The main way used is through modeling, but they also will probably combine that with a soil test to measure the change in the soil,” Sellers said.
“Truterra estimates between 0.2 and 0.75 tons of carbon dioxide is sequestered per acre, depending on region, practices and soil types.
It’s difficult to put a value on it right now without that market and price discovery process.
Sellers; Schnitkey; Krista Swanson, U of I visiting research specialist; Nick Paulson, U of I ag economist; and Carl Zulauf, Ohio State University ag economist/policy, penned a farmdoc article addressing what questions farmers should ask about selling carbon credits.
So, we have to be able to count that carbon credit as something other than business as usual for quite a few years for some of them.
Sellers: A paper published by International Finance Corporation in 2013 stated a farmer switching from reduced-till to no-till in corn would need $30 per carbon credit to break even from making the change.
The sequestration of carbon dioxide going from reduced-till to no-till corn was 0.42 metric tons per acre and the breakeven cost was $30 per credit.
Sellers: One study estimates that cover crops can sequester up to 1.2 metric tons of carbon dioxide equivalent per acre, and they estimate on average that cover crops could sequester one-half metric ton of carbon dioxide equivalent per acre.
Another study estimates between 0.16 and 0.35 metric tons of carbon dioxide equivalent per acre.
Sellers: The payment could be in the form of cash, cryptocurrency, or credits toward purchases.
Sellers: Farmers will have to pay a fee for soil sampling or third-party verification, although some companies may cover these costs.
For rented land, farmers may need to provide an attestation of their right to market carbon on the property to the company.