Carbon Markets for Farmers and Ranchers in New Mexico

Under the right conditions, plants pull carbon dioxide out of the air and store it in the ground.

Carbon credit markets give farmers a chance to earn extra income by using sustainable agricultural practices that pull carbon dioxide out of the air and store it in the ground. This can help fight extreme weather effects while also supporting more sustainable farming. 

Sawssan Boufous of the New Mexico State University Department of Extension Economics recently partnered with the Department of Innovative Media Research and Extension to create an animated video about carbon credit markets and how agricultural producers can participate in them. 

Carbon credit markets may be government-run or privately run. Government markets may be tied to emissions rules, while voluntary markets may serve companies or individuals who want to shrink their carbon footprint voluntarily.  By participating in a program, producers become a pivotal part of the carbon credit market, since they initiate the creation of carbon credits through the use of one or more program-specific agricultural practices. Engaging in this market not only offers additional income but also contributes to land preservation and environmental stewardship.

The animated video “Carbon Markets for Farmers and Ranchers in New Mexico” explains the ins and outs of agricultural carbon credit markets in a simple and clear language. Visuals are playful yet informative. For educational outreach, it’s suitable for audiences of farmers, ranchers, students, or the general public.

By watching the animated video, viewers will likely increase their understanding of what carbon credit markets are and how they work. Farmers and ranchers may see a way forward to use carbon markets as an additional income opportunity while preserving their land and its traditional uses. 

To quality for carbon credits, land must be suitable for adopting conservation practices, have been used for agriculture for at least five years, and not already be enrolled in another program,

Carbon programs in the US. have different requirements, but generally speaking, farmers or ranchers must have a field that isn’t already enrolled in another carbon program; it must be suitable for adopting conservation practices; and it needs to have been used for agricultural production for at least five years.

Once the program-specific conservation practices are put in place, the carbon credit company or third-party company steps in to measure how much carbon is being stored in the soil. They collect data, make sure everything checks out, and may handle the paperwork to get the carbon credits certified and ready to be marketed.

A carbon credit company will measure carbon, collect data, and potentially handle paperwork

Depending on the program, practices may include no-till, reduced tillage, cover crops, crop rotation, buffer strips, fertilizing pasture, pasture grazing, manure application, leaving crop residue, growing leguminous crops, and/or nitrogen management. These practices are proven to benefit farms and ranches in several ways beyond generation of carbon credits, for example, by building healthier soil, improving water quality, reducing erosion, and helping land hold up better during floods and droughts.

For more information on programs available to you, please contact your local Cooperative Extension office.

Written by Sawssan Boufous, PhD, NMSU Department of Extension Economics (sawssanb@nmsu.edu) and Amy Smith Muise, NMSU Department of Innovative Media Research and Extension