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Agriculture Sector

India Begins Soil-Carbon Payments to Farmers, Opening a New Revenue Opportunity for Sustainable Agriculture **NEW DELHI:** India has begun making payments to farmers linked to verified soil-carbon credits, marking a significant development in the country’s efforts to connect sustainable farming practices with emerging carbon markets. More than **2,500 farmers across Punjab and Haryana** are receiving payments associated with measured improvements in soil carbon, according to reports on the initiative. The development offers a new potential source of income for farmers while encouraging agricultural practices aimed at improving soil health and reducing greenhouse-gas emissions. The initiative comes as agriculture faces growing pressure to increase productivity while protecting natural resources. Continuous cultivation, excessive tillage, inefficient fertiliser use and declining soil organic matter can affect soil quality over time. Carbon-focused farming practices seek to address some of these challenges by increasing the amount of carbon stored in agricultural soils. ## What Are Soil-Carbon Credits? Soil-carbon credits are linked to the amount of carbon that agricultural practices can help remove from the atmosphere or retain in soil. Farmers can potentially generate credits by adopting practices that increase soil organic carbon or reduce emissions. Depending on the methodology used, these practices can include **reduced or zero tillage, improved residue management, cover crops, crop diversification, efficient fertiliser use and other regenerative farming techniques**. Credits are generally based on measured or verified changes rather than simply on whether a farmer has adopted a particular practice. This distinction is important because carbon markets require evidence that claimed emissions reductions or carbon storage have actually occurred. ## Creating an Additional Income Stream For farmers, the most significant feature of carbon farming is the possibility of receiving income beyond conventional crop sales. Agricultural revenue can fluctuate considerably because of weather, input prices, crop prices and market conditions. Payments associated with verified environmental outcomes could potentially provide farmers with an additional source of income. The emerging model links a farmer’s land-management decisions with demand from organisations seeking to account for or compensate for greenhouse-gas emissions. If carbon markets continue to develop, farmers who adopt suitable practices could potentially earn additional payments while also improving the long-term condition of their soil. ## Why Soil Health Matters Soil is one of agriculture’s most important natural resources. Healthy soils contain organic matter that supports soil structure, water retention and biological activity. Increasing soil organic carbon can contribute to improved soil quality, although the effects depend on local conditions, crop systems and management practices. Improved soil structure can potentially help fields retain water and withstand periods of moisture stress. For Indian agriculture, this is particularly relevant as farmers in many regions face increasing pressure from irregular rainfall and water availability. Better soil management can therefore have benefits that extend beyond carbon accounting. ## Farmers and Regenerative Agriculture The growth of soil-carbon programmes is also encouraging greater interest in **regenerative and climate-smart agriculture**. These approaches generally focus on improving soil health while maintaining or increasing agricultural productivity. Practices such as reduced tillage can limit soil disturbance. Keeping crop residues in fields can return organic material to the soil. Cover crops can protect soil between production cycles, while crop diversification can support soil biological activity. However, no single practice is suitable for every farm. Farmers need to consider local soil characteristics, water availability, crop requirements, machinery, labour and economics before changing their production systems. ## Measuring Carbon Is a Critical Step One of the biggest challenges in soil-carbon markets is determining how much carbon has actually been stored. Unlike a manufactured product, soil carbon can change over time because of weather, cultivation and biological processes. Carbon-credit programmes therefore need systems for **measurement, reporting and verification**. Soil samples, field records, remote sensing, modelling and other monitoring methods can be combined to estimate changes in soil carbon. Reliable verification is essential because buyers of carbon credits need confidence that the environmental benefit represented by a credit is real. For farmers, accurate measurement is equally important because payments depend on the amount of verified carbon benefits attributed to their land. ## The Importance of Long-Term Monitoring Soil-carbon storage is not necessarily permanent. Carbon levels can decline if land-management practices are reversed. For example, a farmer who moves toward reduced tillage and improved residue management may increase soil carbon over time, but changes in future farming practices could affect those gains. This means carbon programmes need long-term monitoring rather than relying only on a one-time measurement. Clear rules