The U.S Department of Agriculture (USDA) has released a report on the role of agriculture and forestry in the U.S. carbon markets, highlighting current market activity, barriers to participation, and opportunities for improving access. Farmers, ranchers, and forest landowners who implement techniques to cut emissions or trap carbon on their land can earn carbon credits in the carbon market, making it a potentially useful tool for achieving net-zero emissions. However, the paper notes a number of obstacles, such as low returns on investment because of high transaction costs in carbon markets, that have prevented agriculture from fully participating in these markets.
"The Biden-Harris Administration is working aggressively to ensure farmers, ranchers, forest landowners, and tribal communities have opportunities to be part of the solution to climate change, all while cultivating new revenue streams and fostering investment in rural communities," said Tom Vilsack, Agriculture Secretary. "This landmark report demonstrates both the potential and the challenges that carbon markets present for agriculture and forestry."
To ensure the climate benefits stated in transactions are genuine and supported by sound evidence, the USDA is working to increase confidence and landowner involvement in carbon markets. To better measure, monitor, record, and verify greenhouse gas emissions and carbon sequestration in climate-smart agriculture and forestry, the USDA has announced $300 million through President Biden's Investing in America plan. In order to better assist producers interested in carbon markets and to establish a process to register market verifiers, the next step in implementing the GCSA is to decide whether to establish the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program.
The work of the Biden-Harris Administration to assist farmers in adapting to climate change, increasing the resilience of their operations, and capitalizing on the growing demand for climate-smart agricultural goods is bolstered by this report. Nearly $20 billion over five years was made available for some of USDA's most popular conservation programs thanks to the Inflation Reduction Act, which was signed into law on December 29, 2022.
