Carbon

Why Traceability is Table Stakes in the Grain Business

Tue, 21 Apr 2026 14:48:44 GMT

With recently announced guidance from the Department of the Treasury, to support the documentation of agricultural production required to participate for Section 45Z tax credits, Bushel and Verity have integrated their on-farm data, sustainability modeling and compliance platform. Kimberly Bowron, president of Verity, and Jake Joraanstad, CEO of Bushel, explain what’s next for traceability in the grain business.

Lessons From The Field

Bowron says the pilot project at Gevo’s ethanol facility in Richardton, North Dakota, helps to illustrate the opportunities that are unfolding and how it will effect the entire supply chain. Its “farm-to-flight” program included 500,000 acres being loaded into the program with the farm-level attributes.
When it comes to farmer engagement in programs, she says it really boils down to three things:

Eliminate Duplicate Paperwork: Streamlining the administrative burden.
Data Sovereignty: Ensuring data is protected and ownership remains with the farmer.
Economic Clarity: Providing a clear, transparent financial upside.

“We’re learning that workflow is everything. And so if it feels like there’s extra admin work and uncertain payoff, participation sort of slows down. But if we can be clear about all of those things, then growers are very engaged,” she says. “I think another takeaway is just trust. Farmers really want to know exactly who’s seeing their data, so we like to be transparent about how that’s being used. And that transparency isn’t really optional for us. We want to be clear about the economic opportunity and the adoption.”

Bowron shares the supply sheds around the biofuels producer will be driven by the evolution of these programs, the value presented to the farmers, and how market-based opportunities continue to expand including carbon intensity, scope 3 emissions and more. But the common undercurrent empowering the conversation of what’s possible is transparency.

Joraanstad says traceability was once a long time ‘scary’ word in the grain business because of the difficulty in delivering the full origination of a kernel of corn through the supply chain.

“It just wasn’t practical,” he says. “But if you’re a biofuels plant in the future, if you can’t do this then you’re going to be losing to those who can.”

It’s the intersection of the real dollars of cents potential of tax deducations such as 45Z plus the technology advancing the digitization of records putting this new mandate on how to stay competitive and profitable.

“This has been a long time coming,” Joraanstad says. “But the truth is that all of the previous discussion around what data is required, there was a lot of voluntary effort, and let’s call it the first version of all of this effort.”

For the biofuels producers, Bowron says the digitization not only provides participation for the carbon credits or tax deductions but also the specialized markets.

“Verity’s real role is to take all that farm-level data, translate that into a field CI (Carbon Intensity), and then take that CI and attach it to a gallon in an ethanol plant,” Bowron says. So that you have a CI that attaches to that gallon. We also think about this in terms of different attributes, like practice attributes. ‘This gallon can go to Canada because it’s got all those attributes; this gallon can go to California.’”

While the 45Z guidance is helping proving an outline for the potential, it’s a whole new chapter. And one that is still being written. The final rule isn’t expected to be released before June.

“We’re still wanting some better final answers as we’re going through this,” Jooranstad says. “But now all of us can act with some confidence that that’s true and this is a requirement and it’s not just a hope and a dream.”

Both industry leaders says it’s important to note how 45Z works, especially that it’s the biofuel producer receiving the tax credit.

“This isn’t like an EQIP program. There’s no direct USDA payments that are happening. And for an ethanol plant, it’s actually a lot of work,” Bowron says. “They can’t sell the value of that tax credit for the headline price.”

The ‘hidden costs’ for ethanol plants include:

Discounted Value: Credits are often sold at 90-95% of face value.
Overhead: Costs include broker fees, legal counsel, and insurance wraps for audit protection.
Delayed Realization: Benefits are filed with taxes and often not realized until a year later.

Hear more from these industry voices in the latest Scoop Podcast.

Land O’ Lakes Restructures Truterra, Reduces Team

Thu, 28 Aug 2025 22:18:02 GMT

Earlier this week, Truterra employees were notified of a reduction in force. This announcement was part of parent company Land O’ Lakes restructuring the business.

In a statement a company spokesperson said: “Land O’Lakes, Inc. is shifting its approach with Truterra from operating a stand-alone business to embedding the work within our three core business units. This shift strengthens alignment between each business unit’s priorities and the work that drives customer value and growth. This integration reflects our belief that this work isn’t a separate initiative, but a core capability that supports every part of our business.”

According to social media posts, dozens of employees were part of the reduction in force.
In its first three years of offering a carbon market enablement program, Truterra facilitated payments of over $21 million in total to farmers.

Last fall, the company announced a partnership with Indigo Ag, with a focus for the companies to further enable sustainable incentive programs to farmers.

“These are new products and new markets,” says Eric Gibson, a sustainability analyst with Rabobank. “Just like the economies that farmers and ranchers are operating in, these sustainability economies are cyclical. Now, what’s different about a lot of these carbon products and opportunities is they’re new cycles that they’re beginning. So, will they mirror and mimic what a lot of the ag economy looks like? We really don’t know. I think many of us will project that, hey, even if some of these carbon opportunities go away today, will they resurface in 3, 5, 8 years?”

New Tool Helps Farmers, Ranchers Identify Conservation Incentive Programs

Wed, 27 Aug 2025 12:49:38 GMT

Conservation incentive programs that fit your farm and specific agronomic practices and/or livestock are not always easy to identify and sign up for online.

But those hurdles could soon be problems in the past, thanks to a new online platform, the Conservation Connector, which was just launched this week by the Conservation Technology Information Center (CTIC)

The new tool allows farmers, ranchers, and farm advisers to easily evaluate conservation incentive programs and connect with technical support at one online site, according to Ryan Heiniger, CTIC executive director.

As a fourth-generation farmer, Heiniger says he knows firsthand how challenging it can be to identify programs, companies and the individuals in charge of them who can provide more details in a phone call or an email.

“You might visit four or five government offices and a dozen websites, only to collect bits and pieces of information on those programs that would be a good fit for you. Our goal with the Conservation Connector is to bring all of that under one roof, so to speak, to help farmers, ranchers and advisers more easily find what is available in their area and fits with their needs,” Heiniger says.

The platform currently has around 500 programs and service providers in the Midwest that are participating, Heiniger says. He notes the tool is continually updated with the latest program offerings from trusted agencies, organizations and conservation partners. In addition, Connector.ag has no associated costs for farmers, ranchers and advisers to use.

“I want to underscore that it’s free for farmers; none of the information is behind any kind of paywall,” he says. “It’s also free for people who want to create a listing.”

The Conservation Connector is easy to navigate – it’s searchable by geography, commodity, incentive type, and/or management practice.

“We’ve made it easy for people who are on a specific mission to filter through,” Heiniger says. “You might be in New York looking for help with pasture renovation, and you don’t want or need to see what programs are available in Iowa. So, you can default right to New York. Or, you can default to a specific crop. The filters can help you ratchet down to the specific information you want to dive deeper into.”

Heiniger says the idea for Conservation Connector originated from Houston Engineering, the Nature Conservancy, and Open Team, and the CTIC invested the past 18 months in developing it.

CTIC invites farmers, ranchers, technical service providers, and conservation partners across the country to explore the platform at Connector.ag . You can provide feedback about your experience to help inform future iterations of the platform here .

The Scoop Podcast: How Carbon Markets Have Changed

Wed, 18 Jun 2025 17:23:21 GMT

Farmer-facing carbon market opportunities have grown in the past six years—going from buzz-worthy to more than two dozen programs available.

Now, a new phase of carbon enrollment has emerged.

“The carbon markets are maturing. The next phase is product-based carbon programs,” says Thad England, director of U.S. strategic accounts with Groundwork BioAg.

Groundwork BioAg has a portfolio of mycorrhizal inoculants branded Rootella, and application of those products—available in dry and liquid formulations—enables growers to be enrolled in Rootella Carbon.

“Crop markets are tough. Revenue streams on the farm aren’t getting wider,” England says. “When I started my career, I wanted to help the largest amount of growers possible. I can some seed, chemical, and fertilizer and help them grow a good crop, but I can’t help them necessarily on a revenue stream standpoint, until now. This is a dawn of a new market for growers.”

Since 2023, the company established Rootella Carbon, which is a four-year enrollment where growers apply a Rootella product, and measurements of soil carbon are taken every year.

“The application cost is going to be roughly in that $10 per acre range. So it’s a four year commitment to spend about 10 bucks an acre,” he says. “What they can expect is a one to four ton sequestration per year. That’s a wide range. So an average, I’m going to be conservative and say that’s one ton which would be a VCU–verified carbon unit, also known as a carbon credit–and that ton is worth about $40.”

The Rootella Carbon program is structured for the company to revenue-share carbon credit sales, and the company covers all measurement expenses.

England says product-based programs provide growers an entry point into a carbon program without requiring a production practice change such as no-till. Instead, they are adding a product application, such as a soil amendment.

“It’s giving an option where a grower who has done a great job doing what they do, but they may not be eligible for other programs right now because of their current practices,” he says.

In all, Rootella products have grown from being applied on 20,000 acres just a few years ago to now being applied on more than 400,000 acres. Groundwork BioAg uses a network or partners and dealers to market their products.

Mycorrhizal Inoculants Aim to Reset Soil Health Foundation and Introduce Carbon Revenue Stream For Farmers

Fri, 25 Apr 2025 11:00:00 GMT

With its trio of products, Groundwork BioAg is solving for two problems at once. First, its Rootella L, Rootella X and Rootella Forte mycorrhizal inoculants contribute to increased soil health with extending root systems, improving nutrient uptake and building crop resiliency. Second, application of Rootella qualifies farmers for participation in the Rootella Carbon program.

“Our highly concentrated formulations of viable mycorrhizal fungi demonstrate how a healthy fungal network below ground translates to a healthy soil environment and improved above ground yield,” says Andrew Duff, general manager of Groundwork BioAg in North America. “Everyone is looking for the limiting factors in every field, and a focus on biology-based inputs can help provide answers.”

Duff says to date, Groundwork Bio has worked in corn, soybeans, rice, barley, sugar cane, cotton and other row crops.

He says with strong visual results and test plot data, in some fields, farmers have been able to reduce applied phosphorus up to 25% and maintained yields.

The agronomic benefits led to Groundwork Bio establishing a carbon credit program in parallel with its product application. First launched in 2023, the company structured the program for farmers in any production system—no till all the way to full tillage. Soil carbon is measured initially and throughout the term to assess the carbon credits generated.

“All a farmer has to do is add Rootella,” Duff says. “The fact that it’s a measure and remeasure program, there’s no guessing as to how much carbon was sequestered, farmers like that. They see tangible results– through yield improvements by addressing soil health”

Groundwork Bio organizes the measurement and verification sampling process. A third party verifies and validates the results.

“Results are influenced by a number of factors including soil characteristics and land management practices, but we’re excited to see more growers enroll every year,” Duff says.

In 2023, 100,000 acres were enrolled, which grew to 150,000 acres in 2024. For 2025, the program has a waiting list.

