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Economist’s Angle: Carbon Market Snapshot

Apr 06, 2021

By Scott Gerlt  • ASA Economist

The following information provides a snapshot for crop producers of the carbon market landscape as of April 2021. Most of the current opportunities are for pilot projects and are not operating fully as a market at this point. Payment amounts vary and can be practice-based (with a fixed amount paid for adoption of certain conservation practices) or outcome-based (providing either a guaranteed amount per acre, or an amount based on the quantity of carbon sequestered as estimated through models or measured in soil tests). The information below should help when considering options but will change as the markets evolve.

Carbon Market Snapshot

*Enrollment is closed for the current TruCarbon program. Details about the new offering are forthcoming.

Note: Nutrien has announced a carbon program, but the details are unavailable.

For questions that can be asked before signing up, visit TruTerra.

For reference, Nori suggests using 0.2 to 1.5 tonnes of annual carbon dioxide sequestration per acre as a rule of thumb for recently adopted practices such as no-till or cover crops.

 

Updated 4/6/2021