Carbone Farmers: creating new low-carbon agricultural sectors

Agriculture, a sector in transformation

Agriculture emits carbon, but it can also store it 

While agriculture is responsible for 25% of the world's GHG emissions, it is also part of the solution, thanks to its dual capacity to significantly reduce emissions and store carbon in the soil.

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This is made possible by the implementation of agro-ecological practices, which follow the principles ofregenerative agriculture, such as : 

• intercropping plant cover,
• partial substitution of mineral fertilizers by organic fertilizers,
• returning crop residues to the soil

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In addition to their carbon impact, these practices also offer numerous benefits for both farmers and nature: 

• they make soils more fertile, 
• they facilitate water retention, 
• they increase resistance to erosion, 
• they are less dependent on inputs, 
• they enhance biodiversity, ...

Carbon farming is a promising niche for carbon offsetting

The carbon offset market is divided into two parts:

• the regulated market (= carbon quotas) on the one hand,
• the voluntary market.

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The latter reached €2 billion in 2021, and growth forecasts to 2035* are x120(including x30 in loan volume and x4 in value per loan, according to Ernst & Young).

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Visit Carbon Farming belongs to the "nature-based solutions" segment of the voluntary carbon offsetting market, which also includes reforestation, currently in the majority. 

Carbon Farming offers a number of advantages that should boost its growth in the years to come. 

What's more, the decision to give priority to agricultural projects over forestry projects now seems essential. 

Forest area has already increased significantly in recent decades, mainly as a result of agricultural abandonment. 

It is becoming essential to preserve agricultural land, particularly from the point of view of food resilience.

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Today, there are 400,000 farms in France, covering a Utilized Agricultural Area (UAA) of almost 30 million hectares. 

The carbon reduction and sequestration potential is around 1 carbon credit / Ha / year, or 30 million carbon credits per year (the current annual emissions of 3.5 million French people).

With a carbon credit currently valued at €45, the potential market in France is therefore €675 million a year in financing for farm transition, a figure that is expected to grow sharply between now and 2027, driven by the increase in value of carbon credits sold on the offset market (see here Ernst & Young May 2022 detailed study).

With a UAA of 170 million hectares, mainly in the major agricultural countries of Spain, Germany, Italy, Poland, Romania and the UK, the prospects for new growth in Europe are very good.

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Carbone Farmers maximizes the value of the entire value chain

The model is designed to benefit all stakeholders

The company offers the most comprehensive model on the market, maximizing value for all stakeholders in the value chain. 

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The farmer 

It benefits from : 

• recommendations on best practices, 
• better financing via Crédit Carbone (75% of the value of the carbon credit, compared with 65% with other market players) 
• a precise analysis of the cost of the transition to provide evidence to transition funders

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The cooperative

It features : 

• a solution compatible with all types of crop / operation,
• a fee of €200/year/farm, plus 1.5% on the sale of carbon credits. 
• support for cooperative technical sales staff in their projects and in aligning specifications with a multi-sector approach.

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Food manufacturers and financiers  

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They have access to :

• improved traceability via a single SaaS platform for tracking emissions reductions 
• unrivalled transparency, thanks to data from all the tools we use

More than 300 farmers and a major French group already won over

Carbone Farmers has already convinced 4 cooperatives and several major groups involved in the agri-food value chain.

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In all, over 300 farmers have signed up to the solution. They are mainly in field crops, in the upstream implementation phase (assessment of carbon potential) and then, by the end of 2022, in the project phase with the start of commercialization of the carbon credits generated. 

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On the carbon credit buyer side, Carbone Farmers has won a competitive tender open to all players developing carbon offset projects in France from one of France's largest carbon credit buyers, with nearly 2.5 million TCO2e. This is an exclusive 3-year partnership. 

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In any case, feedback from farmers and companies has been extremely positive:

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"For many years now, I've been paying particular attention to the health of my soils, and they've paid me back in spades. So when you talked to me about financing associated with the practices I wanted to put in place, I naturally listened carefully. I chose Carbone Farmers because, in addition to the fact that you have a good understanding of farmers' issues and are available to help, you are transparent in your approach. I know that I'll receive 75% of the financing, with a payment from the start of the first year".

Bertrand Ravillon, farmer in Marne (51)

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"Our group, which has been involved in territory and carbon offset projects in France since 2015, wanted to work with Carbone Farmers since spring 2022 to benefit from their expertise in supporting innovative agricultural projects that structure territories and have strong social and societal co-benefits."

Elodie R., CSR Manager

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This excellent feedback from the field, coupled with strong differentiation factors, leads us to believe that Carbone Farmers will be one of the market's big winners. All the more so, if we take impact perspectives into account. 

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Proven positive impact 

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Carbone Farmers provides a solution to the urgent problem of climate change by acting on 2 levels:

• Reducing emissions from the agricultural sector, which accounts for 25% of GHG emissions
• Agricultural resilience in the context of climate change and the quest for food sovereignty

A lasting impact without the risk of greenwashing

This is made possible by an approach that is certified and traceable at various levels:

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• the emission of carbon credits is certified by Bureau Veritas. The audit methodology covers all operations, with an annual pre-certification that goes beyond the regulatory framework(which provides for an audit after 5 years only).
  
• backers have access to detailed annual reporting on carbon trajectories achieved in relation to initial targets
  
• the company integrates monitoring of indicators that are not carbon-based, but which are essential to secure impact: biodiversity, soil, water, etc.
  

Controlled costs and better value distribution  

Carbone Farmers enables the food industry to decarbonize its supply at a controlled cost.

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The model distributes transition funding between :

• carbon credits, which are sold outside the value chain to companies wishing to contribute to the transition.
  
• chain premiums, distributed equitably between the farmer's various outlets, in return for an effective reduction in carbon emissions.

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What are "filière" bonuses?

Channel premiums are a "premium" paid by manufacturers to their suppliers, in return for compliance with specific specifications. 

Examples: organic, no pesticide residues, GMO-free, maintenance of an area of ecological interest etc... 

In the case of carbon, this is a premium calculated on the basis of the actual reduction in the carbon footprint of supplies, which we calculate for each commodity (wheat, barley, corn, rapeseed, etc.). 

By way of illustration, the carbon footprint of a yogurt can be reduced by almost 30% by implementing agro-ecological practices.

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Carbone Farmers offers a fair distribution of the value created by carbon farming:

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• Farmers benefit from 75% of the sale value of carbon credits, the highest remuneration percentage on the market, and they increase their income with chain premiums.

• cooperatives are compensated for farm monitoring, and strengthen their ties with farmers through secure low-carbon supply contracts

• the food industry reduces its carbon footprint at controlled cost

• buyers of carbon credits invest in high-impact projects with strong traceability.

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In 2027, in France alone, the company could enable 800,000 hectares of cultivation to be switched over to regenerative, low-carbon practices, equivalent to the size of a French department like Marne, representing almost 4 million Carbon Credits, or the annual Carbon impact of 400,000 French people, the equivalent of a city like Toulouse.

This is equivalent to the sale of almost 1,300,000 carbon credits, representing cumulative direct financing for farmers of over €40 million.

For all these reasons, we are very proud to enable Carbone Farmers to accelerate the deployment of its solution through targeted recruitment and increased visibility with cooperatives and carbon credit buyers. 

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