around monitoring, verification and the duration of carbon storage will be important as India’s agricultural carbon market develops. ## Punjab and Haryana at the Centre of the Initiative Punjab and Haryana have particular significance in India’s agricultural landscape. The two states are major contributors to the country’s food production, particularly through intensive cereal-based farming systems. At the same time, intensive agriculture has created concerns around soil health, water use and crop-residue management. This makes the region an important testing ground for approaches that attempt to combine farm productivity with environmental improvements. If carbon-linked payments prove economically viable, they could provide farmers with an additional incentive to experiment with improved soil-management practices. ## Carbon Markets and Indian Agriculture The emergence of agricultural carbon credits reflects the broader development of India’s carbon-market ecosystem. Carbon markets are designed to create an economic value for emissions reductions or carbon removal. Companies and other organisations may purchase credits depending on regulatory requirements, voluntary commitments or other market mechanisms. Agriculture represents a potentially large area of opportunity because soils, vegetation and agricultural practices interact directly with the carbon cycle. However, agricultural carbon markets are still developing, and their long-term impact will depend on the quality of crediting methodologies, market demand and the costs associated with monitoring and verification. ## Technology Could Lower the Cost of Participation Digital technologies could play an increasingly important role in expanding soil-carbon programmes. Satellite imagery can help monitor agricultural land, while digital farm records can provide information about crop rotations and field practices. Soil sensors and improved sampling techniques can provide additional data. Artificial intelligence and machine-learning models may also help analyse large quantities of agricultural and environmental information. The use of technology could eventually reduce the cost of measuring and verifying carbon outcomes, making smaller farms more practical participants in carbon markets. ## Making Carbon Farming Accessible to Small Farmers India’s agricultural landscape is dominated by small and marginal farmers, which means that accessibility will be critical. If carbon-credit programmes involve expensive testing, complicated contracts or high administrative costs, smaller farmers may struggle to participate. Programmes that aggregate farmers across multiple villages or regions could potentially reduce these costs. Farmer-producer organisations, cooperatives and other agricultural institutions could also play a role by helping farmers understand carbon programmes, coordinate participation and access technical assistance.
Agriculture

India Begins Soil-Carbon Payments to Farmers, Opening a New Revenue Opportunity for Sustainable Agriculture **NEW DELHI:** India has begun making payments to farmers linked to verified soil-carbon credits, marking a significant development in the country’s efforts to connect sustainable farming practices with emerging carbon markets. More than **2,500 farmers across Punjab and Haryana** are receiving payments associated with measured improvements in soil carbon, according to reports on the initiative. The development offers a new potential source of income for farmers while encouraging agricultural practices aimed at improving soil health and reducing greenhouse-gas emissions. The initiative comes as agriculture faces growing pressure to increase productivity while protecting natural resources. Continuous cultivation, excessive tillage, inefficient fertiliser use and declining soil organic matter can affect soil quality over time. Carbon-focused farming practices seek to address some of these challenges by increasing the amount of carbon stored in agricultural soils. ## What Are Soil-Carbon Credits? Soil-carbon credits are linked to the amount of carbon that agricultural practices can help remove from the atmosphere or retain in soil. Farmers can potentially generate credits by adopting practices that increase soil organic carbon or reduce emissions. Depending on the methodology used, these practices can include **reduced or zero tillage, improved residue management, cover crops, crop diversification, efficient fertiliser use and other regenerative farming techniques**. Credits are generally based on measured or verified changes rather than simply on whether a farmer has adopted a particular practice. This distinction is important because carbon markets require evidence that claimed emissions reductions or carbon storage have actually occurred. ## Creating an Additional Income Stream For farmers, the most significant feature of carbon farming is the possibility of receiving income beyond conventional crop sales. Agricultural revenue can fluctuate considerably because of weather, input prices, crop prices and market conditions. Payments associated with verified environmental outcomes could potentially provide farmers with an additional source of income. The emerging model links a farmer’s land-management decisions with demand from organisations seeking to account for or compensate for greenhouse-gas emissions. If carbon markets continue to develop, farmers