Q&A: Agricultural Carbon Markets Agricultural carbon markets present opportunities for farmers to be paid for practices that sequester carbon. Before agreeing to any carbon program contract, you should make sure you understand all the program requirements, have all your questions answered regarding these developing markets and discuss the program terms with your trusted advisors. You should start your decision-making process by asking these fundamental questions:
1. W hat practices are covered under the agricultural carbon market program? Most programs include reduced till, no-till, cover crops and nutrient use practices. 2. W hat are the program’s additionality requirements? Programs typically only allow growers implementing a new practice or expanding an existing one to additional acres for the first time to enroll for the sake of complying with the “additionality” requirements sought by registries or offset end-users. Programs paying farmers for a practice they adopted in prior years are rare. 3. C an the carbon program be stacked with other programs? Private voluntary carbon offset programs do not allow the same acres to be enrolled in multiple carbon offset programs. However, some programs do allow farmers to enroll the same acres in other cost-share initiatives that are not directly related to carbon offsets (e.g., a water-quality program). 4. A re there requirements for land ownership or control? Some programs require ownership of contracted land or some other way of ensuring the land cannot easily change renters for the length of the contract.
TWO TYPES OF CARBON MARKETS In practice-based programs, farmers are paid for implementing specific practices across their acres. These programs come with less risk to the farmer, but also less upside potential. In outcomes-based programs, farmers are paid based on the amount of carbon sequestered. These programs offer more upside potential for farmers, but also more risk.