Intro to Carbon Markets: Carbon Markets 101

October 14, 2021

By putting a price on carbon, carbon markets can lead to earnings for farmers, while simultaneously providing a cost-efficient system to limit climate change. And, then it gets complicated!  We’ve worked to identify who does what, which marketplace is right for your operation, and to answer questions farmers commonly ask.

To get started: you farm in a way that sequesters carbon in the soil and partner with a carbon broker. The broker hires a verifier to measure the carbon sequestration. For every ton of carbon dioxide sequestered, a carbon credit is created.  This is then sold by the broker to corporate buyers, with some of the revenue being paid back to the farmer.  For a more in-depth look at the process, read this.

While we just covered the basics on carbon markets, I’m sure you have a ton of questions you need answered before you get started. Start by taking our carbon quiz to identify a carbon market that might fit your operation.  Then, take a look at this table – it’s the most comprehensive out there and covers all the main carbon companies and tells you how they differ.Join FarmRaise Premium to stay up to date on funding programs, including carbon markets, and gain access to office hours with our farm funding team.

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