Description
Indigo Ag is the leader in sustainable agriculture, rewarding farmers adopting regenerative agricultural practices through two types of programs.
Carbon by Indigo: Indigo’s Carbon program is rooted in the concept that farmers can sequester carbon back into their soils and abate greenhouse gas emissions through regenerative farming practices and should be rewarded for doing so. Beyond the direct costs of transitioning to regenerative systems (e.g., new tillage/planting equipment, cover crop seeds and termination costs, etc.), farmers face significant social and cultural barriers that prevent large scale transition. Under this project, farmers must implement one or more new land management practice changes that reduce emissions and/or enhance soil organic carbon storage. Qualifying practice categories include cover crop planting and harvesting, tillage and crop residue management, and nitrogen application changes, and diversification of crop rotations. We also encourage farmers to stack these practices on fields over time, providing digital tools, agronomic educational resources, and performance feedback to empower them to optimize their farm business and maximize their environmental benefits. Transitioning to regenerative practices has been proven to reduce farm emissions, draw down carbon dioxide, and build carbon content in the soil. These practices also drive greater resilience to drought, water retention, and access to nutrients. In addition, the program brings new revenue into agricultural communities, building long-term financial sustainability. 75% of all carbon credit sales are paid to growers that implement eligible practice changes and generate credits, with the remaining 25% being split between Indigo and agribusiness partners. Indigo is the only company to have generated independently verified, registry-based agricultural soil carbon credits at scale. Our US project has been developed under the CAR Soil Enrichment Protocol v1.1. The first issuance occurred in June 2022, followed by a second issuance in February 2023, and a third issuance in February 2024.
Indigo also works with food, fiber, and fuel companies to engage growers within their sourcing regions to conserve resources and reduce on-farm emissions via sustainable agriculture practices, through an offering that we refer to as “Impact Programs”. In partnership with the buyers of sustainable agricultural commodities, we have several impact programs operating throughout the United States across a variety of crops, and we are continuing to grow and expand the number of programs we have to offer. Farmers and ranchers may participate in a program if we are operating a program within their region for the crop they are cultivating.
Carbon by Indigo: Indigo’s Carbon program is rooted in the concept that farmers can sequester carbon back into their soils and abate greenhouse gas emissions through regenerative farming practices and should be rewarded for doing so. Beyond the direct costs of transitioning to regenerative systems (e.g., new tillage/planting equipment, cover crop seeds and termination costs, etc.), farmers face significant social and cultural barriers that prevent large scale transition. Under this project, farmers must implement one or more new land management practice changes that reduce emissions and/or enhance soil organic carbon storage. Qualifying practice categories include cover crop planting and harvesting, tillage and crop residue management, and nitrogen application changes, and diversification of crop rotations. We also encourage farmers to stack these practices on fields over time, providing digital tools, agronomic educational resources, and performance feedback to empower them to optimize their farm business and maximize their environmental benefits. Transitioning to regenerative practices has been proven to reduce farm emissions, draw down carbon dioxide, and build carbon content in the soil. These practices also drive greater resilience to drought, water retention, and access to nutrients. In addition, the program brings new revenue into agricultural communities, building long-term financial sustainability. 75% of all carbon credit sales are paid to growers that implement eligible practice changes and generate credits, with the remaining 25% being split between Indigo and agribusiness partners. Indigo is the only company to have generated independently verified, registry-based agricultural soil carbon credits at scale. Our US project has been developed under the CAR Soil Enrichment Protocol v1.1. The first issuance occurred in June 2022, followed by a second issuance in February 2023, and a third issuance in February 2024.
Indigo also works with food, fiber, and fuel companies to engage growers within their sourcing regions to conserve resources and reduce on-farm emissions via sustainable agriculture practices, through an offering that we refer to as “Impact Programs”. In partnership with the buyers of sustainable agricultural commodities, we have several impact programs operating throughout the United States across a variety of crops, and we are continuing to grow and expand the number of programs we have to offer. Farmers and ranchers may participate in a program if we are operating a program within their region for the crop they are cultivating.
Elligibility
For Carbon by Indigo, we have attached our program eligibility guide, along with a summary of information below.
For a field to be eligible for Carbon by Indigo, it needs to satisfy the following criteria:
Located within the continental United States
Land type needs to be cropland* (i.e., not pastureland, orchard, etc.)