“We have a revenue sharing model, the grower receives the majority of the net proceeds of the carbon sale,” he says.

The Rootella Carbon program requires a four-year commitment.

“In our business, we are working to help farmers bridge the gap and then scale with new solutions,” Duff says.

Can You Still Bank On Carbon Opportunities?

Thu, 05 Dec 2024 17:00:00 GMT

Carbon offset markets caused quite the buzz in 2020 with a flurry of more than a dozen opportunities for farmers being introduced in a short time frame.

Today, the dust has settled a bit, and as such, the programs currently available are more focused and have multiple years of a track record behind them.

This space has seen exits. At the end of 2023, Rabo AgriFinance ended its Carbon Bank pilot programs, and it reassigned its focus in its sustainability team. In September, Nori closed its doors.

Two other programs refined their approaches to no longer include offsets.

Moving away from a broader approach, now Nutrien offers its Sustainable Nitrogen Outcomes program, which focuses on nitrogen management as a way to reduce overall nitrous oxide emissions. As Sally Flis with Nutrien explains, the program has grown from 150,000 acres in the U.S. and Canada to more than 2 million acres in 2023. With one-year contracts, farmers can adjust nitrogen management practices for enrollment.

“The total opportunity with additionality was overestimated,” Flis says. “Everybody thought it was going to be easier than it was. There are some tenacious companies who have not given up. Others have walked away.”

The Ecosystem Services Market Consortium (ESMC) now solely focuses on Scope 3 projects for food and beverage companies, which have been the most interested in reducing the environmental effect of their supply chain.

“Regenerative ag practices improve the producer’s ability to continue to operate and produce food,” says Thayer Tomlinson, communications director at ESMC. “In hindsight, it makes obvious sense the food and beverage companies would want to improve the resiliency in their supply chain and provide financial incentive to do so.”

Carbon Crescendo?
Have carbon offset opportunities reached their peak? Current providers say no.

“We’re still on the upswing,” says Clay Craighton with Agoro Carbon Alliance. “When I started at Agoro Carbon four years ago, we had 30,000 acres enrolled. Today, it’s close to 2.4 million across 32 states.”

In the past three years, Indigo Ag has produced $16 million in sustainability program payments to farmers—$10 million of which was from carbon offsets. In the first three years, Truterra paid over $21 million to farmers for the sequestration and reduction of over 1.1 million metric tons of carbon.

In that same time, the value of a carbon credit per ton has risen from $15-$20 to now $60-$80.

In December, a partnership was announced where Truterra will begin offering Indigo Ag carbon programs, and Indigo Ag science will back Truterra’s carbon measurement. Company leaders say this partnership aims to simplify, standardize and bring scalability.

“We’ve got to stop double investment,” says Ewan Lamont, head of Indigo’s Sustainability Solutions business. “Both companies have been investing in the same things, and it makes absolutely no sense. This work is expensive, it’s difficult, and it involves biology and sustainability science so it’s challenging.”

Jamie Leifker, president of Truterra, says previous years’ programs for carbon credits have sold out of the tons Truterra enrolled. Leifker is bullish on how adding Indigo Ag into their portfolio will expand opportunities for farmers.

“This market is fragmented and decentralized with inconsistent standards,” he says. “Farmers have a lot of questions. What this collaboration means for us is that we’re able to then guide them to the right program by working with Indigo to expand the portfolio of program options that farmers have and give them flexibility to move from one program to the next.”

New Questions Arise
Carbon offsets require a practice change or additionality for enrollment. With financial support available to facilitate those changes, farmers ask how they can stack these opportunities. In the most simple way to answer those questions, federal and state-funded programs can be stacked with private programs (most often). But enrollment can not duplicate across multiple outcomes. For example, crops can’t be enrolled in a Scope 1 program at the same time as a Scope 3 program.

This is coming into focus as questions are asked around the carbon space because of the 45Z tax credit provisions scheduled to go into effect on Jan. 1, 2025. The provisions make carbon intensity a measurement parameter for biofuels production. A crop acre can’t be enrolled for offsets at the same time a crop is sold for 45Z tax credits.

Indigo Ag and Truterra Form ‘Landmark Collaboration’ in Carbon

Mon, 18 Nov 2024 16:42:23 GMT

Today, Indigo Ag and Truterra announced they are aligning their carbon efforts for further expansion.

After being in the market alongside each other for four years, Truterra will begin offering Indigo Ag carbon programs, and Indigo Ag science will back Truterra’s carbon measurement.

Leaders of both companies say this has a three-prong goal for the carbon opportunities in front of farmers:

Simplifying
Scaling
Standardizing

“We’ve got to stop double investment,” says Ewan Lamont, Head of Indigo’s Sustainability Solutions business “Both companies have been investing in same things, and it makes absolutely no sense. This work is expensive, it’s difficult, and it involves biology and sustainability science so it’s challenging.”

Lamont specifically says this partnership does not reduce Indigo Ag team members in the field selling and promoting their programs.

Jamie Leifker, President of Truterra, says previous years’ programs for carbon credits have sold out of the tons Truterra enrolled. Leifker is bullish on how adding Indigo Ag into their portfolio will expand opportunities for farmers.

“This market is fragmented and decentralized with inconsistent standards,” he says. “Farmers have a lot of questions—'how do I know what program is right for me?’ What this collaboration means for us is that we’re able to then guide them to the right program by working with Indigo to expand the portfolio of program options that farmers have and give them flexibility to move from one program to the next.”

For 2025, the partnership has two goals:

expanding access to registry-based credit opportunities through Indigo’s carbon program for farmers and ag retailers in the Truterra network
expanding Indigo’s and Truterra’s scope 3 programs, using consistent standards, for companies seeking to reduce emissions from within their grain and livestock ingredients supply chain

Lamont says, “This partnership is a big manifestation of the carbon market standing up and really maturing. I can’t think of a better group of guys to doing it with. We will work to align to the rules in the road and therefore expand opportunities.”

A Win for Private Property Rights, Voters Reject Carbon Pipeline Measure in South Dakota

Wed, 06 Nov 2024 20:24:19 GMT

A key state ballot issue in South Dakota is poised to go against carbon pipelines, according to Farm Journal Washington Correspondent Jim Wiesemeyer. The referendum let voters decide whether to uphold a pipeline bill that was passed by legislators.

90% of votes were in as of mid-morning Wednesday, and 60% voted no and 40% voted yes. A “no” vote means the state law in question would be rejected, and that raises fresh questions about the Summit Carbon Solutions pipeline and similar projects.

Proponents of the law argued it would create a revenue stream for counties with a a $1-per-foot surcharge of pipeline projects. They also argued it would serve as a compromise between landowners and pipeline companies.

However, landowners didn’t agree and fought against he bill saying the law would take power out of the hands of the counties and infringe on personal property rights.

View this post on Instagram

A post shared by Amanda Radke | Rancher, Speaker, Author (@amandaradke)

Carbon Pipeline Plans

The vote could have a direct impact on Summit Carbon Solutions pipeline. The company’s planned Midwest Carbon Express pipeline would be the largest in the country, spanning across 2,500 miles. It would cover several hundred miles in eastern South Dakota and is estimated to cost $8 billion.

The company said the goal is to remove carbon dioxide (CO2) from the exhaust stream of 57 ethanol plants in a five-state region in Iowa, Minnesota, North Dakota, South Dakota and Nebraska, according to Jimmy Powell, chief operating officer for the Ames, Iowa-based company.

On June 25, the Iowa Utilities Board approved the permit for the pipeline. For construction on the pipeline to begin, permits must be secured in North Dakota and South Dakota.

Referred Law 21 was originally passed by legislators and signed by Gov. Kristi Noem (R). The law was meant to ease the path of carbon dioxide pipeline construction. But after garnering enough signatures, the law was put on the November ballot.

According to legal expert John Dillard, state governments have the primary authority to approve the siting and construction of CO2 pipelines as well as the eminent domain authority of the pipeline companies. These laws vary state-to-state, but they generally require pipeline companies to address safety and environmental concerns, provide notice to potentially impacted landowners, and minimize damage to landowner property. Some states preempt or restrict the authority of local governments to restrict pipelines while others allow zoning laws that would make construction difficult or impossible.

Your Next Reads:

Buoyed by Stronger Support from Rural America than 2016, Trump Wins Second Term as President

Denver Voters Reject Slaughterhouse Ban: Win for Animal Ag

Chasing Dollars (or Pennies) With Carbon Farming

Wed, 23 Oct 2024 21:36:21 GMT

The move to climate-smart farming practices has felt like a disorganized and chaotic movement of different opinions and attitudes toward an elusive and dynamic end point.

That is — herding cats.

The original plan for carbon farming was carbon offsets. Eastern Iowa farmer and carbon-market early adopter Ben Riensche explained that approach very clearly during a recent farmer forum on “ AgriTalk .”

“It’s like paying you to go to Jenny Craig to lose weight for me,” he said.

There are still carbon offset opportunities, but the broader market is in transition. Instead of an individual farmer contracting to change production practices to offset the carbon output of another producer, the effort now is to maximize crops with the lowest carbon footprint in the production of biofuels.

The theory is other end users will eventually need to compete to have the crops with the lowest carbon footprint to produce whatever they produce. Maybe even if that’s beef, pork or poultry.

Enter 45Z Tax Credits

Starting Jan. 1, 2025, registered biofuel producers will be eligible for 45Z tax credits totaling as much as $1.75 per gallon. The biggest incentives are expected to be paid to producers of sustainable aviation fuel (SAF), which use ethanol and bio-based diesel produced with crops with the lowest combined carbon intensity (CI) score.

If an ethanol or oilseed crush plant can convince all growers who send crops to its plant to make an effort to lower their carbon intensity score, they might be in line to capture a chunk of that $1.75 per gallon and distribute it to their suppliers via higher corn and soybean bids.

Another option is to put all producers feeding crops into biofuel facilities on the same footing by capturing CO2 and locking it up underground. That would likely make the facility eligible for 45Z credits.

But Is It Worth It?

The beauty of this is many producers are already using production practices that lower their CI score. The key will be to document and certify sustainability efforts. If you are doing the bare minimum to reduce your CI score, you might be eligible for a small share of the 45Z tax credit.

If what you’re doing now generates the greatest return, including the 45Z incentive, you should feel no pressure to change what you are doing. If, however, a change here or there on the production side will lower your CI score enough to result in a payment that would more than offset increased costs or lower production, then maybe that’s something to think about trying.

The analysis is straightforward: If a change in production practices will earn you more net income per acre, it’s a change worth considering.

Your Next Read: Treasury Dept. Finally Releases Guidance on the Sustainable Aviation Fuel 40B Tax Credit

It's Go Time: Prepare Your Data Now For Biofuels Tax Credits

Wed, 02 Oct 2024 19:42:45 GMT

With 40Z–the clean fuel production tax credit for transportation biofuels–set to begin on Jan. 1, Mitchell Hora, CEO of Continuum Ag, says now is the time to get your ducks in a row.

