Indigo Ag, a pioneer and trusted ally in sustainable agriculture, has announced the successful completion of its third carbon crop, solidifying its position as an industry leader in carbon programs.
With 163,048 carbon credits produced, Indigo Ag stands as the sole company to accomplish three carbon harvests at scale. The program demonstrates continued growth, marked by year-over-year increases in the number of participating farmers, fields filed, and credits generated.
Harvesting Hope: Farmers Lead the Charge in Carbon Sequestration
According to the Environmental Protection Agency, agriculture is responsible for releasing 10% of the U.S. greenhouse gas emissions in 2021. But the sector also has the means to remove and sequester those planet-warming emissions.
Crops, grasses, and other plants play a crucial role in sequestering CO2 from the air and with effective soil carbon capture and farming practices, they have the capacity to effectively draw down CO2.
The following chart illustrates the potential of various carbon farming practices in cutting emissions by decade until 2050.
Since its launch in 2019, farmers engaged in Indigo Ag’s carbon program have sequestered or abated nearly 300,000 metric tons of carbon dioxide. The corresponding carbon credits are rigorously verified and issued by the Climate Action Reserve, one of the leading carbon registries globally.
Each metric ton of sequestered CO2 generates one carbon credit.
To date, farmers participating in Indigo Ag’s sustainability initiatives, Carbon and Sustainable Crops, have collectively earned over $12 million. Payments for the third carbon crop are scheduled for March 2024.
Indigo’s carbon farming program offers companies seeking a market-based approach to capture and store carbon in soils, a credible, nature-based climate solution. The generated credits represent the efforts of farmers who have embraced Indigo’s climate-friendly farming practices, known as regenerative farming. Examples include planting cover crops and reducing soil tillage.
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The program is serving 5.5 million enrolled acres, 2,000 enrolled farmers, and issued 133,000 carbon credits.
Dean Banks, CEO of Indigo Ag, remarked:
“Our record-breaking third carbon crop reinforces that farmers can earn money and have a real and measurable impact leveraging agricultural soil as one of the world’s largest carbon sinks.”
Indigo’s latest batch of credits signifies the sequestration or abatement of 163,048 metric tons of CO2 by U.S. farmers across 28 states. The growth of Indigo’s carbon program emphasizes the increasing adoption of sustainable farming practices, with remarkable year-over-year increases:
- 333% surge in new acres,
- 297% rise in new fields, and
- 215% uptick in new grower participation.
Furthermore, Indigo collaborates closely with its expanding network of over 25 agribusiness partners to provide unique insights and support growers in advancing their transition to sustainable practices.
In September last year, the U.S.-based company raised +$250 million led by Flagship Pioneering. The goal of the funding was to further grow Indigo’s sustainable agriculture programs and bolster farmers’ revenues with carbon credits.
Indigo Ag’s Carbon Credits Gaining Traction
The company has broadened its network of carbon credit buyers by partnering with Watershed. It’s an enterprise climate platform that assists companies in measuring, reporting, and acting on their emissions to allocate credits to their corporate clientele.
Industry analysts predict that corporate demand for high-quality carbon credits will continue to surge. BloombergNEF’s (BNEF) report suggests that restoring trust in the market could encourage companies to buy billions of carbon credits annually. This can potentially increase prices to $238 per ton and bring market value to over $1 trillion yearly by 2050.
In this case, Indigo Ag foresees its soil carbon credit commanding higher prices in future crop cycles.
The ag tech firm is currently one of the only companies providing corporations with high-integrity soil carbon credits on the voluntary carbon market (VCM). This enables them to secure future buyer commitments with purchase prices ranging from $60 to $80 or more, depending on delivery time.
The forward price curve will result in increased earnings for the participating farmers over time, Banks further added.
Growing Green: Indigo Expands Carbon Program
Indigo is expanding its eligibility criteria for the 5th carbon crop, covering the 2023-24 planting season. It is also currently open for farmer enrollment.
Part of the expansion is adding more eligible crops for its sustainability programs, including hemp, perennial and annual alfalfa, millet, collard greens, and four perennial legumes. This offers farmers additional options for program eligibility, alongside existing crops such as corn, soy, and cover crops.
Furthermore, Indigo is collaborating with industry partners to streamline data importation and entry processes for farmers. It works whether they are importing data from spreadsheets or their FSA 578 insurance forms. Product enhancements include historical data validation and the capability to spread out carbon harvests.
More details on the fourth carbon crop will be shared in early 2025 when credits are slated for delivery.
Indigo Ag’s success in completing its third carbon crop marks a big step forward for sustainable farming. By helping farmers fight climate change and earn money, the company is making agriculture greener and more profitable.