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Connecting the dots in carbon markets

There has never been a need to preach to farmers about the virtues of sustainability. By its very nature, farming is about working with the land and respecting the environment. Indeed, farmers stand to lose the most by engaging in agricultural practices that could degrade their water supply or damage the long-term health of their soils.  

Yet in some circles, in the vital climate change conversations taking place across all aspects of society today, farmers – indeed, the agriculture sector as a whole – have at times been singled out. Given that the sector currently generates 19–29% of total greenhouse gas (GHG) emissions, there is context for this sentiment. There are good questions to be asked, and most farmers jump at the chance to explain how they grow the food that ends up on grocery store shelves in a way that maximizes productivity, profitability and sustainability.

These one-off conversations are valuable, yet, how can we help farmers get their stories out to a wider audience? How can this industry support and empower farmers to demonstrate their stewardship of the land?

The answer is, ‘show don’t tell’. One way to do this is through the adoption of data connectivity across the entire farm ecosystem. Only by connecting the vehicles, machines, operators and advisors and documenting their actions will farmers be able to provide these ‘proof points’ that detail what happened on every inch of land. But, to what end? What’s in it for the farmer?

The challenge is connecting the unique data ‘story’ playing out on every farm, to global sustainability goals. As international organizations, corporations and governments around the world strive to achieve their sustainability commitments, many are eager to work with farmers and the food supply chain to drive more sustainable practices and outcomes.

One method of connecting these wide-reaching corporate and government sustainability goals with individual farm operations is the carbon credit marketplace. Carbon markets were introduced as a potential solution to combat climate change by creating a financial incentive for companies to reduce their carbon emissions. 

However, it’s new territory and there are some challenges, such as a lack of transparency and accountability in the market, which we will explore in an upcoming blog. For now, let’s consider the significant barriers of entry to farmers actually playing a meaningful role in carbon markets.

Farmers know they’re implementing practices and investing in technology that is improving their farms’ overall sustainability performance. Yet, they are sitting on the sidelines of today’s burgeoning carbon marketplace. Aside from some regions – such as Alberta, Canada, where the government has implemented a regulatory framework for aggregating farm data, verifying credits and overseeing transactions with buyers – carbon credit programs are often small-scale pilot projects not open to many farmers.

Carbon markets are relatively new and, as such, there’s a ‘wild west’ vibe as the various stakeholders work to establish and agree on protocols, develop verification standards and find ways to make the numbers work. What remains unclear is how, and when, farmers will find their place in this marketplace with the goal of connecting the sustainability gains they are logging in the field, with buyers wanting to purchase trusted, verifiable carbon credits. As true stewards of the land who are entrusted to feed a global population of 8 billion, they deserve a seat at the table.