Questions to ask before jumping into the carbon market


Corn was $3.20 per bushel when Kyle Mehmen signed his first carbon contract 18 months ago. Today, corn prices are above breakeven, which buoys his spirits.

Even so, Mehmen, general manager of MBS Family Farms, based in northeast Iowa, is still bullish on carbon and has crop acres enrolled in four different programs.

“Carbon markets pay for practices I already believe in and use — no-till and cover crops,” he explains. “They’re a risk management tool that provide an additional income stream.”

But Mehmen is practically an anomaly. Only 1% of farmers nationally have signed a carbon contract, though 30% to 40% are aware of the opportunities, according to a recent Purdue University Ag Economy Barometer survey. Read the rest of the article here.