Cupids Health

Carbon Markets 101: Breakeven Prices for Agricultural Practices



For farmers considering whether or not to enter the carbon market, it is important to consider the breakeven price of adopting new agricultural practices. The breakeven price represents the incentive level where adopting a carbon-sequestering practice becomes economically viable for the farmer. Data from a 2013 paper by IFC International provides the breakeven prices of carbon credits for tillage, fertilizer, and land retirement practices. We also discuss cover crops as a sequestration practice and the potential price of carbon credits.

For additional information see “Greenhouse Gas Mitigation Options and Costs for Agricultural Land and Animal Production within the United States”
https://www.usda.gov/sites/default/files/documents/GHG_Mitigation_Options.pdf

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