Capturing carbon on the farm could be starting to pay off as Indigo Ag doubles the price it offers for planet-friendly growing practices.
Boston-based Indigo Ag said Thursday that it issued 110,000 credits as part of its second carbon “crop.” For this round, farmers will get $30 per credit. That’s up from the initial payments to farmers of $15 in September 2021.
The company uses digital platforms to connect buyers with farmers who capture carbon with practices such as refraining from tilling fields or planting cover crops to help minimize erosion. Issued by the Climate Action Reserve, the credits are sold to companies seeking to reduce emissions, with farmers receiving 75% of the proceeds.
Indigo said the credits were produced by 430 farmers in 22 US states. And the second payment shows there’s staying power, said Chief Executive Officer Ron Hovsepian. “By getting this second issuance in now, they can actually start to rely on this as a revenue stream,” he said in an interview.
Such funds may be needed more this year, with farm income levels expected to drop 16% after two record years, according to the US Department of Agriculture.
To contact the author of this story:
Michael Hirtzer in Chicago at firstname.lastname@example.org
© 2023 Bloomberg L.P.