The rapidly evolving carbon credit market is a potential revenue channel for farmers in which they can also contribute to the solution for climate change alongside feeding the world’s growing population.
“Carbon sequestration’s revenue potential for farmers through carbon credits incentivizes adoption, investment, and innovation for the betterment of our climate,” said Louisa Parker-Smith, AGCO’s Global Sustainability Director. “With half of the earth’s vegetated land employed in agriculture and abundant soil carbon sequestration potential, it’s understandable that the Ag supply potential is over 30 times today’s total credit demand. However, we expect to see carbon-offset credit demand increase exponentially as surrounding markets mature and companies such as Apple and BP work towards self-imposed climate neutrality deadlines.”
“We are undertaking this research to help create a clear path for farmers to successfully harness the revenue potential and climate benefits of biologic carbon sequestration through cover cropping and other regenerative agriculture practices,” said Darren Goebel, AGCO’s Global Agronomy and Farm Solutions Director. “We are confident that these trials will demonstrate easy and cost-effective ways to add these practices into existing crop systems.”
AGCO’s Global Agronomy team is collaborating with the company’s global brands to drive research trials at the Martin Richenhagen Future Farm in Zambia, Africa, and the Swiss Future Farm in Tänikon, Switzerland, as well as several sites in the U.S. and Denmark. The studies focus on best practices for cover crop planting timing (before, during or after harvest), termination methods, species selection and tillage systems to maximize carbon stores.
Watch this video of AGCO Agronomist Jens Christian Jensen’s visit with Steffen Decker, a fourth-generation farmer at Stydinggaard near Styding, Denmark, to learn about his experience with cover cropping over the last 10 years:
The research trials are one component of AGCO’s new sustainability strategy, which includes a focus area on farm solutions for soil health and carbon capture.
“Our goal is to make regenerative agriculture attainable for farmers,” said Parker-Smith. “As part of our new strategy, we’re conducting these research trials to inform the development of new products to support soil health and carbon management. We’re committed to supporting farmers as part of the solution to the global challenge of climate change.”
About AGCO
AGCO (NYSE:AGCO) is a global leader in the design, manufacture and distribution of agricultural solutions and delivers high-tech solutions for farmers feeding the world through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® smart farming solutions. Founded in 1990 and headquartered in Duluth, Georgia, USA, AGCO had net sales of $9 billion in 2019. For more information, visit www.AGCOcorp.com. For company news, information and events, please follow us on Twitter: @AGCOCorp. For financial news on Twitter, please follow the hashtag #AGCOIR.
