Bayer sets up carbon sequestration market for farmers

Bayer starts rewarding farmers in Brazil and the U.S. for generating carbon credits by adopting climate-smart practices – such as no-till farming and the use of cover crops – designed to help agriculture reduce its carbon footprint and greenhouse gas (GHG) emissions.

Bayer’s so-called Carbon Initiative aims to reduce field GHG emission by 30% in 2030.

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Together with #farmers, we are building a carbon-zero future for #agriculture. That’s why we’ve pledged to support and incentivize farmers to adopt climate-smart practices. See our full announcement: https://t.co/QcGFcg88sQ #BayerCarbonAction #climatechange pic.twitter.com/IvrzELT9Mt

— Bayer Crop Science (@Bayer4Crops) July 21, 2020

Assistance in implementing climate-smart agricultural practices

The program’s 2020/2021 season will include approximately 1,200 farmers in Brazil and the U.S. In both countries, farmers will receive assistance in implementing climate-smart agricultural practices and Bayer says it will acquire the carbon removals created by those practices at transparent prices. The company is also collaborating with partners such as Embrapa in Brazil to build a viable carbon market for farmers.

Carbon sequestration new business model for farmers

“Farmers are passionate environmentalists and stewards of the lands they farm,” said Brett Begemann, Chief Operating Officer of Bayer’s Crop Science division. Their lives and livelihoods depend on the weather, and they are some of the first to be affected by drought, flooding and extreme conditions. If anyone has a vested interest in battling climate change, it’s farmers and we are committed to developing new business models like this unique Carbon Initiative to help them in that fight.”

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Soil is one of the most effective ways of sequestering carbon. Incentivizing farmers to embrace no-till, precision nitrogen use or cover crops is to help further sequester carbon into the soil, reduce fossil fuel usage and reduce greenhouse gases. – Photo: Bayer

No-till, precision nitrogen use and cover crops

Bayer says soil is one of the most effective ways of sequestering carbon. Incentivizing farmers to embrace no-till, precision nitrogen use or cover crops is to help further sequester carbon into the soil, reduce fossil fuel usage and reduce greenhouse gases.

“While today farmers get rewarded solely for their food, feed and fiber production, those participating in the Bayer Carbon Initiative will have the opportunity to be rewarded for their best farm management practices and other sustainability efforts as well,” states the company.

Bayer to expand Carbon Initiative

Bayer plans to expand the program in the U.S. and Brazil to other farmers and then later into other world regions with tailored approaches that will allow growers to choose what climate-smart practices and implementation works best for them. In Europe, the company is exploring how this innovative approach could be adapted as part of the European Green Deal. In Asia-Pacific, the goal is to help increase productivity for smallholder farmers as well as reduce methane emissions from rice farming.