Adopt at least one qualifying additional practice change within the eligibility window
Only growing eligible crop(s) in the field’s crop rotation (both in historical baseline and into the future)
Not currently enrolled in another carbon crediting program
Has not been forward credited by another carbon crediting program
Has been in agricultural production for at least 10 years
Other program restrictions can be found within the “Other Notable Methodology Requirements” section
* Cropland is defined as land in production of row crops.
3.2: Eligible crop list
Alfalfa (perennial & annual)
Barley
Canola (Fall & Spring planted)
Corn
Cotton
Dry beans or peas
Flax
Hemp
Millet
Oats
Peanuts
Rye
Grain sorghum or milo
Soybeans
Sugar Beets
Sunflowers
Triticale
Wheat (Winter & Spring)
A field is eligible for Carbon by Indigo if, and only if, all crops in its historical rotation (3-5+ years pre-practice change) and current crop rotation are on this list. If a grower plants a cash crop that is not on this list in the future, it may disqualify the field from further credit generation and/or cause any unvested payments to be paused or forfeited.
3.3: Additionality
Additional practice changes (which demonstrate “additionality”) are newly adopted practices that increase soil organic carbon (SOC) and/or reduce greenhouse gas (GHG) emissions, which is the basis of a carbon credit. The purpose of additionality is to ensure that the environmental impacts that occur as a result of a grower’s participation in Carbon by Indigo are incremental to what would have happened without a carbon credit payment.
3.4 Summary of currently eligible practices
A field will meet the criteria for additionality when the grower adopts a new practice relative to what they had been doing in the baseline period – i.e., historically. Below is a summary list of current qualifying practices for Carbon by Indigo. Adopting one or more of these practices is not a guarantee a field will generate a certain amount of carbon credits – or a carbon credit in general – but is required for eligibility in Carbon by Indigo. Note that one or more of these practices must be adopted on at least 25% of a field’s area for it to be eligible.
High Credit Generation Practices
Cover Cropping Practices
First-time cover crop adoption on a field
Longer duration of a cover crop through delayed termination (> 7days compared to typical date)
Longer duration of a cover crop through earlier planting (e.g., interseeding) > 13 days compared to typical date
Add a legume species to an existing cover crop blend that does not currently have a legume in the blend
Tillage Practices (No Till)
Reduce the total # of tillage passes to zero
Reduce the tillage impact through changing tillage implements to No Till
Low Credit Generation Potential Practices
Crop rotation practices
Add a new qualifying cash crop to crop rotation (i.e., add wheat to corn-soybean rotation) without increasing the total annual fallow period
Nitrogen fertility practices
Reduce the number of nitrogen applications greater than 30 days before planting without increasing the total number of applications or increasing total nitrogen applied
Tillage practices (reduced till)
Delay tillage from directly post-harvest to closer to plant (i.e., >90 days change)
Reduce the total # of tillage passes (total number of tillage passes is more than zero)
Reduce the tillage impact through changing tillage implements
Practices that will generate credits but cannot be used to achieve additionality
Adding a qualifying nitrification inhibitor or controlled release fertilizer product to a synthetic fertilizer application without increasing total nitrogen
Practices that will not generate credits, but can be stacked with other credit-generating practices to achieve additionality in CAR common practice counties
Nitrogen fertility practices
Improved nitrogen fertility application method (i.e., banded vs. surface applied) without increasing total nitrogen
For Impact programs
Crop in cultivation within a given season and proximity to a given delivery location are the two primary drivers of eligibility for impact programs. Common crops we have run programs for are rice, cotton, corn, wheat, soybeans, oats, though we are looking at additional program types focused on sugarbeets, grazing, etc.
Program requirements differ by program type and are subject to change year over year.
Programs typically require farmers to adopt a variable number of sustainable practices during the production of a contracted crop. In many of our programs there will be various “tiers” so farmers can use less or more practices based on their familiarity and risk tolerance. For example – a beginner tier may pay farmers $15 per acre for using 3 sustainable practices (e.g., soil test, no-till, and crop rotation), or $25 per acre for using 5 sustainable practices (e.g., cover crop, soil test, no till, crop rotation, low fertilizer rate)
Some programs may require that farmers do not use synthetic fertilizer above a certain rate, or that they do not engage in certain practices such as residue burning. These specifications are clearly communicated to growers that are eligible for the opportunity.
