Carbon Markets 101
What are carbon markets?
Carbon programs are one way farmers can get paid for cover crops, no-till, and other in-field practices that sequester carbon in the soil. Sequestering carbon is technical terminology for capturing carbon dioxide from the air and locking it underground. Carbon programs usually privately funded by companies who are trying to lower their environmental impact of greenhouse gas emissions through insets or offsets.
Many times, carbon sequestering practices also improve water quality. That’s why we’ve put together a landing page of outside resources that can help you navigate programs.
USB’s Carbon Market Toolbox
The United Soybean Board has a thorough toolbox of carbon information. It includes an introduction to carbon markets, frequently asked questions, a glossary of terms, and contract considerations to know about before deciding on a program.
Iowa Corn Promotion Board Grower Guides
Iowa Corn offers great overviews of different carbon topics including the basics of carbon markets, a carbon Q&A, and a guide to protecting your farm data. Visit their website to learn things like how the carbon cycle works, how cover crops and conservation tillage sequester carbon, and how carbon markets are expected to grow in coming years.
USB’s Carbon Program Comparisons
If you’re ready to start shopping around, the United Soybean Board has also put together a comparison of available carbon market programs, organized by important factors like contract length, eligibility, and verification process. We recommend this as a launching point for further research.
Insets vs Offsets: What Farmers Need To Know
Farmers who are interested in learning about carbon markets should know the difference between carbon insets and offsets. These are two ways that companies offer payment for carbon sequestration. Farm Progress gives a thorough comparison in this article.
Top 10 Things You Wanted To Know About Carbon Markets
This one is a long read at 40 pages, but this guidebook created by American Farmland Trust offers answers to key questions farmers have about carbon markets including, “How do I know which carbon market is right for me?” and “What information and access do I have to provide?”
Costsharecompare.com
This IAWA-created resource shows you how much different programs will pay. It has some carbon market programs in it, but it also includes public funding. This is a great way to compare important details of different types of programs in Iowa!
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