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How much does carbon farming pay
Summary: See how you can earn money with carbon farming, both through carbon payments and increased profitability.
Ask anyone about the benefits of carbon farming, and increased profitability is sure to be on the list. That profitability boost depends on a variety of factors like where you live, what carbon farming practices you incorporate on your operation, the types of crops you plant, the market price of carbon credits, and even what other farmers in your area commonly do.
But, you don’t have to settle on “it depends” for your answer.
Ultimately these carbon payments are based on carbon credits produced. Indigo Ag first calculates the expected impact of carbon farming practices like planting cover crops and reducing tillage. The models determine how much CO2 is sequestered or avoided. One ton of C02 = 1 credit. Then the credits are multiplied by the expected carbon credit value.
Remember though, for you to start sequestering carbon and producing credits, you must be starting a new practice (like introducing cover crops) or enhancing an existing practice (like moving from a single species to a multi-species cover crop mix).
That’s the secret behind the Carbon Calculator. It’s determining the average amount of carbon removed or abated based on the practice changes you select across many different soil types for geographies in and around your location. The Carbon Calculator’s estimated payment is based on an average range of what growers with the same intended practice changes, in counties like yours, can earn. Depending on your baseline practices, exact soil type, and portfolio of management practices, your actual sequestration potential may be higher or lower than the estimate shown.
And while we must point out that these are estimates, we must also point out the unlimited upside potential for payment through Carbon by Indigo. Carbon by Indigo offers a revenue share where growers will always get at least 75% of the carbon credit sale price. So, the higher credit sale prices, the more you earn.
While payments are part of the profitability equation, it’s not the only thing to consider. High input costs matter too. Carbon farming practices like incorporating cover crops and reducing tillage not only help you manage those inputs and solve soil health problems, but they’re also two of the most highly impactful carbon farming practices.
