1. What is the price per carbon credit? What might a farmer expect to earn per acre?
Indigo’s carbon credit pricing reflects market demand and has risen rapidly since Carbon by Indigo was launched. We have secured recent purchase commitments of $60-$80, depending on the time of delivery - and independent third-party projections expect carbon credit prices to continue their upwards
trajectory. One credit represents one metric ton of carbon sequestered or abated.
Growers receive 75% of the weighted average carbon credit sale price paid by buyers for a given carbon crop, so they share in any upside as prices rise. Growers who start carbon farming now will be able to build up their credit generation potential and reap the most benefit.
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