Carbon Farming Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Project Type (Afforestation/Reforestation, Soil Carbon Sequestration, Agroforestry, Biochar, Silvopasture), By Practice (Cover Cropping, Conservation Tillage, Crop Rotation, Integrated Crop-Livestock System), By End User (Farmers & Ranchers, Corporations, Government Agencies, Non-Profit Organisations), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 544.34 Million
CAGR (2026-2031)	15.46%
Fastest Growing Segment	Integrated Crop-Livestock System
Largest Market	North America
Market Size (2031)	USD 1289.61 Million

Market Overview

The Global Carbon Farming Market will grow from USD 544.34 Million in 2025 to USD 1289.61 Million by 2031 at a 15.46% CAGR. Carbon farming refers to a specialized suite of agricultural management practices designed to sequester atmospheric carbon dioxide into soil and plant biomass, effectively functioning as a nature-based solution to climate change while generating tradable carbon credits. The expansion of this market is primarily supported by the intensifying demand from corporations seeking high-quality removal offsets to meet rigorous net-zero emissions targets. Furthermore, the critical imperative to rehabilitate degraded arable land for long-term food security acts as a structural driver, providing an economic incentive for adoption that exists independently of voluntary carbon market fluctuations.

However, the sector faces a substantial challenge regarding the measurement, reporting, and verification (MRV) of soil organic carbon, where high costs and technical complexity currently impede scalable implementation. The lack of unified, cost-effective quantification protocols often generates uncertainty regarding credit integrity, which can deter risk-averse investors. According to Forest Trends' Ecosystem Marketplace, in 2024, the agriculture project category uniquely recorded an increase in average credit prices due to buyer preference for removal assets, even as the total voluntary carbon market transaction value contracted to USD 535 million.

Key Market Drivers

The surge in corporate net-zero pledges and ESG commitments is fundamentally reshaping the demand dynamics of the Global Carbon Farming Market. As multinational organizations strive to decarbonize their supply chains, particularly Scope 3 emissions, they are increasingly partnering with agricultural producers to implement regenerative practices that generate verifiable carbon assets. This aggressive procurement strategy is driven by the need to secure high-integrity removal credits to substantiate public climate claims and mitigate regulatory risks. According to the Science Based Targets initiative, March 2024, in the 'SBTi Monitoring Report 2023', the number of companies with validated science-based targets doubled to 4,204 by the end of 2023, signaling a massive future requirement for land-based carbon removals to offset unavoidable emissions.

Concurrently, the implementation of supportive government policies and financial incentives is de-risking the operational transition for agricultural producers. Public sector funding is essential to bridge the financial gap between the initial capital outlay required for cover crops or no-till equipment and the eventual realization of carbon revenue. For instance, according to the U.S. Department of Agriculture, April 2024, in a 'Press Release', the agency announced the availability of $1.5 billion in fiscal year 2024 for the Regional Conservation Partnership Program to help farmers adopt climate-smart practices. These public mechanisms often function alongside private payment schemes, enhancing the overall economic viability of soil sequestration projects. Illustrating this private sector momentum, according to Agreena, in 2024, the company paid out €15 million to farmers across Europe for generated carbon certificates, confirming the rising liquidity available to early adopters.

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Key Market Challenges

The most significant challenge hampering the growth of the Global Carbon Farming Market is the high cost and technical complexity associated with the Measurement, Reporting, and Verification (MRV) of soil organic carbon. Accurate quantification of carbon sequestration in soil requires rigorous and expensive sampling protocols, which often erode the profit margins for farmers and render smaller projects economically unviable. This lack of cost-effective, unified methodologies creates systemic uncertainty regarding the validity of carbon removal claims, leading to a shortage of high-integrity assets that corporate buyers can trust. Consequently, risk-averse investors often withhold capital due to concerns over credit quality and potential reputational risks related to greenwashing. This structural bottleneck directly constrains the supply side of the market, preventing the rapid scaling necessary to meet global demand. According to Forest Trends' Ecosystem Marketplace, in 2024, the volume of carbon credits issued in the voluntary market fell by 20 percent, a contraction largely attributed to the slowdown in project registrations and intensified scrutiny of land-use methodologies. This decline in issuance illustrates how MRV limitations are actively stifling the pipeline of verified projects essential for market expansion.

Key Market Trends

The Integration of AI and Satellite-Based MRV Systems is fundamentally transforming the Global Carbon Farming Market by dismantling the cost barriers associated with traditional soil sampling. New remote sensing technologies utilize machine learning algorithms to analyze satellite imagery, allowing for the accurate quantification of soil organic carbon levels across vast agricultural landscapes without the need for expensive physical lab tests. This technological evolution effectively decouples operational scaling from administrative costs, enabling smaller farms to participate profitably in carbon markets. A testament to this operational shift occurred when, according to Boomitra, June 2025, in a 'Press Release', the company finalized a landmark agreement to deliver 500,000 carbon removal credits that were verified exclusively through its proprietary AI and remote sensing capabilities, proving the commercial acceptance of digital verification.

