How Carbon Credits Work for Farmers and Ranchers

This is Tim Hammerich of the Ag Information Network with your Farm of the Future Report.

Some ranchers and cattle producers have found a new revenue stream: selling carbon credits. One of the companies offering these credits is Agoro Carbon Alliance where Ashley Bruner is the Global Marketing Communications Manager.

Bruner… “We're the industry leader when it comes to carbon across the United States with opportunities for ranchers and cattle producers. The only one that's completely input agnostic. We don't sell any other products or services, only ag carbon credits."

Bruner explains how the carbon credit process works for producers.

Bruner… "It's a 10 year contract with farmers and ranchers based around practices for farming: reducing tillage, adding cover crops, and managing nitrogen. For ranchers, it's rotational grazing, biodiversity or seeding and actually fertilization on those practices. For those, we offer two different payment options. One is a prepayment option where you get paid early on to help you offset some of the costs of those practice changes. And then a second option, which is a lot of farmers and ranchers are doing these days: betting on the future. Which means you get paid later on in years five and 10 in the contract, assuming the price of carbon's going to go up. But that's completely up to the farmer and rancher to decide what's most appropriate for their operation."

Learn more at AgoroCarbonAlliance.com.