Understanding Carbon Credits: How They Can Benefit Your Farm

Exploring the potential of regenerative farming and carbon credits with actionable insights for UK farmers.

Today we are going to be talking with Agrii's Sustainability & Environmental Services Manager, Amy Watkins and Thomas Gent, UK Market Lead for Agreena and regenerative farmer.

This episode will focus on the reality of carbon credits, how regenerative farming can be seen as carbon farming, and how can this benefit the farm business overall?

What Conversations Are Farmers Having About Carbon?

Carbon credits and regenerative farming are becoming critical topics for farmers, focusing on sustainability and profitability. Rising input costs, such as fertilisers, have driven many to explore practices like no-till and cover cropping. While some are actively engaged in trading credits, others remain cautious. Most farmers are now exploring the possibilities, collecting data, and considering their next steps.

How Do Farmers Earn and Trade Carbon Credits?

Farmers begin by establishing a carbon baseline, which involves reviewing field management over the last five years. Once the baseline is set, implementing practices like no-till, cover cropping, and optimising fertiliser use can improve carbon outcomes. These practices are verified through satellite tracking, soil sampling, and independent audits. After verification, farmers receive a report detailing their carbon performance, providing the option to trade or retain their credits.

What Data Should Farmers Focus On?

Farmers should concentrate on three key areas: fuel usage, fertiliser efficiency, and soil health. Minimising cultivation passes and optimising spray applications reduces fuel consumption. Fertiliser strategies should focus on ensuring nutrients are used efficiently, potentially through organic manures or inhibitors. Soil health improvements, such as boosting organic matter, not only enhance resilience but also unlock financial incentives like payments under the Sustainable Farming Incentive (SFI).

What Is the Financial Value of Carbon Credits?

The average UK farmer earns around £33 per hectare from carbon credits, with values ranging from £20 to over £50 per hectare. Practices such as reducing tillage, adopting cover crops, and leaving straw on fields significantly increase credit value. By stacking carbon income with schemes like the SFI, farmers can replace a significant portion of lost Basic Payment Scheme (BPS) revenue while maintaining production.

How Can Farmers Get Involved?

Getting started with carbon credits is straightforward. Farmers can register their interest with their Agrii agronomist or through an event. Agreena's team will then guide them through the process, including data collection and potential carbon valuation. This step-by-step support ensures that farmers can easily integrate carbon credit generation into their operations.

Are you eager to find out the value of your carbon?

Register for a free estimation by visiting this link and one of our team will be in touch