Concurrently, the Emergence of High-Integrity and Removal-Based Carbon Credits is shifting capital flows toward durable sequestration assets. Corporate buyers are increasingly abandoning low-cost avoidance offsets in favor of credits derived from methodologies with lower reversal risks, such as biochar application and measurable soil carbon enhancement. This flight to quality is driving substantial long-term investment into the supply side of the market, as stakeholders prioritize assets that can withstand rigorous scrutiny regarding permanence and additionality. This trend is highlighted by the fact that, according to South Pole, May 2025, in the 'Nature-based and tech-based carbon removals' report, investors committed nearly $30 billion to carbon removal projects between 2021 and 2024, signaling a robust market preference for high-quality sequestration over simple emission reductions.

Segmental Insights

Market assessments highlight the Integrated Crop-Livestock System as the fastest-growing segment in the Global Carbon Farming Market. This rapid expansion is driven by the method's ability to maximize land productivity while significantly improving soil carbon sequestration. By combining crop cultivation with livestock grazing, the system creates a symbiotic cycle where natural nutrient recycling reduces the need for synthetic fertilizers. This holistic approach enhances soil structure and weather resilience, making it a highly attractive strategy for stakeholders aiming to meet sustainability goals and optimize agricultural output without expanding land usage.

Regional Insights

North America commands the largest share of the Global Carbon Farming Market, primarily due to supportive legislative frameworks and the widespread implementation of regenerative agriculture. The United States Department of Agriculture actively accelerates market expansion by offering financial incentives for soil carbon sequestration projects, significantly boosting participation rates. Additionally, the presence of established voluntary carbon trading platforms allows agricultural producers to monetize emission reductions effectively. This integration of strong public policy and private sector investment fosters a stable environment for industry development, securing North America’s position as the global leader.

Recent Developments

• In June 2025, Indigo Ag finalized a new agreement with Microsoft to supply 60,000 soil carbon credits generated through its regenerative farming projects in the United States. This transaction represented the largest single issuance of credits to an individual buyer by the company to date and utilized credits verified from its fourth carbon crop. The partnership underscored the continued corporate demand for high-integrity, nature-based removal solutions in the carbon farming market. The revenue from these credit sales was designated to support farmers adopting sustainable practices, further incentivizing the transition to agricultural methods that enhance soil carbon sequestration.
• In October 2024, Agreena reported a significant expansion in its operations, announcing that it was actively working with over 2,300 farmers across Europe to transition land to regenerative agriculture. The company disclosed that these partnerships covered a total of 4.5 million hectares, marking an increase of 2.5 million hectares from the previous year. Through its AI-powered digital measurement, reporting, and verification platform, the company tracked the implementation of practices such as reduced soil disturbance. This milestone highlighted the growing adoption of the company's soil carbon program, which enables farmers to generate verified certificates for sale in the global carbon farming market.
• In July 2024, Yara entered into a strategic collaboration with PepsiCo to supply low-carbon fertilizers to farms across the European Union and the United Kingdom. This partnership aimed to decarbonize the food value chain by equipping approximately 1,000 farms with crop nutrition products produced from renewable ammonia or via carbon capture and storage technologies. The initiative focused on covering about 25% of the partner company's crop fertilizer requirements in Europe by 2030. By utilizing these advanced inputs alongside precision farming digital tools, the companies sought to significantly reduce the carbon footprint of agricultural production within the expanding carbon farming sector.
• In January 2024, Loam Bio announced its expansion into the United States agricultural sector with the commercial launch of its microbial seed treatment, CarbonBuilder, and its associated carbon credit program, SecondCrop. The CarbonBuilder technology utilizes beneficial soil fungi to enhance the accumulation of stable organic carbon in the soil, thereby increasing farm profitability and improving long-term soil health. Targeted at soybean farmers in states such as Iowa and Minnesota, this initiative aimed to remove barriers to entry in the global carbon farming market. The program was designed to allow growers to retain ownership of the credits generated from their sequestration efforts, fostering greater participation in regenerative agriculture.

Key Market Players

• Vayda, Inc.
• Terramera, Inc.
• Indigo Ag Inc.
• Soil Capital SPRL
• Agoro Carbon Alliance
• Carbon Sequestration Inc.
• Agreena Copenhagen
• HARADA CORPORATION
• Continuum Ag
• Robofarm GmbH

By Project Type	By Practice	By End User	By Region
Afforestation/Reforestation Soil Carbon Sequestration Agroforestry Biochar Silvopasture	Cover Cropping Conservation Tillage Crop Rotation Integrated Crop-Livestock System	Farmers & Ranchers Corporations Government Agencies Non-Profit Organisations	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Carbon Farming Market , By Project Type:

• Afforestation/Reforestation
• Soil Carbon Sequestration
• Agroforestry
• Biochar
• Silvopasture

• Carbon Farming Market , By Practice:

• Cover Cropping
• Conservation Tillage
• Crop Rotation
• Integrated Crop-Livestock System

• Carbon Farming Market , By End User:

• Farmers & Ranchers
• Corporations
• Government Agencies
• Non-Profit Organisations

• Carbon Farming 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