Carbon refers to carbon dioxide (CO₂), which is the most common greenhouse gas (GHG) emitted by human activities. Land-use innovations have created an efficient way to sequester carbon dioxide in the soil. CO₂ is naturally stored, or sequestered, in plant biomass or soil. Tilling the soil or removing plants that store carbon in their tissues releases stored carbon.

A company’s carbon footprint is the quantity of carbon emissions that were produced as a result of its operations. Carbon neutrality is achieved by reaching net-zero carbon dioxide emissions, or when the amount of carbon created (emissions) equals the amount of carbon captured (offsets).

Agriculture is a relatively young sector in carbon markets. Farmers play a role in carbon sequestration through the agricultural management activities they use on their farms. A few practices that may sequester carbon are cover crops, reduced/no-tillage, and precision nutrient management.

A carbon program allows individuals and companies to invest in environmental projects that reduce carbon emissions. For farmers, these programs facilitate the sale of the carbon credits/offsets that farmers generate through practices like reduced/no-tillage and cover crops.

What companies pay for varies by program – some will pay for practices, but most are paying for outcomes, or the amount of carbon that has been proven to be sequestered.

Variables that can be included in determining this outcome are not just acres enrolled, but also practices such as cover crops, reduced/no-tillage, and precision nutrient management.

The farmer is the only one who can make this decision. Each program has its own rules and requirements, but some general points to consider include:

• Carbon programs require a commitment to a land management change for the long-term
• Carbon programs work best when they fit overall land management goals and result in multiple benefits
• Ensure your land can meet all eligibility requirements of the carbon project you are considering
• Enter carbon markets with realistic expectations of carbon revenue potential and costs over the full project life

The number of credits a farm will produce will vary depending on current practices and the history of practices the farm has used. Different carbon programs may also use different tactics to measure outcomes.

There are various tools that can model the expected sequestration for each practice and combination of practices including The Cool Farm Tool and the COMET-Farm Tool.

The current price for carbon ranges from $10-20 per ton per acre. However, the prices depend on the carbon program and the buyer. See this chart to compare the current estimated pricing for programs available in Ohio.

Early adopters that have already implemented conservation practices may or may not be eligible for carbon credits. Payments for these early adopters and historical practices will depend on the carbon program. Keep in mind, these programs are in the early stages of development and could change in the future.

Currently, companies are buying carbon credits resulting from new practices that draw down current emissions, not past emissions, with the goal to reduce carbon from current levels. Past sequestration of carbon does not help them reach their carbon reduction goals. Programs want to baseline and track carbon that is actually sequestered and they have no way of measuring that data from past practices. It is believed that carbon produced today needs to be offset from today.

Different programs have different standards for how long the carbon pool must be maintained. Some programs deduct money from the payment to account for potential non-permanence. Some programs develop an insurance bank to manage non-permanence risk. Permanence assumptions and characteristics will affect the price that will be paid. This would be a good question to ask before enrolling in a program.

You can participate in carbon programs with rented land. Each program may have different requirements for enrolling rented land into the program, so be sure to understand what is required. At least one program available in Ohio requires written approval from the landowner. It is important to let landowners know of participation to avoid any issues in the future.

In general, once a farmer has implemented a practice and used it to participate in a carbon program, the ability to participate in another program is limited. If a farmer stops a practice and no longer participates in a program, it is unclear how much time must lapse before the farmer can re-implement that practice and receive payments from another program.

Farmers will need to provide information about the fields enrolled in a program, such as past and present data about practices such as crop rotation, planting, fertilizing, irrigation. The number of years of data that will need to be provided depends on the program.

Data needed to enroll in carbon programs includes current and historical data about crop rotation, planting, fertilizing, irrigation.

Carbon outcomes can be measured in a variety of ways that will generate their own data, including practices like soil sampling. Make sure you know what data is being collected, how it is being used, and who can see it.

There are three groups who could benefit from sequestered carbon – the seller, the buyer, and the verifier and broker.

The Seller: This is farm and forest landowners. In some cases, this could be the renter, but the value of soil carbon as a commodity will likely benefit the landowner.

The Brokers & Verifiers: The broker usually doesn’t take ownership of carbon credits but helps facilitate the transaction in exchange for a commission. The verifiers evaluate the calculations of the actual amount of carbon reductions that have been avoided or sequestered through the implementation of the practices.

The Buyer: This is the company that has committed to carbon reduction and neutrality goals.