To generate a carbon credit, a producer must demonstrate a metric ton of C02 (or its equivalent in greenhouse gases (GHG)) was sequestered in soil because of the farmers’ efforts. Seems simple enough, but there is usually another requirement called “additionality” that makes this more challenging for many farmers already implementing conservation practices.

Carbon sequestration contracts for farmland are attempts to restrict usage of land. Historically, restriction on land were put in place by recording easements, mortgages, leases, or deed restrictions.

At a farmer meeting I attended recently, the hot topic was carbon reduction contracts. There was a lot of curiosity, confusion and skepticism among these farmers.