Interest in carbon market programs is surging among agricultural producers, particularly due to the current low commodity prices. This trend was prominently showcased at the 2025 Commodity Classic event, where farmers flocked to a panel discussion titled "Navigating the Right Carbon Program." The panel featured experts such as Jarod Creed of JC Ag Financial Services and Elite Ag Insurance, Kelly Garrett, Pete Meyer, and Kaylynn Henkenius.
Garrett, a sixth-generation farmer from Iowa, became a pioneer in 2020 by selling carbon credits to a corporate buyer. In 2024, he collaborated with Creed, Meyer, and Mike Busing to launch Regenerative Roots Solutions, aimed at assisting farmers in understanding and participating in carbon market programs. The panel addressed several critical aspects, including the state of the U.S. carbon market, data collection challenges, eligibility criteria, and global opportunities for farmers.
The U.S. carbon market has faced setbacks, partly due to policy uncertainties. Meyer noted that while Section 45Z of the Inflation Reduction Act (IRA) offers tax credits for clean transportation fuels, the financial benefits for farmers remain unclear. Instead, Meyer emphasized the importance of increasing corn demand, driven by airlines' commitment to net-zero emissions by 2050. This consumer-driven initiative creates new markets for sustainable agriculture.
On a global scale, Europe's mandatory carbon credit system contrasts sharply with the U.S.'s voluntary approach. While the European market reached approximately one trillion dollars last year, the U.S. carbon market is valued between $2-3 billion, potentially growing to $5 billion. Global buyers are increasingly interested in U.S.-produced carbon credits, recognizing the environmental benefits of sequestering carbon in soil.
Data accuracy is crucial for successful carbon credit transactions. Regenerative Roots facilitates this process by integrating with popular farm data platforms like John Deere Operations Center and Climate FieldView. Henkenius explained that they collect up to 80% of grower data and fill in gaps through direct communication with farmers. This ensures that the data is robust and verifiable, enhancing the value of carbon credits.
To qualify for carbon market programs, farmers can adopt various sustainable practices tailored to their region. These practices range from no-till farming and cover crops in Iowa to efficient water usage in Arkansas. Sustainability means different things in different regions, but all efforts aim to improve environmental outcomes while maintaining agronomic viability.
The financial impact of carbon farming is becoming significant. Regenerative Roots has already distributed $10 million to farmers in 2025, highlighting the potential for substantial revenue. With negative margins in traditional farming, carbon credits offer a viable alternative. For instance, Garrett estimates earning over $30 per acre from carbon credits, demonstrating the economic viability of these programs.
As the carbon market evolves, it presents an opportunity for farmers to diversify their income streams while contributing positively to environmental sustainability. By embracing innovative agricultural practices and leveraging accurate data, farmers can thrive in this emerging market, fostering a more resilient and sustainable future for agriculture.