A Purdue University Center for Commercial Agriculture poll indicates more than a third of farmers across the Corn Belt are aware of carbon credit markets.
Plus, many people are waiting to see if USDA will step in, perhaps acting as the sheriff to tame a Wild West scenario in terms of current carbon markets.
First, should you pay attention? With the focus on environmental issues these days, we believe the answer is a resounding yes.
Second, should you consider participating in carbon markets today? Nathanael Thompson, a Purdue University Extension ag economist, framed an answer in easy-to-understand terms during the recent Purdue Top Farmer Workshop session on carbon credits.
Thompson says that’s because markets are built around the principle of additionality, meaning someone willing to pay for carbon credits expects someone to make changes to sequester carbon not sequestered before.
Only one program we know of so far, CarbonNow from Locus Ag, pays people already doing these things to participate, and that program requires buying one or more of their biological products.
Chasing carbon credits.
Well said! If you get into no-till and cover crops just to chase a $10-per-acre payment, you could likely invest far more than $10 per acre in both upfront and annual costs.
If you’re ready to move into no-till and cover crops because you think it’s the right thing for your farm, and you’ve done your homework, then carbon credits might just be icing on the cake, Thompson says.