How much do the fields included in the carbon farming
program implemented by InSoil together with Linas Agro receive on average in
euros (before taxes) per ton of accumulated carbon?
Depending
on market conditions, the average price of one carbon credit (1 ton of
accumulated CO₂) in the program currently ranges
from 35 to 50 euros before taxes.
The income received by the farm depends on the applied
agricultural methods and soil properties. For example, according to the
program’s assessment, the average amount generated reaches 2 credits per
hectare, and the total income per hectare is 35–50 euros/ha.
More detailed information about the program’s indicators:
• Earnings per ton: The price starts at 35 euros per credit.
• Average accumulation: Lithuanian fields generate an
average of 1.5–2.4 t/ha of CO₂ equivalent per year.
• Practical return: Some farmers applying the most advanced
sustainable practices (e.g., no-till farming, catch crops) achieve an annual
rate of 2.2–2.4 t/ha and higher.
• Income per hectare: Due to this ratio, farmers generate an
income of 35–50 EUR per hectare of land.
You can review the conditions and exact forecasts for your
farm in Linas Agro Coal Credits for Farmers or in the official InSoil Coal
Farming Program.
“The first carbon credits created by Lithuanian farmers were
sold to US corporations. The carbon credit program began to bring tens of
thousands of dollars in income to farmers.
“We didn’t know if we would earn anything from carbon
credits, but we have always been for innovations, so we tried,” says Sonata
Vasiliauskienė, a farmer in Samogitia. “For the past few years, we have all
been maneuvering on very low profitability in agriculture, we all see that
intensive agriculture is not leading anywhere, so we have to change and take
advantage of new opportunities.”
In 2020, Sonata Vasiliauskienė was one of the first farmers
in Lithuania to get involved in carbon farming. Her fields included in the
carbon farming program run by InSoil together with Linas Agro have accumulated
an average of 2.4 tons per hectare during this period (receiving at least 84
euros per hectare). The farmer recently received her first income, which helps
her prepare for the upcoming harvest.
From Utopia to US giants
Some of the carbon credits of farmers participating in the
InSoil and Linas Agro programs were purchased by the US biotechnology giant
Thermo Fisher Scientific, climate solutions companies Anew Climate and Key
Carbon, and the Baltic private equity fund Livonia Partners.
Laimonas Noreika, CEO and co-founder of InSoil, says that
when the carbon farming program was launched in 2020, many farmers did not even
want to hear about “money from thin air”. However, now sustainable farming is
being applied much more widely in Lithuania, even small farm owners are already
applying for opportunities to certify the organic carbon accumulated in their
fields.
“Sustainable farming today is not only an environmental
solution, but also a real financial benefit. By applying soil carbon
accumulation practices, farmers generate carbon credits, which InSoil sells on
the market.
The income from these credits increases the profitability of
the farm by up to 25 percent, therefore they become a significant economic
incentive to choose more sustainable farming methods.
This is beneficial for both the farmer and the climate,”
says Laimonas Noreika, CEO and co-founder of InSoil.
He notes that in order to continue maintaining high results,
a limit on the amount of land to be included is applied this year. Only 50,000
hectares of arable land will be accepted into the carbon farming program, and
those who signed carbon farming contracts the earliest will be accepted.
A real change
“The first returns received by farmers from carbon credits
show that this program can create clear economic value for farms. For
Lithuanian farmers, this becomes an additional source of income in addition to
the sale of the harvest, helping to strengthen the profitability of the farm.
Our goal is for as many farmers as possible to take advantage of such
opportunities, and for carbon farming to become a practical, financially sound
solution,” says Jonas Bakšys, CEO of AB Linas Agro. Linas Agro is the representative
of the InSoil carbon dioxide credit program in Lithuania.
In addition, he emphasizes, joining the carbon dioxide
program does not cost the farmer anything.
One of the best results in Lithuania was shown by Medeikių
ŽŪB. The company's manager, Darius Landauskas, says that during the six years
of participation in the program, the farm has implemented several new
practices.
"We have further reduced tillage, included plants
recommended by InSoil according to soil type in the catch crop mixture, and
recently switched to more precise fertilization, thus reducing fertilizer
costs," says Darius Landauskas, whose managed arable fields have
accumulated an average of almost 2.2 tons of carbon dioxide per hectare per
year (receiving at least 77 euros per hectare).
The carbon farming program helps farmers switch to more
sustainable agricultural practices - reducing tillage, better adapting catch
crops, using organic fertilizers and manage residues. Such measures lead to
faster carbon accumulation in the soil and lower greenhouse gas emissions
compared to traditional farming methods. In addition, due to lower costs and
improving soil quality over time, more sustainable farming increases farm
profitability.
InSoil and Linas agro operate the largest carbon farming
program in Lithuania, which has already included over 140,000 ha.
Almost 1 million hectares of arable land are participating
in the InSoil carbon farming program across Europe. The company has also
provided more than 100 million euros in loans to help farmers transition to
more sustainable agriculture and is the only specialized financier of
regenerative agriculture in Europe.
The report was prepared by Linas Agro. The author of the
report is responsible for the accuracy and legality of the information
provided.”
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