by Alejandro Plastina, extension economist and Oranuch Wongpiyabovorn, postdoctoral research associate
Center for Agricultural and Rural Development (CARD), Iowa State University
Alejandro PlastinaA growing number of private initiatives are offering producers compensation for the generation of agriculture carbon credits as well as other ecosystem services such as improvements in water quality. Credits and ecosystem services are purchased by large corporations and other entities pursuing a reduction in their environmental footprints.
Some private and public entities are already purchasing carbon credits generated outside agriculture to comply with environmental regulations and to improve their appeal to environmentally-conscious stakeholders.
Oranuch WongpiyabovornHow to Grow and Sell Carbon Credits in U.S. Agriculture compares the requirements to grow and sell carbon and environmental services credits across 17 private voluntary agricultural initiatives in the United States. The side-by-side comparison of the 17 initiatives is organized into three groups, corresponding to Tables 1-3: payments per output, payments per practice, and mixed payments.
To read that report click here.
A companion publication, AgDM File A1-77, How do Data and Payments Flow through Ag Carbon Programs?, presents flowcharts to show the direction data, payments, methods, and carbon credits move within each carbon program.
To read that report click here.
To evaluate the net returns to a carbon farming contract, for various states, see AgDM File A1-78, Net Returns to Carbon Farming. To read that report click here.
Additional resources on Carbon Markets can be found on the Ag Decision Maker webpage Carbon Market Information.
