Agreena has announced the results of its second harvest year (HY) and second annual early payout to European farmers.
Farmer participation grew four-fold for HY 2022 while increased farmland enrolment by existing members accounted for 20% of Agreena’s overall portfolio growth. The number of hectares enrolled grew 10-fold.
Agreena’s soil carbon platform is the largest in Europe and operates in 16 countries, helping farmers finance regenerative practices. The agtech company is paying the largest incentives to farmers under a soil carbon scheme to-date at €32-€36 per anticipated carbon certificate generated, depending on region. This is an increase of up to 45% from last year.
While carbon sequestration in agriculture has been identified as one of the top solutions to tackle climate action because of its accessibility and the immediate impact it can have, the largest barrier is the high upfront costs for farmers. By leveraging the voluntary carbon market (VCM) to convert climate-friendly farming efforts into high-quality carbon certificates, Agreena is driving a new revenue stream to the farmer.
Simon Haldrup, CEO, said: “Agreena is introducing a new category of carbon certificates into the market and it will take time to build and scale, but farmers cannot wait – they need a reliable and liquid payment to help cover their transition efforts. That is why Agreena takes a calculated risk and pays farmers each harvest year. Still, carbon certificates are just one part of the solution and a mix of incentives is needed to rapidly transition the world’s farmers to regenerative practices.”
Farmers and the companies that rely on carbon certificates for their ESG and sustainability efforts are on different timelines. Sales of credits can take a year or longer to occur after the impact has been certified. Agreena’s early payout option for farmers bridges the gap between the two. Farmers enrolled in Agreena’s program decide how they’d like to use the certificates that they generate, and one of those options is to be paid soon after the harvest year ends to help cover their upfront costs. The early payout is based on market prices at the time. Growth of the Voluntary Carbon Market and pricing for high-quality carbon certificates continue to grow, any upside when Agreena’s certificates are sold is shared with the farmer.
The deadline for enrolling in Agreena’s 2023 programme is quickly approaching. Farmers have until June 30 to enter this year’s harvest, and can calculate their earning potential and apply by completing this form on Agreena’s website. More information about the programme and how it works can be found here.
Agreena anticipates that as the VCM continues to grow and evolve, the market will see continued developments related to certification and new standards in the space. Agreena’s portfolio of GHG reduction and carbon removal certificates are accredited to the ISO 14064-2 standard and are currently undergoing Verra VCS certification. The outcome is anticipated before the end of the year.