“The corn we’re harvesting now is what’s going to be utilized for this 2025 production,” he says. “We really need to have our data in order and be ready for when these tax credits do come through.”

Hora notes there are still a lot of unknowns with how the credits will work, but believes it has the potential to be a major opportunity farmers won’t want to miss out on.

“There is a significant opportunity for farmers to be compensated for their CI scores in 2024,” he says. “Now, it’s going to be messy. The data is going to be messy. The payments are likely going to be quite conservative because of that. But I still see a lot of indications as to there being some money that can be had here.”

While Hora is optimistic about the opportunities coming, Paul Neiffer, Farm CPA and host of the Top Producer podcast, is a bit more skeptical.

“The concern I have is there’s no guidance,” Neiffer says. “We have the 2024 crop, but if they come out and say the ethanol plant or the biofuel plant had to have a contract in place with the farmer, well, there’s no farmer out there that has a contract.”

Neiffer also believes the program’s success will largely come down to what the requirements end up being.

“If you have to sign up for all these regimented programs, farmers might say forget it,” Neiffer says. “If it’s four bucks a bushel, yeah, I’ll do everything for that, but if I have to do X, Y and Z for 30 or 40 cents, it’s not going to fly.”

If farmers do end up wanting to take advantage of those opportunities, however, data will be critical. According to Hora, Continuum Ag has calculated carbon intensity (CI) scores for over 325 million bushels of grain and found the average score to be 11.1 - which is 18 points lower than the default of 29.1.

“If you’re going to get paid anything, you have to have data. That’s what it boils down to,” Hora says. “If you don’t have data, that load of corn has a default load score of 29.1 until you can prove otherwise.”

He recommends taking the necessary steps now to calculate your CI score now and then implementing practices such as reduced tillage, manure application, etc. to lower it.

“Nobody knows exactly what their score is, because we don’t know exactly what the calculator is going to be. But we have a general idea of what goes into it, so we can start moving the needle,” Hora says.

While in the combine this fall and planning what practices you’ll use for next year, Hora says it’s a good time to consider how your current actions will impact your carbon intensity for next year.

“All we can do is start getting our data organized, start figuring out what the scenarios are going to be, be in position to make some educated decisions when the time is right, and capitalize however the rules do come out,” he says. “In my mind, this is just by far the biggest opportunity in ag.”

Catch up on episodes of the Top Producer podcast here.

Your Next Read: The ABCs of 45Z: Take Time Now to Prepare for Low-Carbon Market Opportunities

5 Ways Truterra Wants To Break The Carbon Market Adoption Plateau

Fri, 27 Sep 2024 18:24:52 GMT

On the heels of announcing its 2024 carbon programs, Truterra president Jamie Leifker says the industry is still in the messy middle of realizing the potential of these programs for farmers.

As the program offerings have expanded, notably, Truterra’s increased focus to offer opportunities for long-term practitioners, the effort to increase farmer participation still requires overcoming great inertia.

“We can move so much faster. By our estimates, less than 2% of farmers are participating in these programs industry wide,” Leifker says. “For us at Truterra, for the first two years, we sequestered 462,000 metric tons, paid $9 million. But it was still less than 300 growers enrolled in 2022 and 2023.”

For 2024, Leifker says the business has a goal to enroll 2 million acres via its network of 60 Truterra retailers.

So what needs to be done to break through the adoption plateau? Leifker and the Truterra team are taking the following approach:

1. Encourage its retail network to prioritize carbon markets.

“In the future, sustainability may not grow a retailer’s business, but growing retailers will use sustainability to grow their business,” Leifker says.

Via the carbon market opportunities, such a foundation for the future is being built now.

“We’ve got the opportunity to build confidence at the farm level to sign up. Via a greater connection with ag retailers we can drive the agronomic recommendation and Truterra program enrollment,” Leifker says. “It’s been slow for retailers because it’s hard to make the priority list. Therefore, we have to do more in demystifying how the carbon market works to give the confidence to propose a grower participating.”

Truterra has increased the number of retailers offering its carbon programs by 20% every year.

“We think it’s unique and an advantage to work through ag retailers. Many have tried to go around the channel. The trusted adviser relationship the ag retailer has with the farmer is tested in time. That’s our full commitment. We are going to work via retailers. We’re going to work with them to get to and stay with the farmer as a long term and durable approach to the market,” Leifker says.

2. Integrate carbon into the business of ag retail

“We’re telling retailers to make this part of how they are going to market, and not a separate thing,” Leifker says.
He sees a future with sustainability embedded in each department.

“When retailers make a recommendation for the entire acre, that now includes from seed to the crop’s grain, food or fuel outcome. To make the value proposition they are bringing to growers more robust and more complete, sustainability can’t become ‘another department,’” Leifker says.

From the Truterra perspective, they’ve seen the greatest success with retailers who have dedicated resources hiring a sustainability manager or marketing manager to help with the integration and maximize the opportunities.

3. Make the data lift easier

Carbon markets require data collection, sorting and sharing—usually from multiple years.

“We know farmers are doing the right things with sustainability practice changes, but what we are missing is creating an ease of doing business via these carbon market programs,” Leifker says. “Connections are being created, and we can take 80% of the lift out with the data connections we’ve built.”

4. Recognize high retention rates

While the sign up process still requires lots of education and outreach, Leifker is encouraged by the high retention rate of the Truterra carbon program so far.

“The comfort level of the grower with Truterra is strong—our retention rate is over 90%,” he says. “What’s key is enticing the farmer with strong enough incentives.”

5. Buy into the long-term outlook

“Market access will be key for the retailer to work with the right grower of the future. And the grower will need a retailer to navigate this complex and technical space,” Leifker says.

The carbon program is illustrating how Truterra’s ag retail network is bridging the gap between food companies and farmers.

“In order for this to be successful we have to create a value proposition that creates value for both sides. We are learning that we have tp start talking about the fact that we producing food and fuel. It’s not grain and livestock. So really focusing on helping people understand where their grain is going. And then creating the connections between the processors and the receivers of the grain,” he says.

Leifker adds, “In the past, we focused on max bushels, especially when margins were so good, it was just more bushels. Then the focus was more efficient bushels, i.e. less spend per bushel harvested. Now, it’s about more efficient revenue. It’s not just what you are hauling off the field, but also how to monitor the production of those bushels.”

Carbon Tech Banks on Deeper Roots

Fri, 27 Sep 2024 18:21:34 GMT

One startup is working to remove the obstacle of adopting a new practice to be eligible for carbon market incentives by making plants increase their carbon sequestration by design. Named Cquesta, the company has licensed nine patents from the Salk Institute to modify root architecture.

“Our goal is simple: use traits to help plants grow deeper roots,” says Cquesta CEO Michael Ott. “Deep roots are universally desired in ag because they enable plants to tolerate stress, such as a drought, much better. Additionally, farmers can generate carbon credits just from using the new seed and don’t have to change agronomic practices to participate if it’s not right for their operation, which should help with scaling and adoption.”

First, Cquesta is partnering with CoverCress. The next crops it’s targeting for development are canola, soybeans and then corn.

The company just closed its first round of investment, nearly $5 million, led by Hess Corporation.

This year the company aims set up gene editing operations for field trials and develop its MRV system to monetize carbon outcomes when the technology is deployed commercially. Key measurements are root architecture—depth and width—and carbon sequestration levels.

“We have the ability to modify roots to whatever the seed company or farmer desires. We can go deep, shallow, wide or narrow. We’re focused on deep roots and working with farmers to improve soil quality,” Ott says.

Carbon Intensity Is Going To Be A Team Sport

Fri, 27 Sep 2024 02:09:21 GMT

A new game is about to start and it’s time to figure out what position you want to play.

The Inflation Reduction Act has opened a three-year window for farmers to be compensated for their agronomic practices in a new way.

The Section 45Z tax credit provides biofuel producers (ethanol, biodiesel and sustainable aviation fuel) with an incentive to produce low-emission fuels. This is setting up a new business model: farmers sell grain with the grain’s carbon data associated directly to its value. This is unlike carbon offset programs, which compensate farmers for carbon as an asset itself.

Grain will be assessed with a carbon intensity (CI) score, determined by the Department of Energy’s set of parameters.

Your Field Position

“This is based on what farmers are actually doing. If a farmer has done good practices, they are getting rewarded for it,” says Paul Neiffer, a farm CPA.

Currently, the standard CI score for corn is 29.1. The Inflation Reduction Act sets a weighted average below 25. Neiffer estimates the potential at 5.4¢ per CI point below 29.1. Corn with a CI score of zero is worth an extra $1.57 per bushel in value in tax credits. (5.4 x 29 = $1.57)

“Farmers and biofuel producers need to get aligned and start talking,” says Mitchell Hora, an Iowa farmer and founder of Continuum Ag. “This is an immense opportunity. For the first time, 45Z provides farmers and biofuel manufacturers a scoreboard with a transparent points system and a business model that rewards scoring points.”

To get their CI score, farmers are required to provide at least seven data points:

Yield
Fuel usage/energy usage
Fertilizer
Herbicide and insecticide
Tillage
Cover crop (yes/no)
Manure

While, the current parameters don’t ask for planting date or planted populations, Hora says farmers should have it any way.

This Is Pregame Warm-Up

Hora spotlights how right now is the time to engage because the postharvest practices in 2023 will set the stage for the data needed for the 2024 harvest, which could be sold into 2025 and qualify for the financial incentives. Currently, Section 45Z is good for three years: Jan. 1, 2025, to Dec. 31, 2027. He is encouraging farmers and biofuels companies to be ready so they can maximize the financial opportunity.

The Internal Revenue Service has yet to announce their official regulation, which would help set the value-share structure.

“There’s a chance we don’t get the final word from the IRS until really late in the game,” Hora says. “But right now, farmers can get their baseline CI scores and take a bit of a leap of faith. I see a lot of opportunity for farmers and biofuels companies together.”

ADM and Poet have responded to requests for interviews saying the companies are evaluating opportunities for their business.

Carbon’s Next Chapter On The Farm

Fri, 27 Sep 2024 01:59:32 GMT

A yet-to-be-realized provision in the Inflation Reduction Act could be the key for farmers to engage in measuring the carbon intensity (CI) of their grain.

The Section 45Z tax credit provides biofuel producers (ethanol, biodiesel and sustainable aviation fuel) with an incentive to produce low-emission fuels. What makes this different than carbon offset programs is it could provide a business model in which the farmers’ carbon data is associated with their crop at the point of sale, rather than maintain the trend of carbon being an asset on its own.

Iowa farmer Mitchell Hora says his low-carbon intensity grain could be worth more than $400 per acre in 45Z tax credits.

That’s the good news. Here’s the catch — the Internal Revenue Service (IRS) has yet to issue its own regulation, which is the holdup for ethanol companies before giving a clear answer on the value to farmers.

“[Expectations for compensation] will vary by farm,” says Paul Scheetz, ADM director of Climate Smart Ag Origination. “Our goal is to make the process simple, so farmers understand how they can receive – and increase – incentives as they lead in meeting the vast and growing demand for lower CI products.”

