Agriculture Carbon Sequestration Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Raw Material (Natural-Based Solution, Technology-Based Solution), By Application (Crop Farming, Livestock Farming, Forestry, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 155.27 Million
CAGR (2026-2031)	8.71%
Fastest Growing Segment	Natural-Based Solution
Largest Market	North America
Market Size (2031)	USD 256.27 Million

Market Overview

The Global Agriculture Carbon Sequestration Market will grow from USD 155.27 Million in 2025 to USD 256.27 Million by 2031 at a 8.71% CAGR. The Global Agriculture Carbon Sequestration Market encompasses the deployment of agronomic practices and technological solutions, such as cover cropping, no-till farming, and agroforestry, aimed at capturing atmospheric carbon dioxide and securely storing it within agricultural soils and biomass. The primary drivers supporting the market's growth include increasingly stringent government regulations targeting net-zero emissions, escalating corporate commitments to Environmental, Social, and Governance (ESG) mandates, and the growing financial incentivization of carbon credit generation for primary producers. These structural motivators are fostering a robust environment for the transition toward regenerative farming systems, independent of transient technological trends.

One significant challenge impeding rapid market expansion is the technical complexity and high cost associated with Measurement, Reporting, and Verification (MRV), which creates uncertainty regarding the permanence and accuracy of stored carbon. Reliable data is essential to validate these efforts and ensure investor confidence. According to the Food and Agriculture Organization (FAO), in 2024, global greenhouse gas emissions from agrifood systems were reported to have increased by 10% since 2000, underscoring the critical and immediate necessity for scalable carbon sequestration strategies to reverse this trajectory.

Key Market Drivers

The implementation of supportive government policies and financial incentives acts as a foundational catalyst for the market, mitigating the economic risks associated with transitioning to carbon-sequestering practices. By subsidizing the initial costs of cover cropping, reduced tillage, or precision agriculture, public funding bridges the gap between adoption and profitability for primary producers. This structural support is essential for scaling climate-smart operations that might otherwise be cost-prohibitive for individual farmers. For instance, according to the United States Department of Agriculture, October 2024, in the 'USDA Announces $1.5 Billion in Regional Conservation Partnership Program Awards' press release, the agency awarded $1.5 billion to 92 partner-driven projects specifically targeting conservation and climate solutions. Such substantial capital injections not only validate carbon farming methodologies but also encourage widespread participation by providing the necessary liquidity for large-scale operational shifts.

Simultaneously, escalating corporate sustainability commitments are creating a lucrative demand-side pull, as multinational organizations seek high-quality offsets to meet strict net-zero obligations. This trend is directly monetizing soil carbon, transforming agronomic improvements into tradable assets within the voluntary carbon market and incentivizing verifiable sequestration. According to Indigo Ag, June 2024, in the 'Indigo Ag's Carbon Program to deliver record carbon credits to Microsoft' press release, Microsoft agreed to purchase 40,000 agricultural soil-based carbon credits, marking the largest single delivery to an individual buyer in the company's history. While private sector engagement accelerates market liquidity, broader international financing is also expanding to support this systemic transition. According to the World Bank, in 2024, the institution pledged a record $42.6 billion in climate finance to bolster global resilience and sustainable development, further reinforcing the economic infrastructure necessary for low-carbon agriculture.

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Key Market Challenges

The technical complexity and high cost associated with Measurement, Reporting, and Verification (MRV) represent a formidable barrier to the expansion of the Global Agriculture Carbon Sequestration Market. These rigorous protocols require precise, ongoing monitoring of soil organic carbon levels, which imposes prohibitive financial expenses on farmers and project developers. Consequently, the high transaction costs often outweigh the potential revenue from carbon credits, particularly for smaller agricultural operations, thereby limiting the supply of verified high-quality credits and stifling broad market participation.

This challenge has created significant volatility and hesitancy among institutional buyers who demand absolute assurance regarding the permanence of stored carbon. The impact of these verification hurdles and the resulting "flight to quality" is evident in recent market performance data. According to Ecosystem Marketplace, in 2024, the total transaction volume of the voluntary carbon market declined by 25 percent, a contraction driven largely by intensified buyer scrutiny over credit integrity and verification methodologies. This data underscores how the absence of streamlined, cost-effective MRV mechanisms directly restricts market liquidity and hampers the scalable adoption of agricultural carbon solutions.

Key Market Trends

The market is pivoting from external offsets to "supply chain insetting," where corporations invest directly in their supply chains to mitigate Scope 3 emissions. This strategy embeds sequestration practices into supplier production systems, ensuring carbon improvements are permanently linked to the corporate value chain. This shift enhances ESG credibility and secures long-term commodity resilience, driving major conglomerates to aggressively scale these internal programs. According to PepsiCo, August 2025, in the '2024 ESG Summary', the company reported that it had deployed regenerative agriculture practices across 3.5 million acres of its global supply chain, illustrating the significant scale of these corporate-backed initiatives.

