Demystifying carbon markets: FAQ for farmers
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What are carbon markets?
Carbon markets are trading systems where farmers can sell the verified environmental benefits that they have created on their farm, such as storing carbon in the soil or reducing carbon emissions.
How Do Soil Carbon Markets Work?
1. Adopt Regenerative Practices
Farmers implement practices that improve soil health and increase carbon storage, such as cover cropping and reduced tillage.
2. Measure and Record
Data is collected on farming activities and outcomes. For soil carbon, this means establishing a baseline (what’s already in the soil) and tracking changes over time.
3. Verification
Independent third parties verify the data to ensure the claimed benefits are real and measurable. This is crucial for building trust in the market and maximising the value of the credits.
4. Monetisation
Verified credits are sold on voluntary carbon markets or directly to companies seeking to offset their emissions or invest in nature-based solutions. Farmers receive payments for each verified unit, creating a new income stream.
Is it worth the effort? Carbon markets are still developing and prices can fluctuate. However, with increasing demand from companies the opportunity is growing. Early adopters have seen real payouts, with Agreena paying up to £32 per credit.
How is carbon impact measured? Agreena measures how much carbon is stored in the soil using MRV technology, which stands for Measurement, Reporting and Verification. The system combines remote sensing with on-the-ground evidence, such as soil sampling. Agreena has operated one of Europe’s largest soil sampling programmes over the past three years.
How do I know it’s credible? Verification is key. Agreena adheres to international standards (like Verra VCS), third-party audits, and robust data systems to ensure credits are real and valuable.
What’s required from me? You’ll need to adopt and maintain regenerative practices and annually report on your practices. Agreena’s new platform, AgreenaGro, is designed to make data reporting as straightforward as possible.
What other benefits are there? In addition to financial rewards, Agreena provides access to insights, tools and community, such as free soil sampling and free access to the premium Farm Management System, fieldmargin.
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