Jun 5, 2021
T.J. Adkins
The development of agricultural ecosystem credit markets, specifically carbon markets, is a hot topic in the popular press and Washington, DC. The United States Environmental Protection Agency (EPA) estimates that 10% of carbon dioxide, a primary greenhouse gas, is emitted by the agricultural sector. While this is relatively a small portion of overall carbon dioxide emissions by the economic sector, agriculture has received a lot of attention in reducing overall GHG emissions recently. The Ag sector is viewing carbon markets as an opportunity to attract additional revenue while adopting production practices to reduce greenhouse gas (GHG) emissions, improving soil health and yields, and potentially reducing input use. Various forms of carbon markets are being developed across the nation as companies attempt to reduce their own carbon foot-print by offering payments to farmers to offset their own carbon emissions and to attract environmentally conscious consumers and investors.