Grain will be assessed with a CI score, which has a set of parameters determined by the Department of Energy. Currently, the standard CI score for corn is 29.1. The Inflation Reduction Act sets a weighted average below 25.

“The value potential here is pretty good — 5.4 cents per CI point below the industry standard,” says Paul Neiffer, a farm CPA. “If you raise 200 bu. corn with a CI score of 0, that’s $1.57 per bushel and an extra $314 in value. Now, the ethanol plant isn’t expected to share 100%, but it could be 25% to 30%. There’s definitely potential here for material value to the farmer. I don’t think this is pie in the sky.”

Hora says his farm’s current CI score for corn is -4.4.

“What excites me the most about this is it really opens the potential for farmers to be price makers and not price takers,” Hora says. “With their production practices, including the long-term practitioners who were excluded from offset market participation, they can sell a digital asset associated with a physical product, their grain.”

Neiffer and Hora discuss the topic more on The Farm CPA Podcast

With his regenerative ag software business, Continuum Ag , Hora is ready to help farmers assess their carbon score upon providing the following data:

Yield
Fuel usage/energy usage
Fertilizer
Tillage
Cover crop (yes/no—doesn’t matter which one or what rate)
Manure
Herbicide and insecticide (fungicide isn’t currently counted)

While, the current parameters don’t specifically ask for planting date or planted populations, Hora says farmers should have it any way.
Neiffer agrees this opportunity could be transformational for every farmer.

“This is based on what farmers are actually doing. If a farmer has done good practices, they are getting rewarded for it,” he says. “This isn’t a program where a farmer has to make a change and then wait five to 10 years for a bonus payment.”

Unlike the previous program, the structure of how these tax credits will be issued provides the ethanol plants with an opportunity to sell excess credits on the secondary market.
Here’s another catch, section 45Z is only good for three years: Jan. 1, 2025, to Dec. 31, 2027.

“First, the IRS needs to publish their regulations, which will help us really calculate the values,” Neiffer says. “We could get that from the agency as late as December 2024.”

Neiffer shared more on AgriTalk:

For now, Hora encourages farmers to get their data in order, and work with folks who can help them start to measure their CI score.

Clarity On Carbon’s Potential: Compare Nine of the Leading Markets

Thu, 26 Sep 2024 21:31:55 GMT

In launching the TruCarbon carbon program, Brett Bruggeman, president of WinField United, says the team is ready to learn a lot and perhaps stub its toes. This spring, the team will enroll growers via the company’s 24 retail partners, which are in the Truterra network. And by summer, the first transactions with Microsoft as the buyer will occur.

“We are on a fast pace,” says Jason Weller, vice president, Truterra. “We have a customer and a huge opportunity to do the initial sale, and it will be one of the largest soil carbon credit sales in the U.S.”

Know The Players And Practices

The following details a roundup of the current carbon markets offering programs to farmers.

The key role trusted advisers can play is helping farmers navigate not only what programs in which to enroll but also each program’s requirements.

Carbon markets offer both economic and environmental value to farmers, according to a report
published by Ecosystem Services Market Consortium (ESMC). (Editor’s note: Farm Journal’s Trust In Food is an ESMC member.) It estimated $5.2 billion in demand for carbon credits from U.S. ag lands.

A separate study from the journal Science Advances found building soil carbon and using other natural climate solutions in farms and forests could offset up to 21% of U.S. greenhouse gas emissions.

“We actually think agriculture is the solution to greenhouse gas emissions,” says Mike Frank , executive vice president and CEO of retail at Nutrien.

The Potential Is Building.

In late January, Peoples Company and CIBO Technologies announced a partnership to offer carbon credits on more than 20,000 acres of land managed by Peoples, an Iowa-based land transaction and advisory firm.

What to Know: Carbon Contracts

“In the absence of a national policy, carbon markets are a bit of a Wild West,” says Laura Sands, principal at K•Coe Isom and sustainable ag expert. “Verification is key. The higher the certainty around the emission reductions, the higher the value of the credits—at least in theory. But verification can be costly.” She offers these tips to consider for farmers and advisers.

Understand how the contracting entity is measuring carbon. Make sure the organization with which you are working does not have a conflict of interest in the measurement process. Confirm that sequestration projections are in line with what other industry sources estimate.
Confirm how dollars flow. Some systems include holdbacks or percentages the organization with which you are contracting takes off the top.
Assess contract terms, length and exit clauses. Understand to what you are committing and for what period of time. Some contracts ask landowners to abide by rules, policies or amendments—and there might not be a mechanism in place for farmers unwilling to abide by the rules, experts say.
Know the risks of a reversal. Most carbon contracts have some sort of mechanism if you fail to sequester carbon.

How Some Leading Carbon Markets Compare

Bayer

Launched: 2020
Minimum enrollment: 10 acres
Per-Acre Cash Payment: $10 per acre. Producers will be paid by the acre, not by the amount of carbon sequestered.

Bayer’s carbon initiative pays producers for adopting climate-smart practices such as no-till, strip-till and the planting of cover crops. Producers are required to plant corn or soybeans, have an active FieldView Plus account and agree to share the data needed for the program.

CIBO Impact

Launched: 2020
No minimum enrollment, but average is 1,000 acres
Per-Acre Cash Payment: $20 per acre. Soon, CIBO will enable growers and enrollees to set the price of their own credits.

The program is called the REAP program: Rapid Enrollment, Annual Payment. Growers agree to a one-year term, and they complete a one-page form attesting to their practices. CIBO follows up with an interview. Once practices are verified by CIBO through remote sensing and interviews, a farmer’s regenerative potential becomes a CIBO carbon credit that is available for sale on the CIBO marketplace. The grower retains ownership of his or her credits. CIBO markets the credits both directly and as part of an ag carbon credit pool. When credits are sold on the CIBO marketplace, CIBO pays the farmer while keeping 20% of the transaction fee.

ESMC

Launching: Fall of 2022
No minimum acreage
Per-Acre Cash Payment: Not specified. Producers will be paid annually for the amount of soil carbon sequestered, GHG emissions reduced, pounds of phosphorus and nitrogen and tons of sediment prevented from release into the watershed and water saved annually from reduced irrigation (based on ESMC quantification, verification and third-party certification).

The contract period is 10 years and includes cropland or rangeland.
There is no contractual volume for producers; the producers’ outcomes are calculated annually over a 10-year crediting period, which can be renewed to a maximum of 20 years.
Producers must register and enter required information for asset or credit generation, and they must certify information entered is accurate.
Producers must show ownership of the assets to be generated to sell them into the market.
Producers have no enrollment fee or requirement to purchase ag products.
Implementing conservation could have associated costs. Producers might be responsible for practice implementation costs and expenses such as soil carbon testing.

Farmers Business Network

Launched: September 2020
Enrollment varies but generally at least 200 acres
Per-Acre Cash Payment: Payments are market-and buyer-dependent. Producers can receive anywhere from 30¢ per acre for research programs to more than 15¢ per bushel for identity-preserved premium programs.

Producers share information with Gradable on their crop production practices, including planting, fertilizer applications, tillage and harvest. The information is processed with artificial intelligence that leverages 240 million acre-events of farm data from FBN. Gradable validates and distills the practices into a single farm-level score, which allows farms to be rewarded for practices without having to share detailed practice information with buyers.

Indigo Ag

Launched: June 2019
Minimum enrollment: 150 acres (a minimum of one field)
Per-Acre Cash Payment: Payment is $15 per carbon credit with a guaranteed price floor of $10 for growers who enrolled in the program beginning in 2020.

Producers dictate their own participation in Indigo Carbon and may choose to pilot on a handful or all of their fields in the first year. Growers can continue to enroll more eligible fields in subsequent years if they qualify.
To be eligible for the program, a grower must contract at least one eligible crop field, hold exclusive operating rights to the land, have not cleared the land in the past 10 years and not receive payments for the land through another carbon credit program.
Producers must commit to making at least one practice change on each enrolled field. There is no cap on the number of acres growers can enroll.
Producers must submit three to five years of historical data depending on crop rotation as well as current-season details about planting and harvest dates, tillage and fertilizer applications. When applicable, farmers must provide information on cover crops, organic amendments, irrigation and grazing.

Nori

Launched: September 2019
Minimum enrollment: 1,000+ acres
Per-Acre Cash Payment: $15 to date, which is based on current prices for producers generating and selling Nori Carbon Removal Tonnes (NRTs). Producers set the floor selling price for NRTs, which sell when buyers are willing to pay that floor price plus Nori’s transaction fee.

The individual (producer) who signs the contract is signing a 10-year contract to make the best effort to retain carbon and report on data annually.
To qualify, third-party verification costs are paid by the participating farmer. Verification must occur once every three years.
The producer must receive assignment of authority from any landowners of farms they plan on enrolling in the Nori marketplace.
Anyone who receives cash from credits sold must pay taxes on that income; taxes are determined by the state in which the farmer lives.

Nutrien

Launched: 2021
Target: 500 to 10,000 acres per producer
Per-Acre Cash Payment: Not specified. Carbon pricing is under development but is expected to be at a level to support the adoption of targeted agronomic practices by growers.

The program, which is activating through Nutrien Ag Solutions, is voluntary and will involve a producer program participation agreement, which requires producers to fulfill sustainable farming practice obligations to receive grower payments. Producers participating in the program will agree to start providing data and implementing practice changes shortly after signing up. Details of the program, including terms and conditions, are still under development.

Soil & Water Outcomes Fund

Launched: 2020
No minimum acreage
Per-Acre Cash Payment: $25 to $40 per acre

Contracts require farmers to add new conservation practices to their operations that result in water quality improvement and carbon sequestration. Producers have one-year contract terms with the option to renew. This program is limited to Iowa, Illinois and Ohio.

TruCarbon

Launched: 2021
Minimum enrollment: 2.5 acres
Per-Acre Cash Payment: Data from the Soil Health Institute indicate 1 acre of regeneratively managed soil could sequester 0.2 tons to 0.75 tons of carbon annually, so range would be roughly $4 to $15 per acre.

TruCarbon is activating through Truterra and its 24 retail partners within the larger WinField United network. The program helps farmers generate and sell carbon credits to private-sector buyers. This is a look-back program for carbon farmers have already sequestered—up to five years ago.

The ABCs of 45Z: Take Time Now to Prepare for Low-Carbon Market Opportunities

Thu, 12 Sep 2024 15:29:37 GMT

By Heather Gieseke

The U.S. Treasury’s recent tax-credit guidance for the biofuels industry has sparked many questions about farmer impacts and ability to participate.

While there’s still a lot to figure out, it’s clear farmers who produce low-carbon fuels will benefit from greater opportunities ahead — including financial incentives and higher demand for crops with a smaller carbon footprint. To be able to take advantage of those opportunities when they arise, take time now to prepare.

