Farms.com Home   News

Carbon Markets — How Do You Measure Success?

Carbon Markets — How Do You Measure Success?

There’s a lot of talk these days about soil carbon markets and conservation practices. Companies that have made commitments to investors and Wall Street are ready to pay farmers for carbon credits to reduce greenhouse gases and mitigate climate change.

But do you understand how this all works and how to take advantage of these new programs? Farmers in a Farm Journal survey say they just don’t have enough information, and they are having trouble finding details in their area on how to apply for these programs. In fact, only 3% of farmers are taking advantage of the opportunity, and 55% say they plan to participate in the soil carbon market within three years. That leaves 45% of farmers saying no to the opportunity.

“The scariest part for farmers is we have big, lofty goals about carbon without having a reliable way to repeatedly measure the same sample and get the same answer each time,” says Meagan Kaiser, soy checkoff farmer-leader and soil scientist in Missouri.

Jack Cornell, the soy checkoff’s director of sustainable supply, sees this uncertainty as an opportunity: farmers can set themselves up for success in the years to come in areas that extend beyond carbon markets.

“Farmers are always improving their farms,” says Cornell. “They want to increase profitability, productivity and sustainability. They are stewards of the land, always working to care for what they have for the next generation.”

That’s why he believes this is the perfect time for farmers to renew their focus on improving their land by using conservation practices such as no-till and cover crops.

“While we are figuring out what the carbon market looks like, this is a great opportunity for farmers to start doing some investigations on their own ground on how to put carbon-smart practices to work,” he says. “We want farmers to be in a position to be flexible enough to adapt to the next round of changes or the next opportunity to make on-farm profit.”

Nevertheless, there is always cost and risk associated with starting anything new. Farmers are the ones putting it on the line while companies may reap the benefits without taking the same risks.

Click here to see more...

Trending Video

"Perfectly Timed" Rains: Above-Trend Corn and Soybean Yields??

Video: "Perfectly Timed" Rains: Above-Trend Corn and Soybean Yields??

Futures and options trading involves risk of loss and is not suitable for everyone.

Agricultural Market Update: Grain Prices, Crop Conditions, and Weather Impacts

Welcome back to our channel where we provide comprehensive updates on the latest trends and changes in the agricultural sector. This week, we're looking at significant movements in grain prices, crop conditions, and the effects of weather patterns. Let's dive into the details:

Grain Price Decline Grain prices have fallen to their lowest levels since 2020, with December corn down 4.3% and November soybeans losing 3.1%. This decline is partly due to the beneficial moisture brought by Hurricane Beryl to the Midwest, which has improved crop conditions significantly. The USDA reported that corn and soybean crops are in their best condition in four years, contributing to the downward pressure on prices.

Record Short Positions and Market Sentiment Fund traders have increased their net short positions in the corn market to a record level, with a net short of 347,000 contracts of corn. This reflects a bearish sentiment in the market, further influencing grain price dynamics. Similar selling trends were observed in soybeans and SRW wheat, indicating broad market caution.

Weather Impact and Forecast Hurricane Beryl has brought significant rainfall across Arkansas, Missouri, western Tennessee, western Kentucky, and southern Illinois, with more expected over Missouri, Illinois, and Indiana in the coming days. Despite this, the market is currently more focused on the moisture benefits rather than potential heat risks forecasted in the 6-10 and 8-14 day periods.

US Crop Conditions Corn and soybean conditions have shown slight improvements last week, with corn rated 68% good to excellent and soybeans at 68%. These are among the best ratings for this time of year since 2020, suggesting robust crop health that could continue to influence grain prices.

Winter Wheat Harvest and Spring Wheat Conditions The US winter wheat harvest is progressing well, ahead of schedule with significant portions already harvested in Kansas and Texas. Spring wheat conditions are also favorable, with 75% rated good to excellent, although there have been some declines in states like Idaho, South Dakota, and Washington. Brazil's Corn Harvest and US Exports Brazil's second corn crop harvest is advancing rapidly due to favorable hot and dry conditions, with 63% of the crop already harvested. Meanwhile, US corn shipments saw a substantial increase last week, indicating strong export demand, which contrasts with the recent drop in domestic grain prices.

Ongoing Developments Lastly, the USDA reported a flash sale of corn, with significant quantities sold to unknown destinations, scheduled for delivery over the next two marketing years. This could signal ongoing international demand for US corn despite lower prices.

?? Stay Updated: For ongoing insights into these issues affecting agriculture, make sure to subscribe to our channel. We bring you the latest information to help you understand the dynamics affecting global agriculture and markets.

?? Join the Conversation: How do you think these developments will impact global agricultural markets? What are your views on the current weather patterns affecting crop conditions? Share your thoughts in the comments below. Your input is crucial for our discussions.