By Chuck Abbott
Successful Farming
A small fraction of U.S. farmers who have pursued contracts for capturing carbon in the soil – an incentive for climate mitigation – say the going rate is $20 an acre or less, said Purdue University on Tuesday. Companies that sell carbon credits to entities trying to offset their greenhouse gas emissions say the market is still in its infancy and prices will become more robust as demand rises.
Payment rates of $15 or $20 are commonly mentioned at present for each ton of carbon dioxide that is sequestered or preserved through reduced emissions. The carbon credits created when carbon is sequestered are sold to those who are trying to reduce their own carbon emissions, such as manufacturers and airlines. Growers who adopt practices such as cover crops or minimum tillage can remove from 0.2 to 1.5 tons of carbon per acre per year, says Nori, a carbon removal marketplace.