Corteva Agriscience – the global agriculture company, conducted a survey among 600-row crop farmers in 26 states across the US on carbon dioxide reduction programs. The survey confirmed that the participation of farmers in such programs is low even though most are familiar with them.
According to the findings, 72% of farmers are aware of the carbon offerings but only 3% are enrolled in carbon programs. Many of them employing carbon sequestration practices are eligible to enroll and take part. Some of the main barriers, however, identified for the low participation include agronomic know-how, equipment, and return on investment.
Corteva claims it provides a solution to the return on investment issue through a carbon program. The program uses a farm management platform called Granular that connects farmers with buyers. Its goal is to encourage farmers to try out those techniques for themselves via increased financial incentives.
Carbon Dioxide Reduction Program
The farmers sign a contract for a set price of $15 per ton and 75% of credit value and the contract rewards them for changes to no-till, strip-till, cover cropping, or better nitrogen management. The contract thus guarantees farmers always capture the upside.
Corteva also partners with Indigo Ag to increase the adoption of the carbon program among farmers.
“We want to make sure there is farmer choice out there, and when you look at Indigo Ag, they have premium credits at a very high price point, targeting $30 per ton this year which is double what most programs have…They will use our digital software so you get all the backing and familiarity and trust of Corteva with all the upside of a company like Indigo,” said Ben Gordon – Carbon and Ecosystem Services Global Portfolio Leader of Corteva.
In August 26th, 2021, Corteva announced the expansion of its program into 2022 called Carbon Initiative for the 2022 crop year, in collaboration with Indigo Ag. It aims to increase the value of soil carbon sequestration practices for farmers.
Some of the highlights of the program include:
- Farmers will receive 75% of the credit value so as future prices rise, they capture the majority of the upside.
- As per market projections, farmers could earn as much as $30 or more per credit, with the added security of a guaranteed minimum payment of $15/credit.
- The offer is available across 11 states including Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.
- More practices and crops are included in the program like increasing nitrogen use efficiency and reducing tillage. 17 of the most common crop types across the US are now also supported.
The carbon dioxide reduction programs are needed to harness the power of natural sequestration practices for climate change mitigation. Corteva’s Carbon Initiative helps facilitate carbon reduction and greenhouse gas abatement at scale and makes sure those healthy practices are aligned with industry standards.