Emerging Carbon Opportunities
Carbon, and agriculture’s role in carbon markets, is a hot topic for discussion as opportunities emerge. However, information about carbon markets can be challenging to navigate as individual companies typically have unique payment, verification, and data ownership structures. Missouri Corn and Missouri Soybean have teamed up to provide useful information to help Missouri farmers make informed decisions before enrolling in a carbon program.
What is a carbon credit? A carbon credit represents the avoidance of one metric tonne of carbon dioxide equivalent (CO2e) into the Earth’s atmosphere. Credits are a non-tangible carbon-based asset that can be earned, deposited, sold, or traded. Carbon credits are generated by farmers when they enroll in certain carbon programs and adjust management practices that lead to increased soil carbon within their fields (i.e., carbon sequestration) or decreased carbon emissions from their farms. Both private and non-profit companies have developed agricultural carbon market programs that aim to reduce overall U.S. carbon emissions through the trade of carbon units sequestered at the farm level. The sale of carbon credits presents an opportunity for farmers to receive financial benefits from farming practice changes that produce environmental benefits.