Title

Agriculture Carbon Credit Programs

(EC2273, August 2025)
Summary

Carbon credit programs provide farmers with payments in exchange for adopting (and providing documentation of) practices that store soil carbon or reduce emissions. These credits are typically sold to large corporations (e.g., Google, Microsoft, FedEx) looking to “offset” their emissions and/or demonstrate a commitment to sustainability to their customers and investors. Farmers are often required to submit soil tests, provide receipts and documentation and work with third-party verifiers.

Lead Author
Lead Author:
Matthew Gammans, Assistant Professor in Ag Policy
Availability
Availability:
Web only
Publication Sections

What’s Involved?

  • Contract: Outlines practices to be changed
  • Documentation: Demonstrates that practices were changed
  • Scientific model: Converts changed practices in carbon reductions.
  • Soil Testing: Sometimes used to “ground-truth” model results
  • Price: What will the market pay for these carbon reductions?
  • Payment: Compensation to the farm
Example
Program #1
Example
Program #2
Example
Program #3
Example
Program #4
Current price (can vary substantially)$45/ton($6 to $24/acre for cover crops)$6/acre for reduced-till/no-till/strip-till and $6 for cover crops$30/ton (per acre payments depend on soil testing)Minimum guarantee of $20/ton
Eligible practicesCover crops, no-/reduced-till, N managementCover crops, no-/reduced-till, N managementStrip/no-till and/or cover crops on corn, soy, wheatCover crops, no-/reduced-till, pasture/range grazing
Contract length5-year renewable5-year renewable + 10-yr retention1-yr contract + 5-yr reporting10-year contract
Already adopted a practice?Not eligiblePractice must be adopted after August 15, 2019Practice must be adopted before 2021 with documentation showing practice continuityNot eligible
Available in North Dakota?YesYesYesYes

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