If growers or ranchers enrolled within Carbon by Indigo satisfy the location requirements for programs in a given year, Indigo can bring impact program opportunities to growers via our platform.
Available Funding
Per the above note on eligibility, please see the list of eligible practices for Carbon by Indigo.
High Credit Generation Practices
Cover Cropping Practices
First-time cover crop adoption on a field
Longer duration of a cover crop through delayed termination (> 7days compared to typical date)
Longer duration of a cover crop through earlier planting (e.g., interseeding) > 13 days compared to typical date
Add a legume species to an existing cover crop blend that does not currently have a legume in the blend
Tillage Practices (No Till)
Reduce the total # of tillage passes to zero
Reduce the tillage impact through changing tillage implements to No Till
Low Credit Generation Potential Practices
Crop rotation practices
Add a new qualifying cash crop to crop rotation (i.e., add wheat to corn-soybean rotation) without increasing the total annual fallow period
Nitrogen fertility practices
Reduce the number of nitrogen applications greater than 30 days before planting without increasing the total number of applications or increasing total nitrogen applied
Tillage practices (reduced till)
Delay tillage from directly post-harvest to closer to plant (i.e., >90 days change)
Reduce the total # of tillage passes (total number of tillage passes is more than zero)
Reduce the tillage impact through changing tillage implements
Practices that will generate credits but cannot be used to achieve additionality
Adding a qualifying nitrification inhibitor or controlled release fertilizer product to a synthetic fertilizer application without increasing total nitrogen
Practices that will not generate credits, but can be stacked with other credit-generating practices to achieve additionality in CAR common practice counties
Nitrogen fertility practices
Improved nitrogen fertility application method (i.e., banded vs. surface applied) without increasing total nitrogen
As mentioned above, practices for impact programs vary based on the specific program goals and locations. Below you can find practices that are covered for various crops.
Practices that are typically covered for corn, and other similar row crops:
Length of Contracts
Carbon by Indigo: There is no max funding pool for Carbon by Indigo – farmers are paid for credits that they generate based on actual soil organic carbon sequestered. Farmers can estimate credit generation and payments using Indigo’s Carbon Calculator (linked here: https://app.indigoag.com/programs/how-much-can-i-earn-carbon-farming). Payments are issued to farmers when credits are issued via registries, typically in the winter following the prior year’s harvest.
Impact Programs: Funding available depends on the number of programs we are operating and the total size of each program. Payments are typically ~$15-35 per acre, but there are variable payment scales depending on program practice tiers.
Cost-share requirements?
Carbon by Indigo: Contracts have an initial term of 5 years, and it will automatically renew for 1 year terms thereafter. Contract terms can be found at www.indigoag.com/IndigoCarbonTerms. Farmers are paid for the number of verified carbon credits that may be issued or allocated a farmer and their enrolled land based on the volume of GHGs sequestered or avoided, net of any buffer account contribution or similar holdback mechanisms intended to protect against Reversals. Program payments are subject to vesting in five (5) installments over a period of five (5) calendar years, vesting annually for 50%, 20%, 10%, 10% and 10% of the total payment (in respective order), with the first payment to be made after verification and sale by Indigo of the applicable Carbon Credits, and annual payments thereafter.
Impact Programs: typically, growers will enter into a one-year contract that is tied to a certain volume of grain that they will deliver within a year. Farmers are paid a premium for the crop they deliver.
Required Documentation (prove ownership/lease arrangements)
There are opportunities for farmers enrolled in Indigo programs to stack incentives with other government incentive programs, such as EQIP, RCPP grants, etc. There are no cost share requirements.
Contact
For Carbon by Indigo, farmers are required to maintain and provide Indigo with records of all agricultural practices on a per field basis for the Land as well as other data, documentation and information as required or requested by Indigo to verify eligibility for, compliance with, and payment under, the Program (“Data”). Data includes “Land Management Records”: records and documentation of all material agricultural, agronomic, cultivation, harvesting and land operation or management practices for Land on a field basis (on a current and historical basis) and any other relevant documentation required to verify eligibility and compliance with the Program.
For Impact Programs, the following data & documentation is typically collected from growers and agribusiness partners supporting growers.
Note: additional documentation may be required, particularly for programs that are designed to help biofuel producers lower Carbon Intensity to qualify for federal tax credits (45Z).
Or:
Emery Sorvino