How Farmers Can Explore Market Opportunities

Low commodity prices are driving interest in carbon market programs, according to Jarod Creed, owner of JC Ag Financial Services, and owner and partner of Elite Ag Insurance. That was evident at the 2025 Commodity Classic as farmers packed into the Successful Farming Main Stage to attend the panel “Finding the Right Carbon Program.” 

In addition to Creed, panelists included Kelly Garrett, Pete Meyer, and Kaylynn Henkenius.

In 2020, Garrett, a sixth-generation Iowa farmer with a 7,000-acre no-till operation, became the first farmer in the nation to sell carbon credits to a corporate buyer. In 2024, Garrett teamed up with Creed, Meyer, and Mike Busing to launch Regenerative Roots Solutions to help farmers navigate the different carbon market programs available. Meyers is a principal economist and partner at Regenerative Roots and Muddy Boots Ag. Busing is an agronomist who owns an ag retail business where Henkenius works as a sustainability adviser. The panel covered the state of the U.S. carbon market, the need for better data collection, eligibility qualifications, as well as the opportunities for farmers in the global market and the potential financial impact of signing up for a program.

The U.S. Carbon Market

“The U.S. carbon market has taken a step back,” Meyer said. “A lot of that has to do with the uncertainty with the Trump administration. We heard from USDA Secretary Brooke Rollins on Sunday beating up again on some of the programs that were in the Inflation Reduction Act (IRA), which included 45Z for sustainable aviation fuel (SAF).”

Section 45Z of the IRA provides a tax credit for production of clean transportation fuels, including for SAF. There are three buckets for how that credit could be divided up: the sustainable aviation fuel producer, the ethanol company, and the farmer for producing corn with a lower carbon intensity (CI) score. “A year ago, I was more excited about the financial possibilities for a farmer because it was going to be a dollar or 50 cents a bushel for a CI score of zero,” Meyer said. “But the fact of the matter is, once you get down to that third bucket, I’m not sure how much of it is going to end up in the farmer’s pocket.

“I think we have to focus less on how much money could possibly come to a farmer from 45Z and focus more on the demand for corn, which we are in desperate need of,” he continued. “The airlines are committed to net zero emissions by 2050 and SAF needs to be part of that program. It’s consumer driven, and it creates more demand.”

The Global Carbon Market

The U.S. has a voluntary carbon market with three states that have a mandatory carbon program through their low carbon fuel standard: California, Oregon, and Washington. In Europe, business owners must buy a carbon credit for each ton of carbon dioxide emitted. 

“We estimate that the U.S. carbon market is worth $2–3 billion and that may stretch to $5 billion,” Meyer said. 

How does that compare to Europe? “The European market last year was about a trillion dollars,” Meyer added. “When you combine the U.S. corn and soybean crop, that’s worth maybe $125 billion.”

The reason for that is, global buyers, whether it’s in Europe or Asia, “are very interested in the type of credits that the U.S. farmer produces by sequestering carbon in the soil,” Meyer said.

Regenerative Roots connects U.S. farmers with those global buyers. 

Better Data Collection

One key part of enabling these carbon credit transactions is ensuring accurate data collection from the farmers. Regenerative Roots facilitates this by taking a more hands on approach.

“We make a connection to the farmer’s data platform of choice. John Deere Operations Center and Climate FieldView are the two main ones,” Henkenius said. “From that platform, we’re able to get 60-80% of the grower’s data in most cases. Then I have a conversation with the farmer to go back and fill in any gaps.”

That could include adding in if a field has tile or irrigation or making sure that fertilizer passes from ag retailers are included. “Once data collection is complete, farmers move into contracting and payment,” Henkenius added.

That is the reason Regenerative Roots exists, Garrett explained. “Creed is going to make fun of me when he talks and tell you that I don’t even know how to log into my John Deere Ops Center, but Kaylynn does. And that’s the reason for that,” Garrett said. “None of our data is perfect, and it needs to be to go into these programs.”

Meyer added to that point: “The strongest carbon credits command a premium, and the strongest carbon credits are the ones with the cleanest data that can be verified in the shortest period of time.”

Program Qualifications

There are a variety of products and practices that farmers can employ that will make them eligible for carbon market programs. Those differ by region and should still be grounded in what agronomically makes sense for a grower, Garrett said.

“Sustainability means different things in different parts of the country. In the hills of western Iowa, no-till and cover crops are the first two that come to mind,” he said. “In southeast Arkansas, it’s water usage.” Other practices include variable rate fertilizer applications, integrating livestock, plant growth regulators, stress mitigation products, and nitrogen use efficiency products to name a few.

Financial Impact

In 2025 so far, Regenerative Roots has distributed $10 million to farmers from various programs. “It’s not chump change,” Creed said. “I wonder if there are going to be situations in the next couple of years where 10–20% of overall revenue on a farm is going to come from carbon farming.

“There are situations where we could be talking about $100–200 an acre based on practices,” he continued. “In an environment when we’re looking at $100–200 negative margins, it’s simple math.”

Garrett participates in Truterra’s carbon program and is waiting on his credits from 2022, 2023, and 2024 to go through their model, which should be done in a few weeks. He estimates that he nets a little over $30 an acre selling carbon credits.