Truterra Launches Carbon Program, First Payments In Summer 2021
Carbon Credit Program 020821
This summer, farmers will start receiving the first tranche of payments via TruCarbon, the new carbon program launched by Truterra, LLC.
TruCarbon will help farmers generate and sell carbon credits to private sector buyers, and Microsoft is the first secured buyer.
“We are on a fast pace,” says Jason Weller, Vice President, Truterra. “We have a customer and a huge opportunity to do the initial sale, and it will be one of the largest soil carbon credit sales in the U.S.”
Weller explains through February the company is connecting with farmers with their retail partners for data collection in March and April. Then, soil testing and data verification will occur in May. The transactions start in June.
“Two things make our program launch unique,” Weller explains. “First, we have a buyer already lined up. And, this is a look back program for carbon farmers have already sequestered—up to five years ago. We aren’t assigning future carbon credits to anyone.”
TruCarbon is being powered by Truterra, LLC, which currently has 24 retail partners within the larger WinField United network.
TruCarbon is poised to be transformative for the retail industry, says Brett Bruggeman, President of WinField United.
“This program fits with WinField United and with Truterra–it’s scientific; it’s not just hype,” Bruggeman says. “It’s about putting our locally operated owner in a position with their grower of tomorrow. We’ve done that in the past with fungicide and foliar feed programs, and this is a different example. Thirty years ago, a scalable asset for WinField United were warehouses, and now scalable assets are putting together these markets. We are moving and evolving our models to move along with agriculture. We think this market is unlimited.”
Bruggeman says this new program is a “shot in the arm” to demonstrate the carbon market opportunity, and capability and value of the technology tools that are available.
Weller adds how this new opportunity is a launchpad for future growth while being complementary to the existing retail business.
“What’s unique about our approach is that it’s in the system of agronomic production, so it’s a complement of the agronomic recommendations, application and service retailers offer. It’s not a bolt-on, and that’s key for success with carbon credits,” Weller says.
He details that every account is unique with their soil types, production practices, and other factors. However, the company is saying participating farmers will receive $20 per ton of carbon.
“What’s most exciting is the future this opens up for farmers. I think that we could be making cropping plans in the future considering carbon in the rotation, so you are double cropping soybeans with your carbon,” Weller says.