What to Know Now
Each biofuels plant will manage this low-carbon market opportunity differently. There are a lot of factors in play for both facilities and farmers. But if you have implemented, or are considering, regenerative practices and you have the ability to deliver your crops to a biofuels plant, you should:

1. Document your practices.
Ideally, you’ll use data straight from your farm machinery software systems. If you haven’t done this before, start now. Even if not for 45Z, this certainly will benefit you in other ways in the future.

2. Reach out to the processing destinations local to you.
Do they have any programs already? If not, do they expect to have them in the future? What sort of data will be required to participate? How can you keep up with new information as it becomes available?

3. Hire a firm to help you calculate your current carbon intensity (CI) score.
If you have a fierce curiosity or desire to participate, consider expert help. This is likely just the beginning of a big future that will result from propelling your verified low CI score into additional revenue or demand opportunities for your farm.

New Terms In the World of Carbon Markets:

Carbon Intensity Score
A CI score is a measurement of greenhouse gas emissions divided by the amount of energy needed to produce something. A CI score is critical to determine the value of low-carbon products such as ethanol, soy biodiesel or sustainable aviation fuel (SAF). The lower the CI score, the fewer the emissions. Carbon neutral means zero emissions occurred during the product’s production. CI scores can also be negative. Crops with a lower CI are generally grown with practices such as reduced tillage, cover crops and nitrogen management strategies.

45Z
This provision in the Inflation Reduction Act provides a tax-credit incentive for producing low-emission biofuels. It only runs from 2025 to 2027 but could potentially be extended. This credit will likely be passed on as a premium to farmers for low-carbon grains and oilseeds to compensate for sustainable practices with verifiable data.

GREET
The Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) model standardizes the measurement of carbon emissions across transportation supply chains. We are waiting for an updated version of the GREET model to support 45Z CI calculations.

How To Boost Your Sustainability Efforts By Aerially Applicating Cover Crops

Fri, 23 Aug 2024 21:02:52 GMT

Planting cover crops is one of the many ways growers can implement conservation practices on the farm. While the cost may be a deterrent for some, the long-term benefits are vast.

“Quick growing cover crops stabilize soil, protecting it from wind, rain, and snowmelt erosion,” said Andrew D. Moore, chief executive officer of the National Agricultural Aviation Association (NAAA) . “By mitigating erosion and runoff, they ultimately enhance water quality by minimizing sediment in waterways.”

Along with minimizing erosion, the practice also:

Improves soil structure, allowing for increased moisture and aeration
Retains and recycles of soil nutrients
Increases organic matter
Breaks insect and disease cycles
Increases soil carbon sequestration

Additional Benefits Through Aerial Application
One of the common ways to seed cover crops is aerially. According to NAAA, aerial applicators seed 3.8 million acres of cover crops - that translates to 1.9 million metric tons of carbon dioxide sequestered annually. EPA says that’s the equivalent of removing approximately 412,000 cars with carbon-combustion engines from the roads each year.

There’s evidence to suggest using aerial application to plant cover crops provides additional benefits as well. In addition to eliminating soil compaction concerns, the method provides more flexibility in timing.

For example, according to the University of Nebraska-Lincoln (UNL) , planting cover crops after harvest limits the species that can be used due to cold weather. But with aerial application, pilots can begin seeding prior to harvest without the risk of damaging the existing crop. This also allows the cover crop to achieve a good stand before residue is introduced.

UNL suggests beginning to aerially apply cover crops when soybean leaves start to yellow and drop or when leaves begin to senesce in corn. For non-irrigated crops, it may be more important to time seeding after a late August or early September rain instead of a specific development stage. Peoples Company adds local conditions should take precedence over general timing recommendations.

Selecting A Pilot
If aerial application of cover crops makes sense for your operation, Peoples Company recommends asking prospective pilots three questions to ensure uniformity in your crop:

Do you do dry pattern testing?
Have you handled the species being planted before?
Can you assure the seed will be applied uniformly?

Bayer's First Carbon Credits Are Issued, More On The Way

Fri, 07 Jun 2024 17:47:52 GMT

The initial results from the Bayer Carbon Program are in – and they’re significant.

According to Nori, a carbon removal issuing program, registry and marketplace, over 125,000 regenerative tonnes from the program have been issued. These are the first credits to come from Bayer’s program and make up the largest issuance Nori has had since it was founded in 2017. The 125,000 regenerative tonnes issued are the result of these practices on 190,000 acres across the U.S.

“Being able to establish relationships like the one we have with Nori is essential to helping turn farmers’ regenerative agriculture efforts into tangible credits that can provide monetary value to these practices and further help stand up carbon markets,” said Leo Bastos, senior vice president and head of global ecosystem services at Bayer. “This squarely aligns with Bayer’s goal of scaling regenerative agriculture to help farmers produce more while helping restore the planet.”

Bayer says this is just the beginning, with 240,000 additional credits in the pipeline and expected to be issued as carbon credits later this year.

A regenerative tonne is equal to approximately one tonne of carbon dioxide that has been removed from the atmosphere through regenerative practices. For Bayer’s program specifically, those practices could be no-till, strip-till, cover cropping or implementing a Nitrogen Management Program.

Bayer Announces 2024 Carbon Program, Expanding Opportunities

Nori and Bayer first partnered in 2022.

With the help of its additional partners, Nori anticipates supporting 400,000 acres of regenerative farming, paying $6.5 million to suppliers and removing over 700,000 tonnes of carbon from the atmosphere this year.

“We have enjoyed partnering with the team at Bayer to issue hundreds of thousands of new soil carbon credits,” said Radjika Moolgavkar, Nori vice president of supply and methodology. “The pairing of Bayer’s expansive regenerative farm network with Nori’s vertically integrated issuing program, registry and marketplace enables us to significantly scale regenerative agriculture adoption together — a key step toward mitigating climate change.”

Colorado Rancher Leverages USDA Grant Money to Steward Public Land

Thu, 06 Jun 2024 17:48:57 GMT

On Gayel Alexander’s Colorado ranch, the cow-to-land ratio is enough to leave many scratching their heads.

Every year, she grazes 200-head of beef cows on 40,000 acres of public land that sits on the rugged landscape shared by national monuments and culturally significant mountaintops.

The fact that her cows are scattered across the landscape like needles in a giant haystack of land doesn’t bother Alexander. She knows this land.

In 1936 and 1942, through the Taylor Grazing Act, Alexander’s grandfather was able to secure two land leases.

“Even though he only had an eighth-grade education, my grandfather was a very smart man,” she said.

Now, these separate leases, managed first by her grandfather, then later by her mother and now by Alexander, combined with adjoining private property, make up the Ja Quidi Ranch.

Layered with generational land knowledge, Alexander also knows her cattle. She spends time on the land with them, learning their habits and tracking their grazing patterns.

But Alexander’s knowledge doesn’t necessarily equal control.

“I have range cows, not pasture cows,” she says. “They are very agile, very smart and they are used to doing what they want to do to survive on their own.”

One challenge with range cows is that Alexander is sometimes chasing her herd away from boundaries and shooing them from neighbors’ cropland and hay barns. On a broader scale, this rangeland free-for-all limits her ability to take full advantage of the rotational grazing plans she develops with federal range conservationists from The Bureau of Land Management and the U.S. Forest Service. This data-tracking hurdle impacts her management decisions, which, in turn, affects overall profitability and environmental stewardship.

That’s where the Partnerships for Climate-Smart Commodities , USDA’s historic funding package for conservation agriculture comes into play for Alexander. The $3.1 billion investment is broken up into 141 public-private grants aimed at providing both technical and financial support for farmers and ranchers to begin, grow or enhance their conservation journey and connect the data associated with it to both operational success and the climate-smart economy.

One of those grants, Farm Journal’s Connected Ag Project , was the missing piece Alexander needed to connect her practical ranch needs and her dreams of holistic land management to reality.

“We have gathered a coalition of industry and conservation leaders, put the power of their technical expertise alongside $40 million in federal grant dollars and brought all of that to bear for the American farmer,” says Jimmy Emmons, senior vice president for climate-smart programs for Trust In Food , Farm Journal’s sustainable ag group. “Through this project, 500 growers and producers like Gayel will have a true partner in connecting their conservation goals to success both for themselves and for agriculture’s sustainable future.”

Each producer enrolled in the project receives:

technical conservation planning
agronomic support
data tools
coaching for how to maximize data efficacy
financial support to implement climate-smart practices or technology

Andrew Lyon, director of technical assistance for the project, is tasked with assessing the needs of farmers in the program and matching them with partners that can provide both solutions and expertise. As the first producer to implement a conservation program under the grant, Alexander will be using both technology and data-coaching partners to accomplish her conservation goals.

“Virtual fencing and data coaching have been important tools to meet both the current challenges that Gayel has on her public land leases and the aspirational goals that she has for better land overall stewardship through increased rotational grazing,” Lyon says. “Through this program, producers like Gayel will have the information and tools they need to set them up for a future of conservation-minded decision-making on their operations.”

Alexander says she never would have been able to address her challenges and meet those goals on her own – which is the main factor that led Merck Animal Health to sign onto the grant project with their Vence virtual fencing technology.

Other private partners for the program, including Ducks Unlimited, PTx Trimble, AgriWebb, U.S. Roundtable for Sustainable Beef, Texas Agricultural Land Trust, ABS Global and Tuskegee University, among others, combine to provide both resources and technical assistance to put practical conservation on the ground throughout the U.S.

“The grant partnership is important to Merck Animal Health because it helps reduce barriers and encourages ranchers to adopt innovative tools, like Vence, to implement strategies to produce beef while reducing their environmental impact,” said Gary Tiller, Commercial Director, Vence Corp., part of Merck Animal Health. “Through our partnership, Merck Animal Health can contribute to sustainability efforts important to the industry.”

Recently, the Connected Ag Project team outfitted Ja Quidi Ranch with technology that is already providing tangible benefit.

Alexander’s cattle have been outfitted with Vence virtual collars, which are allowing her to collect data that she has been “chomping at the bit” to have. She says the data will allow her to make adaptive changes during the growing seasons and better care for the health and wellbeing of her herd.

That level of control could help her increase the size of her herd in the future. Grant partner AgriWebb will provide both the technology and support needed to help get Alexander to that point with their all-in-one livestock management software.

“Those focused on improving their livestock’s efficiency or reducing their fertilizer usage will work with Trust in Food’s technical assistance team, as well as AgriWebb’s customer success team, to ensure the right records are tracked and assessed to support producers on their climate-smart journey,” says Coby Buck, a fifth-generation rancher and director of strategic accounts at AgriWebb.

Alexander believes that the benefits will grow exponentially for her ranch.

“I have feed on both my permits that isn’t getting used right now,” she says. “I normally have four allotments, but when we wrote my summer plan, we tripled it to 12 allotments.”

“Now I can do a lot more intensive rotational grazing which will increase forage and help bring back grasses that have been dormant for years because they haven’t had hoof and cow activity,” Alexander continues.

Range management practices will be beneficial for wildlife and allow Alexander to increase riparian areas that will revive springs and ponds for healthier habitats.

“Some of this land just isn’t healthy anymore, and this will help it come back alive,” she added.

