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Payment FAQ

Understand how you will get paid in the Carbon Program

Becky Scott avatar
Written by Becky Scott
Updated over 10 months ago

1. What is the price per carbon credit? What might a farmer expect to earn per acre?

Carbon by Indigo committed to pay growers $30 per credit for the 2020 and 2021 Carbon Crops, a 100% increase from the program's inception. Since then, Indigo has sold Carbon credits in the $60-80 range, and we expect that price to continue to climb. Growers receive 75% of the average selling price of the credit generated in a carbon crop year.

2. Is a farmer only eligible to receive payment for whole carbon credits (e.g. 2 or 3 credits vs. 2.5 credits)?

Farmers are paid for performance and may earn fractional credits for the sequestration or avoidance of part of a metric ton of carbon dioxide equivalent.

3. How recently can I have made a practice change and still be eligible for payment?

You can have made an Indigo-approved practice change, such as reducing tillage or planting cover crops, in the cultivation year prior to signing a Carbon by Indigo contract.

4. Is there a vesting schedule? What are the breakdowns of payments?

Payments are subject to a five-year vesting schedule with payments for credits generated in a given period as follows:

  • 50% paid to a farmer within thirty days after a carbon credit is issued to Indigo and sold to a third-party buyer.

  • 20% will be paid in year two, followed by 10% each year for years three through five.

5. When can I expect my first payment?

To generate verified credits, we will need a full season’s information (including harvest) to begin quantifying the carbon sequestered and greenhouse gases avoided during the entire previous growing season. For growers enrolling now with qualifying practice-changing fields, you will need to final file your fields by the final filing deadline to receive your "Year 1" payment following credit issuance.

Payment year examples:

  • 2022 Carbon Crop: File your fields by the 2023 filing deadline and receive payment in early 2024

  • 2023 Carbon Crop: File your fields by the 2024 filing deadline and receive payment in early 2025

  • 2024 Carbon Crop: File your fields by the 2025 filing deadline and receive payment in early 2026

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