Payment FAQ

Understand how you will get paid in the Carbon Program

Becky Scott avatar
Written by Becky Scott
Updated over a week 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 since the program's inception. 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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