Gazing out over the rugged, rocky landscape Alexander thinks of as her own, you’ll see areas that are part of the Canyons of the Ancients National Monument and, just south, the Ute Mountain, a culturally significant landmark for the Ute Nation of Indians.

Alexander is aware of the weight she bears as steward of this land.

“Every time I can better my permits, I’m bettering everything,” she says.

To learn more about Farm Journal’s Connected Ag Project and explore how it could benefit you, visit www.trustinfood.com/grow . Farm Journal also can connect you to expanded opportunities through our Climate-Smart Opportunity Navigator, available here .

USDA is an equal opportunity provider, employer, and lender. This material is based upon work supported by the U.S. Department of Agriculture, under agreement number NR233A750004G096

What To Know From The Biden Administration's New Carbon Policy Statement

Thu, 30 May 2024 19:03:45 GMT

At the end of May, the Biden Administration published the Joint Policy Statement and Principles on Voluntary Carbon Markets . Farm CPA Paul Neiffer joined the AgriTalk podcast to break down the details of this 12-page document and what the ag industry needs to know.

According to Neiffer, part of the publication’s purpose is to steer companies toward more reliable methods of using carbon.

“You have these large, publicly traded companies that have been greenwashing. They’ve been trying to help the climate, so they go out and buy these credits that really aren’t very valid,” he says. “They’re trying to state the goals for these companies should not be to buy these carbon credits. Their goal really should be to fix their own carbon footprint in their own company and in their supply chain.”

Overall, he says the publication isn’t quite a policy, but more of a statement encouraging companies to clean up their supply chains.

When it comes to farmers, Neiffer believes the ag industry should begin focusing more on 45z tax credits and carbon intensity scores rather than carbon credits.

“It seems to be implying if you’ve already done a great job of reducing your carbon footprint, you’re not going to get a payment because you can’t really reduce your carbon footprint any further,” he says. “Whereas if you’re a farmer that maybe hasn’t done a great job [of reducing your carbon footprint], we’ll give you a payment because we can see in that case where we can reduce your footprint.”

For those who still intend to purchase carbon credits, the second half of the policy statement made an effort to create standards for program participation and make sure there is transparency, identification and documentation.

“They want to make sure it’s legit if you’re buying this carbon credit that you’re actually removing carbon dioxide from the atmosphere,” Neiffer says.

To hear more from Neiffer, listen to this episode of AgriTalk.

Related Stories

There’s a New Way to Cash in on Your CI Score on the Farm, Thanks to the Inflation Reduction Act

How To Increase Your Potential SAF Tax Credits Now

Truterra’s Three Year Total: $21 Million to Farmers

Wed, 22 May 2024 20:12:45 GMT

Truterra has announced over three years, since it introduced its carbon program, the company has paid more than $21 million to farmers for the sequestration and reduction of over 1.1 million metric tons of carbon

“Our carbon program is gaining momentum as a leader among farmers and retailers. Our differentiated approach matches agronomics with economics to help farmers make sustainable practice changes,” said Truterra President Jamie Leifker. “What’s more, these carbon assets could help organizations with sustainability goals who choose to make agriculture part of their toolkit of solutions. Truterra will continue to focus on creating new markets for farmers and retailers, while helping them make the best agronomic, economic and sustainable decisions for their operations.”

Truterra reports the program has grown in acres enrolled each year:

In 2023, total acres increased by 99% vs. 2022.
In 2022, total acres enrolled increased by 151% vs. 2021.

The number of farmers enrolled has also grown, and in the past year’s program, the number of farmers participating grew by 58% compared with 2022.

Truterra is a subsidiary of Land O’Lakes, Inc., which is a 100-year-old farmer-owned cooperative. Truterra uses a its network of local ag retail advisors, who work directly with farmers to help them make the best decisions for their fields, to position the carbon program in the market.

“In many ways, we’re returning to the way that my grandfather or my great-grandfather would have farmed, but with new technology and new metrics. Through the Truterra carbon program, we are doing this by changing some of our cover crop mixes, and I believe that higher yields will come from it,” said Kelly Garrett, a farmer enrolled in Truterra’s carbon program. “I’m looking at the big picture to secure the best for my farm and the best for my family. And I’m very proud that it goes hand in hand with Truterra’s carbon program.”

The New GREET Model is Finally Here: An In-Depth Look at What it Means for Farmers

Fri, 03 May 2024 15:01:37 GMT

The U.S. Treasury and IRS issued updated guidance on the Sustainable Aviation Fuel (SAF) tax credit, aligning with the Inflation Reduction Act’s goal to boost SAF production by providing incentives based on lifecycle greenhouse gas (GHG) reductions. The initial guidance on the Biden Administration’s SAF subsidy program, which includes three climate-smart practices for corn-based ethanol to qualify; two qualifying practices for soy-based biodiesel and producers of SAF are eligible for a tax credit of $1.25 to $1.75 per gallon

The new guidance includes the release of the now called 40BSAF-GREET 2024 model, designed to calculate these GHG reductions more accurately, incorporating new data and methodologies including climate-smart agricultural practices for soybeans and corn as a feedstock for SAF. GREET stands for Greenhouse gases, Regulated Emissions, and Energy use in Technologies.

EPA’s new model is designed to address previously identified shortcomings in the R&D GREET model, particularly in how it calculated lifecycle greenhouse gas emissions. The lifecycle approach accounts for all emissions from the initial production stages through to the final use of the fuel.

Similarity to CORSIA Methodology

The Treasury Department notes that the methodology used by the new 40BSAF-GREET 2024 model is like that of the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) methodology. CORSIA also evaluates the full fuel lifecycle, which includes all stages from the production of feedstock to the end use of the finished fuel.

Both these methodologies aim to provide a comprehensive assessment of the environmental impact of aviation fuels, focusing on reducing greenhouse gas emissions throughout the entire lifecycle of the fuel. This is crucial for developing effective strategies and regulations for mitigating the aviation industry’s impact on climate change.

The SAF tax credit provides a base of $1.25 per gallon for SAF that achieves at least a 50% reduction in GHG emissions compared to traditional jet fuels, with additional incentives for greater reductions, capped at $1.75 per gallon. This move is aimed at fostering the use of domestically produced, lower-carbon fuels and enhancing the role of U.S. agriculture in sustainable fuel production.

Related Story: There’s a New Way to Cash in on Your CI Score on the Farm, Thanks to the Inflation Reduction Act

Significantly, a pilot program was introduced to credit SAF production using feedstocks grown under specific climate-smart agriculture (CSA) practices, like no-till farming and cover cropping. This pilot, part of the broader strategy to decarbonize aviation fuels, represents a shift towards recognizing and rewarding agricultural practices that contribute to carbon reduction. The release from Treasury on the credit noted that the CSA practices incorporated into the USDA CSA Pilot Program “are not a part of either the 40BSAF-GREET 2024 model or any CARB program including the LCFS program. Therefore, the Treasury Department and USDA have developed additional unrelated party certification requirements for the USDA CSA Pilot Program.”

Industry Reaction

Industry reactions have been largely positive, highlighting the progress towards integrating farming practices into carbon scoring for biofuels. However, some critiques focus on the need for less rigid frameworks to encourage broader adoption of innovative, carbon-reducing technologies and practices in agriculture and biofuel production. There is a desire for ongoing refinement of these models to ensure they are scientifically robust and economically beneficial, paving the way for significant reductions in GHG emissions from aviation fuels and strengthening the role of American agriculture in achieving these goals.

SAF production requirements:

SAF producers seeking to use the CSA reduction for producing SAF from CSA crops must contract directly with farmers enrolled in the USDA CSA Pilot Program for either CSA corn or CSA soybeans.

CSA corn production practices:

Farmers producing CSA corn for Alcohol to Jet (ATJ)-ethanol must implement three specific practices on the same acreage:

No-till farming.
Planting cover crops.
Using enhanced efficiency nitrogen fertilizer.

CSA soybean production practices:

For CSA soybeans, only two practices are required:

No-till farming.
Planting cover crops.

Added nitrogen is not required for soybean production.

USDA CSA pilot program and emissions reduction:

In partnership with the USDA, the Treasury Department allows for a SAF synthetic blending component produced from CSA corn or soybeans to be eligible for an additional proxy reduction (CSA reduction) in emissions calculation, without needing a full lifecycle analysis.

Emissions reduction example:

A synthetic blending component using CSA corn or soybeans is granted a safe harbor, with Treasury citing an example where CSA corn used in SAF production achieves a 53% emissions reduction.

Regulatory alignment and definitions:

The definitions and practice requirements outlined by the Treasury in their notice align with USDA’s Natural Resources Conservation Service (NRCS) practice standards and enhancements, with specific details provided in the notice.

Related Story: SAF IRS Guidance Released - Is it Worthless?

CSA pilot program practices:

No-till farming defined:

No-till involves limiting soil disturbance to manage the amount, orientation, and distribution of crop and plant residue on the soil surface year-round.
Residue must not be burned and should be uniformly distributed over the entire field. Removal from the seeding or transplanting area is acceptable.
In-row soil disturbance is permitted during strip tillage, planting, and when closing seed rows/furrows. Full-width soil disturbance is prohibited between crop cycles.
The Soil Tillage Intensity Rating (STIR) for the crop interval must not exceed 20. Examples include a tandem disk (STIR 19.5) and a rotary stalk chopper (STIR 31.2).

Cover crop practices:

Include grasses, legumes, and forbs for seasonal vegetative cover.
Planting must adhere to local criteria regarding species, seedbed preparation, seeding rates, dates, depths, fertility, and methods.
Cover crops should be compatible with other cropping system components and selected herbicides.
Establishment can occur during the fallow season, or as companion or relay planting.
Residue from cover crops cannot be burned, and crops must be terminated according to NRCS guidelines.
If grazed or hayed, management must not compromise soil health or organic matter.
Cover crops cannot be harvested for seed.

Enhanced Efficiency Nitrogen Fertilizer (EENF) practices for corn:

EENF is used to improve nutrient use efficiency, reduce nutrient loss risk, and lower greenhouse gas emissions.
Defined by AAPFCO as products that increase plant uptake and reduce nutrient losses compared to standard fertilizers.
For corn, strategies include using nitrification inhibitors, urease inhibitors, or slow-release fertilizers for a minimum of 50% of nitrogen applications.
This practice does not apply to soybeans as they do not require added nitrogen.

Upshot: These practices and definitions are integral to the USDA CSA Pilot Program and aim to enhance sustainability in crop production by minimizing environmental impact and improving resource efficiency.

Record Keeping Requirements for Farmers in the CSA Pilot Program

General records:

Maintain records on the type and amount of feedstock produced.
Document ownership or operational control of the enrolled land; if leased, the lessee must declare operational control.
List all CSA practices implemented as per the guidelines.
Sign a letter of intent to continue using no-till and cover crops on the same acreage, allowing periodic tillage only once every five or ten years.
Declare that the produced feedstock using CSA practices is exclusively for SAF production and affirm no sale of GHG offset credits or associated GHG benefits.
Provide all records to an unrelated third party for verification.