Simultaneously, AI-driven remote sensing is revolutionizing Measurement, Reporting, and Verification (MRV) by dismantling the financial barriers of physical soil sampling. Satellite imagery combined with machine learning now enables continuous, non-intrusive monitoring of soil organic carbon, providing the high-frequency data necessary to generate verifiable, high-integrity credits. This technological advancement is successfully attracting major institutional buyers who previously viewed agricultural credits as unverifiable. According to Boomitra, September 2025, in the 'Nine years strong: driving climate action across continents' press release, the Government of Singapore agreed to purchase 625,000 soil carbon credits verified exclusively through the company’s satellite and AI-based monitoring platform, signaling a definitive move toward digitally verified carbon assets.

Segmental Insights

The Natural-Based Solution segment is currently identified as the fastest-growing category within the Global Agriculture Carbon Sequestration Market due to the widespread adoption of regenerative farming practices. Unlike capital-intensive technological alternatives, these solutions allow for immediate implementation through accessible methods such as cover cropping, agroforestry, and conservation tillage, which simultaneously enhance soil health and capture carbon. This expansion is further supported by significant policy incentives from organizations like the USDA, which actively fund climate-smart agricultural initiatives. Consequently, stakeholders increasingly prioritize these cost-effective and scalable interventions to meet sustainability mandates, driving rapid segmental development.

Regional Insights

North America maintains a leading position in the Global Agriculture Carbon Sequestration Market due to the extensive implementation of conservation practices and established policy frameworks. The United States Department of Agriculture supports this expansion through programs that incentivize farmers to adopt reduced tillage and cover cropping. Furthermore, the integration of voluntary carbon trading platforms allows agricultural landowners to monetize sequestration projects effectively. This alignment between regulatory initiatives and commercial market mechanisms drives the continued development of carbon management solutions across the region.

Recent Developments

• In December 2024, Indigo Ag entered into a strategic agreement with Catona Climate to supply 250,000 agricultural soil carbon credits. This deal represented the largest single reservation of credits from the company’s program and provided the buyer with exclusive access to verified offsets generated by United States farmers adopting regenerative practices. The credits were validated by the Climate Action Reserve and aimed to support corporations in meeting their climate goals. The partnership underscored the growing scale of the soil carbon market and the increasing demand for high-integrity, nature-based removal assets derived from sustainable farming changes.
• In September 2024, Eion secured a contract to deliver 8,000 tons of permanent carbon removal credits to Microsoft and closed a $3 million Series A extension to scale its operations. The agreement utilized the company’s enhanced rock weathering technology, which involved applying crushed olivine mineral to farmland to absorb atmospheric carbon dioxide. This collaboration highlighted the commercial validation of mineral-based soil sequestration methods, with verification conducted through a proprietary direct measurement approach that tracked the rate of mineral weathering and carbon capture. The deal supported the deployment of the mineral on agricultural lands in the Mid-Atlantic region.
• In July 2024, Yara International and PepsiCo Europe announced a long-term partnership to decarbonize crop production across the food value chain. The collaboration focused on equipping farmers with low-carbon fertilizers and precision farming tools to reduce emissions and boost nutrient use efficiency. The companies committed to a program covering approximately 1,000 farms and 128,000 hectares in the European Union and the United Kingdom, initially targeting potato crops. This strategic alliance aimed to replace conventional fertilizers with products manufactured using renewable ammonia or carbon capture technologies, thereby significantly lowering the carbon footprint of agricultural inputs.
• In January 2024, Loam Bio introduced its microbial technology to the United States market, launching a seed treatment designed to increase stable soil carbon. The company released its CarbonBuilder product for soybean farmers in the Corn Belt and Upper Midwest, enabling them to improve soil health while generating high-quality carbon credits. This launch was accompanied by the SecondCrop carbon program, which provided farmers with a transparent pathway to measure and sell the sequestered carbon. The initiative aimed to enhance the economic viability of carbon farming by using biologicals to build stable carbon pools in agricultural soils.

Key Market Players

• Indigo Ag, Inc.
• Soil Capital SPRL
• Yara International ASA
• Carbon8 Systems Ltd.
• The Cool Farm
• Corteva Agriscience
• BASF SE
• Syngenta Crop Protection AG
• Carbo Culture
• Charm Industrial, Inc.

By Raw Material	By Application	By Region
Natural-Based Solution Technology-Based Solution	Crop Farming Livestock Farming Forestry Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Agriculture Carbon Sequestration Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Agriculture Carbon Sequestration Market, By Raw Material:

• Natural-Based Solution
• Technology-Based Solution

• Agriculture Carbon Sequestration Market, By Application:

• Crop Farming
• Livestock Farming
• Forestry
• Others

• Agriculture Carbon Sequestration Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE