Carbon Payments

INITIATIVE CARBON BY INDIGO CIBO CARBON CREDITS CORTEVA ESMC'S ECO-HARVEST NORI CARGILL'S REGENCONNECT SOIL AND WATER OUTCOMES FUNDS 2024 TRUTERRA CARBON PROGRAM

Cover crops Reduced tillage Crop rotation Nitrogen management

Cover crops No-till Reduced till Nitrogen management

Cover crops Reduce tillage Nitrogen management Increasing biodiversity

NRCS Conservation Practice Standards Cover crop Reduced tillage Nutrient management

Crop rotations Cover crops Perennials Reduced tillage residue synthetic fertilizers

Sustainable practices such as cover crops, reduce tillage, and no-till

No-till, cover crops, and extended crop rotations

Strip/no-till and/or cover crops

Carbon farming practices allowed

75% of the carbon offset sale revenue with a guaranteed minimum payment of $15 per metric ton of carbon offsets for the 2022 carbon crop. 50% of payment is paid in year 1, 20% in year 2, 10% in years 3-5.

Payment structure

Once credits sold, 80% of sale revenue.

75% of the average carbon offset price sold in Indigo Ag with a floor of $20 per credit. Payments are made after carbon credits sold, and vested over a 5-year period.

Producers receive a minimum of $15 per metric ton of carbon insets.

Once carbon offsets sold, 100% of the selling price, and additional 25% is charged to the buyer.

Up to $35 per metric ton of carbon sequestered. A minimum guaranteed payment is issued in Feb. of the year following the enrollment, balance paid after verification in next Jan.

Average payment of $34 per acre for all environmental services. 50% paid within 30 days of signing agreement (spring), and 50% paid after annual verification (Nov./Dec.).

$30 per metric ton of carbon with a minimum of $2 per acre upon final

Third-party verification: random site visits and evidence checks, registry-approved methodology.

Monitoring, Verifying, and Reporting

Verification by Verra. Verification by Climate Action Reserve.

Annual data reported by producer and/ or Advisor and/ or imported from other third-party data collection systems by the end of the year.

Third-party verification: remote sensing and site visits to small subset of randomly selected producers.

Third-party verification with extra cost at least every 3 years and in year 10.

Monitoring and Verifying by Regrow using field data and OpTIS remote sensing.

Verification by Soil and Water Outcomes Fund: Yearly field visits, remote sensing. Corn, soybeans, wheat, and sugar beet growers using John Deere's precision ag technology may opt to share field data management data directly with SWOF through the JD Operations Center.

Not specified.

Before May 1 for spring/summer crop

Enrollment period

Anytime

March–September 15.

Start of the calendar year until all acre limits met

Not yet specified

Anytime

www.indigoag.com/carbon

Website

www. cibotechnologies. com/getcarbon/

www.corteva. us/products-and-solutions/digital-solutions/carbon. html

ecosystemservices market.org/eco-harvest/

nori.com

www.cargillag. com/grow-with-cargill/ RegenConnect

theoutcomesfund. com/

www.truterraag. com/enroll

Contract Length 5 years, 2X renewable 10 years, can opt out in year 4 5 years 5 years, 3X renewable 10 years of practice change 1 year, unlimited renewable 1 year, unlimited renewable 1 year

Source: Iowa State University

Carbon Payment Opportunities for Farmers

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INITIATIVE ADM's Regenerations Bayer Carbon Indigo Ag: Market+Source PepsiCo-PCM Truterra's 2024 Nitrogen Management Incentive Truterra's 2024 Truterra Financia Assistance

Source: Iowa State University

Carbon initiatives offering payments per Practice

Carbon farming practices allowed Varies by state. Cover crops; no-till; strip-till; nitrogen management; and living roots. No-till, strip-till, and cover crops. Cover crops, minimal or no-till, fertilizer management, and others. Cover crops, no-till or strip-till; and MRTN/10% nigrogen reduction. Nigrogen management. Strip/no-till and/or cover crops.

Qualifying practices (additionality) New or existing practices. New or recent adoption. Varies by programs. New practices. New practices. New practices.

Contract length 1 year. Initially 5 years with an additional 5-year renewal up to 3X times, plus an additional 10-year retention period. Single-season contract. 1 year. 1 year. 1 year.

Type of payment Cash. Savings in Bayer inputs. Cash. Cash. Cash. Cash.

Payment structure Payment rates vary by programs, practices, and states (1) Climate-Smart Commodities Payment: $25 per acre per year for new cover crops in fields not enrolled in any federally funded programs. (2) Standard Practice Payment: $10 per acre per year for new cover crops in fields enrolled in federally funded programs. (3) Additional Wheat Payment: $2 per acre per year for no-till or strip-till and $5 per acre for nitrogen balance in wheat fields. Producers receive payments upon verification in May. Up to $6 per acre per year for no-till/strip-till, or cover crops, and up to $12 per acre per year both. Payment is paid annually upon practice verification in fall. A price premium is paid after crop delivery. Cover crops - $15 per acre per year (years 1 & 2: one before corn and one before soybeans), $10 per acre per year (year 3+); No-till/Strip-till - $10 per acre (years 1 & 2), $5 per acre (year 3+); Nitrogen reduction - $10 per acre per year (year 1 only); Cover crops + no-till/strip-till - $20 per acre per year (years 1 & 2), $15 per acre per year (year 3+); No-till/strip-till + nitrogen reduction - $15 per acre per year (years 1 & 2); All 3 eligible practices - $25 per acre per year (years 1 & 2), $15 per acre per year (year 3+). $5 per acre per year upon verification. $25 per acre for strip/no-till, $55 per acre for cover crop addition, or $80 per acre for both practices upon data collection, farmer certification, and field verification of implementation of eligible conservation practices.

Look-back payment for past practices One-time payment of $15 per acre for cover crop implemented in 2018- 2022 that did not receive payments from EQIP/ CSP/RCPP One-time payment of up to $6 per acre per year per practice for continuously adopted eligible practices on or after October 2020. Varies by programs. None. None. None.

Stacking Allowed for cost-share from public programs only, but will receive a lower rate. Allowed for all types of cost-share from public programs, and for private ecosystem payments other than carbon. Not allowed. Allowed for cost-share from public programs only. Not allowed. Not specified.

Website admadvantage.com/ regen/ bayerforground.com/ farmers/carbon-initiative www.indigoag. com/marketplus/for-agribusinesses www. precisionconservation.org/ new-pepsico-incentive-payment-program/ www.truterraag.com/ enroll www.truterraag.com/ enroll

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