Crop-specific records:

Document crop rotation and tillage practices for each crop before implementation and note any changes to ensure compliance with no-till practices.
Record planting and harvesting dates for each crop, detailing the month and year.
Document field operations and the timing of these operations.
Record total planted and harvested acreage and yield for crops produced under the no-till system and sold as SAF feedstock.
Keep records of seed purchases, seeding dates and rates, and field locations (using FSA maps or other reliable sources).
Document the amount of SAF feedstock delivered to various points such as elevators, millers, refiners, or other delivery locations.

Cover crop and fertilizer management:

Maintain similar records for cover crops as required for primary crops.
Keep management records for the use of Enhanced Efficiency Nitrogen Fertilizer (EENF) strategies.

Bottom line: These record-keeping practices are crucial for ensuring accountability and verifying compliance with the sustainable practices stipulated by the CSA Pilot Program.

SAF producer requirements

Contractual obligations:

Farmers must have a direct contract with the SAF producer.

Record keeping and compliance:

SAF producers are responsible for collecting and maintaining all records from each supplying farmer. Note that the EENF portion is not relevant for soybean production.
Maintain full supply chain traceability records as per requirements.
If a grain elevator is used as an intermediary for storing feedstock, it must also maintain appropriate records linked to those bushels.

Intermediary entities:

Any intermediary entity that takes physical possession of the feedstock, including the registered SAF producer, must comply with traceability requirements aligned with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Documentation and forms:

Forms for farmers to provide their supporting information for the CSA Pilot are included in the notice covering the process, ensuring transparency and adherence to guidelines.

Impacts and Implementation

CSA pilot program requirements and participation:

All three CSA actions are required for corn, while only the first two (no-till and cover crops) are needed for soybeans.
Soybeans might qualify more easily due to the commonality of no-till, but fewer farmers use both no-till and cover crops together.

Land eligibility and coverage:

According to the Census of Agriculture, no-till is practiced on 105.2 million acres, but cover crops are much less common at 17.99 million acres.
There are 382 million acres of cropland, with 301 million acres harvested, raising questions about the universe of land eligible for the CSA Pilot.

SAF production and consumption:

SAF consumption has risen from 5 million gallons in 2021 to 24.5 million gallons in 2023.
The limited number of SAF producers in the US could pose a challenge for meeting program goals.

Periodic tillage and soil health:

Periodic tillage is crucial for some farmers using no-till to maintain soil health, requiring clarity on permissible tillage practices under the program.

Record-keeping requirements:

Farmers must maintain detailed records and provide them to third parties for verification.
Elevators used by SAF producers for storing CSA commodities also have specific record-keeping requirements.

Regulatory and financial considerations:

New domestic plants using the ATJ pathway with ethanol as feedstock are expected, though details are sparse.
Farmers selling CSA crops to SAF producers cannot earn GHG offset credits or sell associated GHG benefits, impacting participation in private carbon credit efforts.

Future developments and clarity:

The Clean Fuel Production Credit (45Z) starting in 2025 will require further modeling, data assumptions, and verification.
A new 45Z-GREET model will be developed to align with the 45Z tax credit, necessitating rapid development and expanded use of cover crops.

What is a Carbon Intensity Score (CSI) and what does it mean for farmers? We share some FAQs from farmers.

Farmers Express Optimism In Purdue's Latest Ag Economy Barometer

Thu, 04 Apr 2024 21:24:54 GMT

Purdue’s March ag economy barometer is up to a reading of 114 – an increase of three points from February.

Dr. Jim Mintert, professor of agricultural economics and director, Center for Commercial Agriculture at Purdue University, says the results of the latest barometer can be traced back to an increase in farmer optimism.

“All of the increase was attributable to people becoming more optimistic about the future,” he shared on a recent episode of AgriTalk. “The future expectation index was up five points compared to last month, and that was seven points higher than a year ago. So, it really had to outweigh the fact that the current condition index was actually down a little bit compared to last month and down substantially compared to last year. That was interesting.”

Mintert believes the rise in sentiment comes back to interest rates.

“The thing we were able to point to the most was the fact that people became more optimistic about interest rates and interest rates going down over the upcoming year, and potentially the impact that would have on the ag sector in general in ag incomes,” he says. “Although people didn’t explicitly tell us as it was interest rates, when you looked at some of the other questions, it appeared the change in interest rate outlook did impact their viewpoints.”

In the March barometer, which was conducted March 11-15, 48% of respondents shared they anticipate U.S. prime interest rates to decline over the next year – which is an increase from the 35% who had this outlook in December 2023.

“The shift is quite remarkable,” Mintert says. “Last summer, 60% of the people surveyed thought rates were going up. This month, only 32% of the people in the survey think rates are going up.”

At the same time, just 20% of respondents said the risk of rising interest rates was their top concern. The majority – 36% - were more concerned with high input costs.

“I think what people are telling us is they think the margin squeeze we’re experiencing right now with high breakevens and weakening commodity prices, is a little bit of a temporary phenomenon,” Mintert says.

Two Surprises
One area of this month’s results Mintert says is surprising also relates back to the respondents’ outlook on interest rates.

“The short-term farmland index actually jumped up nine points, and that’s a fairly big move for that index in a one-month span. That left it 11 points higher than this time last year,” he says. “The No. 1 reason we could come up with was the expectations for some softer or weaker interest rates.”

The second surprise came from the number of discussions around solar energy and carbon capture.

“12% said they’d had a conversation in the last six months [involving solar energy], which was kind of interesting,” he says. “We’ve been surprised at how many people tell us they’ve been talking to somebody about carbon capture – 18% said that they’d had at least a conversation.”

The Scoop Podcast: How To Gear Up For Carbon And Sustainability Programs

Thu, 28 Mar 2024 15:05:31 GMT

Tim Hushon, sustainability and technology director at The Mill, details how sustainability factors into their ag retail business and how to partner with farmers on the technology adoption required.

Hushon shares his role is focused on carbon markets, conservation focused efforts and emerging sustainability opportunities for growers, and therefore it ties directly into the technology required for those programs.

“This ranges from the recommendation to the fertilizer application,” he gives as an example. “We ultimately need to be gearing up toward sustainability. Growers need to make sure that they’re collecting the data, and accurately recording the data. The value of data is only increasing year in and year out.”

He says it is a challenge at times to get all the records assembled and it often requires piecemealing it together to get the puzzle pieces in place.

The Mill has been involved in carbon programs for three years, and Hushon shares there have been challenges to find farmers and fields who can qualify for carbon opportunities requiring a practice change. Many of their growers across Maryland into Pennsylvania and the Delmarva region are long time no-tillers and have been using cover crops.

Therefore, for the growers he works with, he sees greater opportunities with nitrogen reduction programs. He points to federal programs identifying particular watersheds.

“We’re trying to figure out how we can get involved and help coach these growers to participate, and ultimately may lead to them spending less money on inputs, which is pretty novel for a fertilizer dealer,” he says.

Hear more from Hushon, including details about the new equipment technology the team at The Mill is taking to the field in 202 4 in The Scoop Podcast.

How To Earn Passive Income With Sustainability Programs

Tue, 26 Mar 2024 12:00:19 GMT

By Darryl Matthews

Passive income is income acquired with minimal labor to earn or maintain, and it’s usually combined with another source of income. Rental income is the best-known example of this. There are several sustainability practices farmers can implement on the farm to begin to create their passive income.

Creating these payments requires effort and sometimes capital investments (no different than rental income, which requires both effort and capital investment).

Nitrogen Programs
Implementing a nitrogen management program is likely the most straightforward sustainability program to execute on the farm to create passive income. Truterra, Nutrien Ag Solutions and Indigo Ag all have nitrogen management programs farmers can implement to receive up to $5 per acre. They require a reduction in your total nitrogen applied and, in the case of Truterra, only farmland in Illinois, Indiana, Kentucky and Ohio is eligible.

A nitrogen management program might be easier to implement as it does not require significant capital investment or major changes in your farming practices. Adding nitrogen stabilizers, implementing variable rate fertilizer, or splitting the application of nitrogen can reduce and improve the available nitrogen for your crops.

To ensure you do not impact your yield, you should build a plan with your local adviser or agronomist to ensure you can qualify. Ask your local ag input retailer about nitrogen management programs.

Practice Change
Implementing no-till or strip-till on the farm as a sustainability practice can make you
eligible for certain USDA financial assistance program payments. For example, the USDA financial assistance program’s potential payout is currently $25 per acre for implementing no-till or strip-till on your operation.

There are many benefits to no-till, which come with time and effort; however, these practices take significantly more effort and capital investment. USDA Economic Research Service reports just 34.6% of U.S. cropland is farmed using no-till practices. Implementing no-till is harder and requires more effort to implement and maintain than some of the other options.

Carbon Credits
Qualifying for carbon credit programs is another sustainability practice that can create passive income. This requires effort and a close relationship with your carbon credit supplier.

There is potential to be paid $30 per acre from Truterra or Indigo Ag, but at the same time, this does require changes in farming practices, for instance, adding cover crops, reducing tillage and rotating crops.

New Technology To Increase Carbon And Sunlight Capture In Corn

Wed, 20 Mar 2024 17:25:52 GMT

ZeaKal has expanded their PhotoSeed technology into corn – aiming to increase the plants’ oil production in a sustainable way.

“This trait technology allows us to elevate the overall value of U.S. corn and creates a differentiated, value-added product that addresses industry demand,” says Han Chen, co-founder and CEO of ZeaKal. “U.S. farmers need innovation faster if we hope to compete in a challenging global commodity market. While we cannot change sunlight availability and geography for our growers, we can bring a latitude advantage to them through genetics.”

The company’s PhotoSeed technology was initially announced in 2021 for use in soybeans, with commercialization expected for the 2024 growing season.

PhotoSeed is a trait meant to help plants capture more carbon and sunlight by increasing the photosynthetic capacity. This then results in increased oil production and better yields without more inputs on the grower’s end.

Now being trialed in corn, it’s been found to increase corn oil composition by an average of 23%. PhotoSeed corn commercialization is expected in the 2027 growing season.

According to ZeaKal, the use of PhotoSeed technology also has the potential to lower a crop’s carbon intensity score.

“The future of agriculture must be grounded in innovation that democratizes value creation or else agriculture will not be responsive to demands for improved sustainability, nutrition, and energy,” Chen says. “Starting with the grower, our vision is to leverage trait technology and replicate our NewType model to ensure value creation and sharing across the entire supply chain.”

Gaining Traction: What Farmers Need to Know Now About Carbon Intensity

Tue, 19 Mar 2024 21:32:12 GMT

Since launching the Billion Bushel Challenge in late 2023, Mitchell Hora is on his 25th speaking engagement to educate farmers about the opportunity around carbon intensity (CI) scores.

As of Jan. 1, 2025, biofuels producers can qualify for 45Z tax credits, which were part of the Inflation Reduction Act. Grain will be assessed with a CI score, which has a set of parameters determined by the Department of Energy. Currently, the standard CI score for corn is 29.1, and per the 45Z provisions, the weighted CI score average needs to be below 25.

