How much income can you make from Soil Carbon Farming?
How much income you can generate from soil carbon farming depends on a number of factors:
Size of Property
The first factor influencing carbon credit earnings is the number of hectares that you are carbon farming. The more land area you have available to implement soil carbon farming, the more income you are likely to earn. Carbon Sync develops soil carbon farming projects on farms with at least 250 ha of arable land.
Carbon Credit Price
Secondly, the current carbon price will be a major determinant of your carbon credit income. The earnings from soil carbon farming can vary widely, and the actual price of carbon credits can fluctuate based on market demand. The income earned from soil carbon farming may not be consistent from year to year.
Carbon Stored in Soil
Thirdly, the amount of carbon you can store in your soil per hectare will influence your carbon credit earnings. Carbon Sync believes it is possible to increase the total soil organic carbon in the top forty centimetres of soil by 1% over a 25-year project life. Current carbon price projections assume an upwards trajectory in the coming years. This assumption and Carbon Sync’s estimate of achievable organic carbon increases are critical. But if these variables eventuate, the value of carbon credits could equal or exceed the value of primary production outputs.
You can get an idea of the value of carbon credits earned by the first projects to be awarded soil carbon credits in Australia.
It’s also worth noting that while soil carbon farming can generate income, it is often viewed as a complementary practice. It works in conjunction with other forms of agricultural production rather than as a standalone revenue stream. Additionally, the upfront costs of implementing soil carbon farming practices may need to be taken into account when considering potential earnings. If you’re concerned about these upfront costs, you may be interested in our FREE soil carbon testing offer, which is available as part of the National Soil Carbon Innovation Challenge.
There are other advantages to soil carbon farming beyond the earning of carbon credits.