Carbon Programs Gaining Traction
When it comes to paying farmers to sequester carbon, the industry is still in the early days of figuring out how it all work and just how much money farmers will get compensated. But Indigo Ag’s Head of North American Carbon Commercial Heather Gieseke says that in their program, pricing and participation are both on the rise.
Gieseke… “Today we have nearly 2,000 farmers across 30 states that have enrolled almost five million acres, giving participating farmers in the program the ability to truly generate a new annual income stream on their farm in the form of agriculture carbon credits.”
Gieseke claims that Indigo has more buyers of their carbon credit than they have farmers in the program. But just how much are farmers receiving for transitioning to regenerative practices?
Gieseke… “When the program launched, Indigo had secured commitments from buyers at $20 per credit, and this was back in 2019. Shortly after, it advanced to $27 per credit. And now, Indigo AG has announced that it’s secured future credit-purchase commitments at $40 per credit. As the price of credit goes up with Indigo Ag’s program, the price the farmer gets is going to continue to go up as well. So, there's just tremendous opportunity there.”
The number of credits a farmer can generate will depend on a number of site-specific factors.