U.S. Farmers Receive $1.2 Million from Anew Agri Carbon for Carbon Sequestration Commitments in the CarbonNOW Program
Payments were made to farmers in Locus Agricultural Solutions’ CarbonNOW® carbon farming program, through funding from Anew Climate, LLC (“Anew™”, previously Bluesource) and Green Star Royalties. Compensation was received within 8 months of enrollment—making them the fastest carbon payments made through any carbon farming program
HOUSTON, TX (August 9, 2022) U.S. farmers are celebrating a monumental carbon farming milestone—rapid receipt of over $1.2 million in carbon payments. The payments were made upfront on a per-acre basis by Anew to over 40 growers through CarbonNOW®, a globally recognized carbon farming program from Locus Agricultural Solutions® (Locus AG). Anew Agri-carbon helped design, build, finance, and manage the CarbonNOW program on behalf of Locus AG with carbon finance provided by Green Star Royalties. Farmers received the initial compensation within 8 months of joining CarbonNOW—making it the fastest prepayment from any agricultural program focused on carbon sequestration practices. The program incentivizes a broad suite of regenerative agriculture practices that maximize soil health and its ability to sequester carbon by offering both annual upfront payments to growers who purchase and apply Locus AG’s soil probiotics and performance payments tied to the carbon credit value generated by each grower.
The microbial amendments, or soil probiotics, that anchor the CarbonNOW carbon farming program increase carbon sequestration, enhance nutrient uptake, and boost crop productivity for accelerated profitability. Locus AG helps farmers who participate in the carbon program track these co-benefits through free-of-charge, on-farm soil testing and third-party validations.
Efficient upfront payments are crucial for farmers who must make a practice change amid rising gas, fertilizer, and seed prices, along with equipment and material shortages. The CarbonNOW payments made by Anew also pave the way for broader farmer participation in carbon farming.
“Anew has been developing and monetizing carbon credits in North America for over 20 years and has a track record of delivering sustained value to our clients and partners. Anew’s Agri-carbon solutions for partners such as Locus AG are designed to create and sustain value by maximizing incentives and returns to the growers such that as many as possible join the program, adopt regenerative practices, and stay in it for the long term,” stated Jamie MacKinnon, Anew Agri-carbon senior vice president. “Growers enrolling in the CarbonNOW program are telling us they find the hands-on support, upfront per-acre payments, and upside potential from performance payments to be compelling incentives.”
“It’s important for farmers to see financial compensation early on for the time dedicated to a carbon farming program, plus co-benefits to help ensure a successful growing season,” said Travis Kraft, Locus AG’s director of row crops and CarbonNOW carbon farming expert. “With CarbonNOW, farmers don’t have to wait years for payment. They get guaranteed money upfront with no program fees, plus the chance for bonuses.”
“The CarbonNOW team and its carbon partners held up their end of the deal and came through on their promises” said CarbonNOW farmer Scott Scheimer, owner of Scheimer Farms. “When you’re in a tight-margin industry like agriculture, it’s important to establish relationships with people that are experts in these fields and be able to trust their input.”
CarbonNOW Carbon Farming Program Provides Guaranteed Carbon Payments
The CarbonNOW carbon farming program was developed to overcome financial hesitations that hinder farmer participation in carbon markets. It is the first carbon program to offer guaranteed annual minimums with upfront cash payments, accruing performance bonuses and no program fees.
“The upfront CarbonNOW payments helped me cover the increasing operational expenses we’re facing—fuel, fertilizer and product costs,” said CarbonNOW farmer Todd Olander, owner of Olander Farms and Root Shoot Malting. “With Locus AG’s carbon farming program, we can add more value than just growing commodity crops, and help sustain our farming long-term.”
Farmers Use Qualifying Soil Probiotics for Additional Financial Benefits
Many of the farmers that were part of the $1.2 million carbon payments were able to join CarbonNOW despite not qualifying for other carbon farming programs. CarbonNOW requires a low/no tillage regime and is designed to incentivize the adoption of other regenerative practices, such as cover cropping and reduced fuel use. Farmers that adopted some of these practices in the past and who, as a result, might not be eligible under other programs, are eligible in CarbonNOW due to the use of Locus AG’s soil probiotics. The soil solutions meet required practice change criteria.
CarbonNOW Strategic Partnerships Ensure Program Security through Trusted Carbon Market Expertise
The carbon farming payments are made possible through a partnership between Locus AG and Anew. As one of the largest and longest standing carbon project developers, Anew has a unique track record and capacity to develop premium carbon credits and market them to corporate buyers looking to align their net-zero or carbon neutral initiatives with agricultural co-benefits. Anew makes the payments to growers in the CarbonNOW program and has partnered with Green Star Royalties Ltd, a pure-green subsidiary of Star Royalties Ltd, to finance the upfront payments.
Anew Agri-carbon has already secured purchase commitments for the carbon credits associated with the $1.2 million payments.
The CarbonNOW carbon farming program was recently expanded to 1.32 million U.S. agriculture acres. Growing interest from farmers and carbon credit buyers is leading to additional plans for further reach. For more information on how to participate, visit LocusAG.com/CarbonNOW. Interested buyers may connect with sales@anewclimate.com to learn more.
