Carbon credits could supplement crop insurance programs, farmers
An Indiana-based seed and chemical company says carbon credit programs could be included in crop insurance programs to help farmers offset startup costs.
Emma Fuller with Corteva Agriscience tells Brownfield cost-share programs could create additional incentives. “As long as the cost share is about the practices and not the carbon outcomes, these programs are complementary. You can get paid for carbon outcomes and participate in cost shares as long as the payment is for the practice and not the carbon.”
She says it’s another way to help farmers meet sustainability goals. “Crop insurance is well structured financially to say you can be financed up front to make these investments. Then, the crop insurer will reap the benefits of a more resilient field across time. It’s the same structure, but it’s lagging.”
Fuller says crop insurance companies could also benefit because higher organic matter created from conservation practices can reduce yield penalties. “They are giving lower premium perhaps to farmers who are willing to invest in soil health and the natural resilience so when those big extreme weather events happen, the damage isn’t as bad, and the payouts are less.”
Fuller spoke with Brownfield at the Chicago Board of Trade at a carbon credit issuance event hosted by Indigo Ag.