Growers unconvinced that carbon-capture farming can be profitable; agribusiness execs remain focused on investment

Soil can retain carbon for years if left undisturbed. (Photo by
Andrew Caballero-Reynolds, Agence France-Presse via Getty Images)

Fact: Undisturbed soil can safely retain converted carbon for years. But farmers are skeptical that it is a profitable use of farmland, reports Patrick Thomas of The Wall Street Journal: "Agriculture companies are investing millions of dollars to develop farming programs designed to capture more carbon dioxide in fields, as a possible solution to mitigate climate change. "The challenge: convincing farmers that it is worth their time, the costs of new farming practices and potentially losing out on some of their harvest in the process."

Thomas cites Iowa corn farmer Chris Edgington, chairman and a former president of the National Corn Growers Association, who "said he has looked at various carbon programs over the past year, calculating the risk of reduced crops as he adjusts the way he manages his crops and the potential compensation for the carbon his fields could capture. So far, he said, he hasn’t signed up." Edgington told Thomas, "At the current economics, it will be a real challenge to grow."

Carbon-capturing crops use photosynthesis to push carbon back into the soil via their roots after harvest. "The agriculture industry, which has come under increased environmental scrutiny in recent years, has said that paying farmers to maximize those natural processes can help make them part of a potential solution. Carbon programs also give companies a potential new revenue stream, as they project farm-generated carbon offsets will draw demand from food manufacturers, airlines and tech companies seeking to offset their own carbon emissions."

So far, farmer participation has not matched investor enthusiasm: "Less than 5% of the more than 1,300 U.S. farmers surveyed by McKinsey Consulting in 2022 said they participated in a carbon program, and more than 50% of farmers said an unclear return on investment was one of their top reasons for not participating," Thomas writes. "Agriculture executives said their farmer sign-ups are on track or exceeding expectations.  . . . Corteva officials said the seed supplier’s program is on track and that demand for carbon credits is expected to rise along with the price farmers are paid."

Thomas reports, "Farmers generally are paid $15 to $20 per ton of carbon sequestered under agriculture companies’ current programs, Bank of Montreal senior analyst Joel Jackson said. He estimated that farmers need to earn more than $50 a ton to make carbon programs economically viable for their operations."