It may seem like a new carbon program hits the market every day, enticing farmers with promises to pay for new practices.
“A carbon credit is a tradeable asset that gives the buyer the right to offset the emission of greenhouse gases into the atmosphere,” says Alejandro Plastina, an Iowa State University extension economist.
“The way quality is certified to verify claims on carbon credits is through a measuring, reporting, and verification system,” Plastina says.
There is no industry-wide standard for carbon credits or MRV systems, making it difficult to compare programs for both farmers and potential carbon credit buyers.
“Understanding how verification is going to work in these contracts is huge,” says Kristine Tidgren, Director of the Center for Agricultural Law and Taxation at ISU.