed for carbon market enrollment. Always ask your program representatives how the data provided will be used. (See Conservation That Makes Cents, page 12)
