Page 34 - Ebook_CoverCrops2022_Final

Farmers .need .to .add .something .new .to .their .operation . .That .could .
be .a .cover .crop, .that .could .be .no-till, .it .could .be .something .else . .
We .collect .a .fair .amount .of .data .from .farmers .about .what .they .do .

in .those .fields, .we .model .that .to .come .up .with .estimates .of .what .
the .environmental .benefits .are .and .then .we .structure .a .customized .
payment .to .that .farmer .based .on .what .those .outcomes .are .”

— .Adam Kiel
Executive .Vice .President, .
AgOutcomes

Smith said he’s still a little “green” on the pro- A similar program headed up by the Soil and
gram because this is the first year the farm is Water Outcomes fund exists; however, this pro-
enrolled. gram is not just targeted towards sequestering
carbon. It also aims to improve water quality.
“I think the intention is good and the goals
are good,” he said. “I don’t know where their Adam Kiel, the executive vice president of
money comes from, but again, I think that the AgOutcomes and a co-administrator of the
intention’s a good one for sure.” program, said it has the same principles as a

Corteva is another company that has become carbon program and the payments that are dis-
actively involved in the carbon market. Corte- tributed to farmers are based on environmental
va’s Carbon Initiative pays farmers a guaranteed outcomes.
$15 per carbon credit for practices like reduced “Farmers need to add something new to their
tillage, cover cropping and reduced applications operation,” Kiel said. “That could be a cover
of nitrogen, though the company says on its crop, that could be no-till, it could be something
website that it projects most farmers to receive else. We collect a fair amount of data from
about $30 per credit. These credits are mea- farmers about what they do in those fields, we
sured and verified through sampling and certifi- model that to come up with estimates of what
cation conducted by program partners Corteva the environmental benefits are and then we
and Indigo Ag. structure a customized payment to that farmer
based on what those outcomes are.”
“We pay on outcomes, we pay per ton. Which
means that if for some reason you need to Outside of cover crops, the program also incen-
change your agronomic plan to not include a tivizes farmers to add an extended rotation, con-
cover crop ... that’s just fine,” said Ben Gordon, vert a field into a perennial crop, and implement
the carbon and ecosystem services global port- no-till. According to the fund’s website, partic-
folio leader at Corteva. “You’re not going to get ipating farmers sign one-year annual contracts
paid, but there’s not going to be any penalty.” and can re-enroll if they are willing to continue
The credits are then sold to buyers in Corteva’s or include more practices.
network. Producers in the program do sign a According to Kiel, about 120,000 acres of land
5-year contract, but they can opt out of the in the United States were under contract in
program at any time. However, doing this means the program this year, with the average farmer
that they forfeit any unvested payments. payment at around $35 per acre. There is also

34 www.Agri-Pulse.com