Carbon markets showing a wide range of payments
An ag conservation expert says emerging carbon markets are experiencing volatile payout levels.
Michael Gill with the Illinois Soybean Association tells Brownfield payments to producers currently have a wide range.
“That range of payments is anywhere from $5 a ton to over $100 a ton,” he said.
Steve Cubbage with ag data consultant Farmobile said farmers will be able to participate on the higher end of that range with the more information they are able to track and retain.
Gill said premiums and ‘grades’ of credits will likely develop as the market grows.
“Let’s say you are a producer that has been no-tilling for 20 years, your credit on a carbon basis for adding a new practice may be worth more than maybe somebody that is fairly new to a practice,” Gill said.
He said like most young markets, carbon credit payments will have less variance as the market becomes more established. Gill and Cubbage spoke on an Illinois Soybean Association carbon market webinar Tuesday.