Maximizing Benefits: Choosing the Right Carbon Program for Your Farm

As of January 2025, over 10,000 companies have committed to taking actions related to mitigating climate-related risks, with nearly 1,000 of those companies being in the business of food production¹. As food ingredient producers, farmers can expect that many companies purchasing their commodities may be looking to learn more about the carbon footprint of their production practices.

As more companies commit to emissions reduction targets, the market is poised for an increase in the demand for carbon credits and scope 3 assets². This swell in demand brings new opportunities and incentives for farmers who engage in conservation practices in the form of carbon programs. Each program offers distinct rewards and requirements, leading some farmers to question how to identify the most suitable program for their unique operation.

There are some important questions a farmer can ask to identify which program may best fit their situation:

What is the incentive?

When considering carbon programs, it's essential to understand the incentives offered. These incentives can vary significantly, including payments based on per acre, per ton, per bushel, or per practice. Farmers might receive cash, tokens, account credits, or product discounts as compensation. Additionally, the payment structure can differ, with some programs offering payment up front, while others distribute payments over time. 

How do I qualify? (or, what are the program requirements?)

To qualify for carbon programs, farmers need to meet specific requirements. These often include adopting a conservation practice but can also include product purchases. Additionally, farmers likely will need to engage in data collection to track and report their management practices. Knowing what data points will be collected can help a farmer decide if they’ll be able to meet the requirements. Some programs may also have criteria for whether the land is owned or rented. 

Are there any long-term commitments?

When considering carbon programs, it's crucial to inquire about any long-term commitments involved. These commitments can pertain to practice changes or product usage, which may require ongoing adjustments to farming operations. Additionally, it's important to understand the terms of contracting and data reporting, as some programs may require farmers to maintain certain practices and report data over an extended period. Being aware of these long-term obligations can help farmers make informed decisions and ensure they are prepared for the duration of their participation in the program.

Can I stack this opportunity with other sustainability programs?

With so many sustainability program options available today, many farmers wonder if they can enroll a field in more than one program, which is sometimes referred to as “stacking”. .Program stacking may be allowed, but there are many nuances and rules related to stacking programs. It is important for farmers to read all the documents and contracts related to the program(s) they are considering to determine if program stacking is allowed.  If a farmer determines that they are allowed to stack certain programs, they may be able to enhance their environmental impact while gaining access to various incentives and support programs.

Other considerations:

When evaluating carbon programs, there are several other important considerations to keep in mind. One such consideration would be criteria surrounding minimum or maximum field sizes or acreage enrollments. Additionally, the level of customer support and service provided can vary, with some programs offering online portals and DIY options, while others provide access to customer support representatives. Data privacy is another crucial factor. Many of these programs require a considerable amount of data to be collected and the rights of that data to be contracted. It’s important that the farmer understand how that data will be used, shared, and protected. Taking these considerations into account can help farmers choose a program they are comfortable with.

While the information above relates specifically to carbon programs, there are many sustainability market opportunities that may not involve transacting carbon assets. If your operation doesn't meet current needs of carbon buyers, consult a conservation funding expert, like a Truterra network provider, to explore other funding options. Find a list of our providers at https://www.truterraag.com/Find-A-Retailer.

Sources:

• ^{1. https://sciencebasedtargets.org/companies-taking-action}  
• ^{2. https://www.southpole.com/blog/shaping-the-carbon-market-what-to-expect-in-2025}