Hora says his company, Continuum Ag, has helped get CI scores on more than 160 million bushels already. And of course, 20 points below the baseline.

As Hora explains, that is where there is potential money to be made.

“As farmers we can lower our carbon footprint, get that score ran, get it verified and help our friends with the ethanol companies to maximize this opportunity utilizing a more sustainably produced crop,” he says.

What type of financial benefit farmers receive is still yet to be ironed out, and it depends on the ethanol producer.

“The ethanol companies, if they are paying federal income tax, will be able to utilize these credits to reduce their tax liabilities. If the company doesn’t pay federal income tax, or creates more credit than what they need, those credits can be resold on the secondary market,” Hora says.

He sees the financial payout to farmers varying on a spectrum. Already, he says one ethanol producer is paying farmers a 2-cent premium on grain with verified data.

Additionally, he has heard one ethanol company say after they cover their expenses, they are planning to pay the farmer 100% of the tax credit value.

What farmers need to know now

“We are talking about fuel produced in 2025, but that is going to use the crop we are growing this year,” Hora says.

Because the CI score depends on current management practices, farmers have the opportunity to start tracking, documenting and making decisions that will drive their CI score.
“It’s time to get the data organized,” Hora says. “This is due to sunset in 2027, and it may be extended—we don’t know. But it’s a short time frame for this opportunity.”

Why this is different than previous opportunities

Hora highlights how CI scores are applicable to every farmer.

“My family has been no tilling since the late ‘70s with cover crops. With other carbon programs we didn’t qualify because we were already doing the practices,” he says. “That’s not the case of carbon intensity. It’s strictly about what is the carbon footprint of your 2024 bushels. It’s per acre and per year.”

How To Increase Your Potential SAF Tax Credits Now

Carbon’s Next Chapter On The Farm

Inside AMVAC's Strategy To Widen Precision Agriculture Adoption

Mon, 11 Mar 2024 19:32:43 GMT

Farm-level production data is critical for precision agriculture and sustainable production systems, but many factors continually stand in the way of farmers willingly handing over that currency.

“It’s human nature to ask, ‘What’s in it for me?’ and farmers are human,” says Rick Rice, director, application technology, AMVAC Chemical Corp . “As an industry, we must make certain that farmers realize value from data they provide and that they’re confident it won’t be used for purposes other than those defined in the data sharing agreement.”

America’s Conservation Ag Movement (ACAM) visited with Rice to discuss what he’s experienced in his career in precision agriculture, what he feels is needed to bridge the data gap and how AMVAC is helping to provide those solutions for farmers.

During your time working with farmers in this space, what have you experienced in their attitudes toward data and data-sharing?
I’ve worked in the precision/prescriptive ag space for 15+ years and I’ve learned farmers don’t want to share proprietary data with an entity that will use it to make money unless there’s a clear understanding about how they’ll share the money.

On the other hand, most farmers I’ve worked with are very willing to share data with companies that clearly define the limited purpose for which it will be used, particularly when it’s to improve algorithms that will make a particular type of software work better. Every data system in use by farmers today was designed and tested using data that farmers shared with designers.

How is AMVAC working to provide solutions to growers that help streamline data measuring, monitoring, reporting and verification?
AMVAC’s Ultimus technology is a supply chain tracking tool that will also increase food transparency for consumers throughout the food chain.

Ultimus starts with an RFID tag that the crop ag input manufacturer attaches to each container, whether it’s as large as a railcar of fertilizer solution or as small as a pint-sized bottle of pesticide. The RFID tag serves as a certificate of origin confirming the container’s contents, and also allows comprehensive tracking of the container. The tagged SKU is scanned as the container moves through each step of the supply chain, allowing each entity with access privileges to see precisely where it’s located, 24/7. Even if some portion of the contents is transferred from the original tagged container to a different or smaller container, the transfer is recorded and tracked in Ultimus.

When a farmer is ready to apply the contents of a tagged container, those contents are transferred through a device that passes to Ulitmus-enabled application equipment the certificate of origin information from the container’s RFID tag, along with the quantity of product removed from the container in that individual dispensing transaction. When that data is matched with the equipment’s as-applied recordkeeping system, a verifiable application record is produced that can be shared with anyone the farmer chooses.

We frequently hear consumers want to know where their food came from, but that’s only part of the story. They also want to be confident the crop was produced in conformity with regulated and recommended crop production practices ensuring food will be safe for them and their families. Ultimus makes it simple and cost effective for farmers to provide verifiable application records of inputs used to produce crops that go into human and/or animal food products.

I believe Ultimus has the potential to change our entire industry, as we make it easy and affordable to provide transparency to consumers, food companies and others with an interest in confident answers regarding who applied what, when and where and at what rate, for every product applied to each field.

Productivity and sustainability must align with profitability to gain adoption on farms. How does AMVAC and your solutions help ensure increased profitability for your customers?
The operative word is solutions. It’s not enough to deliver a break-even solution. The first sustainability test for any farmer is: “Will my profits increase if I use this product?” Every farmer who applies an AMVAC-brand product believes the answer to that question is yes. Because we’re in the business of selling prescriptive solutions, one of our jobs is to help farmers better understand where the “yes” locations are in their fields and, just as importantly, help them avoid applying our products in the “no” locations.

A recent Trust In Food study found 70% of farmers would be willing to start or increase their use of precision farm management technologies if they could be financially incentivized to do so. How is AMVAC solving for this barrier with your customers?
AMVAC was one of the original sponsors of Farm Journal’s ACAM. Through our association with ACAM, we had an opportunity to help draft program rules for the Trust In Food (TIF) Climate Smart Ag Practices grant program that define sustainable farming practices which would qualify farmers to receive cost-share reimbursements. We believe the grant program is a great tool to help farmers implement sustainable farming practices because the reimbursements minimize the financial risk of trying something new. The purpose isn’t to provide a forever subsidy for a particular practice, but instead to act as a catalyst for new conservation practices in particular areas and by individuals who might not risk implementing the practice without a financial safety net. The long-term objective, however, is to allow participants to demonstrate to themselves and their neighbors that new sustainability practices yield positive financial benefits on their own and will continue to do so long after the three-year reimbursement program has ended.

With ACAM and TIF, AMVAC believes the most effective method of marketing to farmers is via word of mouth from farmer peers who have had first-hand experience. This starts when first-year farmer participants in the TIF program tell their neighbors they ought to consider participating in the Climate Smart grant program. After the grant program has ended, that same word of mouth should continue as farmers from the program continue to use those practices knowing they truly are sustainable both environmentally and financially.

There is confusion in the carbon credits market around standards for measuring, monitoring, reporting and verifying data. What is a big step that, you believe, can be taken to provide clarity across the value chain for this issue?
The measuring process is fairly straightforward. Independent entities such as the American Carbon Registry and universities have confirmed that if a farmer does X practice, Y tons of carbon will be sequestered, or better, not released into the atmosphere.

The real challenges are with reporting, monitoring, and verifying. Today, essentially all reporting activity requires manual entry along with confidence in the reporter’s integrity and accuracy. I don’t believe there’s a community on earth with higher overall integrity than American farmers, but we’ve all heard about a few bad actors. Even farmers with the very best intentions can make honest reporting errors.

This is why monitoring is an essential element of carbon markets. Businesses that purchase farmer-produced carbon credits demand monitoring because they need to be confident those credits won’t or can’t be reversed in the future. But monitoring, whose only purpose is to identify reporting errors, is expensive because it’s human based, manual, and time consuming. It takes the lion’s share of the value of ag-based carbon credits. Consequently, monitoring all the qualifying farm practices that can generate ag-based carbon credit is just not financially feasible, yet without universal monitoring, verification is impossible. It’s a real Catch-22.

Ultimus helps address this dilemma for credit-eligible practices – such as reducing the application rate of synthetic nitrogen fertilizer, or applying nitrogen-fixing supplements or soil health products – by completely automating the verification process.

What is the biggest opportunity agriculture has right now in terms of accelerating climate-smart work?
I believe the real accelerator will come from reducing greenhouse gases (GHG) linked to use of synthetically manufactured nitrogen fertilizer. All commercially grown non-leguminous crops require supplemental nitrogen, most of which comes from synthetically manufactured nitrogen fertilizer. Though the manufacturing process is improving, the methods used to produce synthetic nitrogen result in significant releases of nitrous oxide into the atmosphere. So, if the number of synthetically manufactured nitrogen units can be reduced significantly, a corresponding reduction in GHG emissions would result, and GHGs not released into the atmosphere won’t have to be sequestered.

Farmers can’t reduce the number of nitrogen units required by their crops without a corresponding reduction in yield. However, with the advent of nitrogen-fixing supplements like iNvigorate, Envita and Proven 40, farmers can now obtain a portion of a crop’s nitrogen requirement from free atmospheric nitrogen. A great deal of capital is being invested in development of a better class of nitrogen-fixing supplements. I believe these investments will yield dividends and that farmers should anticipate replacing ever increasing quantities of synthetic nitrogen with free atmospheric nitrogen. When that happens, GHG emissions from the manufacture of synthetic nitrogen will decrease, nitrogen-related field GHG emissions will diminish, and less nitrogen will leach from fields into waterways. And because verification of reductions in synthetic nitrogen fertilizer can be automated, reduced use of synthetic nitrogen can, in my opinion, be the most rapidly adopted climate-smart practice to enable a broad community of farmers to begin realizing new income from the sale of carbon credits.

Farm Journal’s The Scoop recently named BioWake as its new product of the year for 2023. What does that product offer growers who are interested in sustainability for their operations? What is next for the BioWake brand?
We are thrilled to have The Scoop’s audience vote BioWake as the readers’ choice new product of the year . BioWake has two key technology components that will further sustainability efforts for farmers. The first is a soy-based seed fluency agent that is a technology delivery system for live microbes. This protein is carcinogen-free, non-abrasive to seeds, made entirely from U.S. soybeans and not present in the soil after 28 days. It’s a direct replacement for graphite or talc-based lubricants yet provides the same flowability and singulation and eliminates the mess and harm associated with them. The second component of BioWake are the microbes themselves: pink-pigmented facultative methylotrophs (PPFMs), which quickly colonize the plant and form a symbiotic relationship, producing molecules that help plants take in more nutrients and encouraging earlier, more vigorous root development. We’ve seen sizable increases in the root area, depth, and root tips of both corn and soybean treated with BioWake. Larger roots lead to improved yields and also add to the overall health of the soil.

We launched BioWake for Corn and BioWake for Soybeans in 2023. For 2024, we are expanding the line by adding BioWake for Cotton and BioWake Prime™. BioWake Prime is an EPA-registered bioinsecticide product designed to mitigate corn rootworm larval feeding and damage. Trial results from 2023 showed an 8 BU/A win advantage across 56 data points, with a 68% win rate. It offers farmers a convenient addition to their current corn rootworm strategy.