who adopt suitable practices could potentially earn additional payments while also improving the long-term condition of their soil. ## Why Soil Health Matters Soil is one of agriculture’s most important natural resources. Healthy soils contain organic matter that supports soil structure, water retention and biological activity. Increasing soil organic carbon can contribute to improved soil quality, although the effects depend on local conditions, crop systems and management practices. Improved soil structure can potentially help fields retain water and withstand periods of moisture stress. For Indian agriculture, this is particularly relevant as farmers in many regions face increasing pressure from irregular rainfall and water availability. Better soil management can therefore have benefits that extend beyond carbon accounting. ## Farmers and Regenerative Agriculture The growth of soil-carbon programmes is also encouraging greater interest in **regenerative and climate-smart agriculture**. These approaches generally focus on improving soil health while maintaining or increasing agricultural productivity. Practices such as reduced tillage can limit soil disturbance. Keeping crop residues in fields can return organic material to the soil. Cover crops can protect soil between production cycles, while crop diversification can support soil biological activity. However, no single practice is suitable for every farm. Farmers need to consider local soil characteristics, water availability, crop requirements, machinery, labour and economics before changing their production systems. ## Measuring Carbon Is a Critical Step One of the biggest challenges in soil-carbon markets is determining how much carbon has actually been stored. Unlike a manufactured product, soil carbon can change over time because of weather, cultivation and biological processes. Carbon-credit programmes therefore need systems for **measurement, reporting and verification**. Soil samples, field records, remote sensing, modelling and other monitoring methods can be combined to estimate changes in soil carbon. Reliable verification is essential because buyers of carbon credits need confidence that the environmental benefit represented by a credit is real. For farmers, accurate measurement is equally important because payments depend on the amount of verified carbon benefits attributed to their land. ## The Importance of Long-Term Monitoring Soil-carbon storage is not necessarily permanent. Carbon levels can decline if land-management practices are reversed. For example, a farmer who moves toward reduced tillage and improved residue management may increase soil carbon over time, but changes in future farming practices could affect those gains. This means carbon programmes need long-term monitoring rather than relying only on a one-time measurement. Clear rules around monitoring, verification and the duration of carbon storage will be important as India’s agricultural carbon market develops. ## Punjab and Haryana at the Centre of the Initiative Punjab and Haryana have particular significance in India’s agricultural landscape. The two states are major contributors to the country’s food production, particularly through intensive cereal-based farming systems. At the same time, intensive agriculture has created concerns around soil health, water use and crop-residue management. This makes the region an important testing ground for approaches that attempt to combine farm productivity with environmental improvements. If carbon-linked payments prove economically viable, they could provide farmers with an additional incentive to experiment with improved soil-management practices. ## Carbon Markets and Indian Agriculture The emergence of agricultural carbon credits reflects the broader development of India’s carbon-market ecosystem. Carbon markets are designed to create an economic value for emissions reductions or carbon removal. Companies and other organisations may purchase credits depending on regulatory requirements, voluntary commitments or other market mechanisms. Agriculture represents a potentially large area of opportunity because soils, vegetation and agricultural practices interact directly with the carbon cycle. However, agricultural carbon markets are still developing, and their long-term impact will depend on the quality of crediting methodologies, market demand and the costs associated with monitoring and verification. ## Technology Could Lower the Cost of Participation Digital technologies could play an increasingly important role in expanding soil-carbon programmes. Satellite imagery can help monitor agricultural land, while digital farm records can provide information about crop rotations and field practices. Soil sensors and improved sampling techniques can provide additional data. Artificial intelligence and machine-learning models may also help analyse large quantities of agricultural and environmental information. The use of technology could eventually reduce the cost of measuring and verifying carbon outcomes, making smaller farms more practical participants in carbon markets. ## Making Carbon Farming Accessible to Small Farmers India’s agricultural landscape is dominated by small and marginal farmers, which means that accessibility will be critical. If carbon-credit programmes involve expensive testing, complicated contracts or high administrative costs, smaller farmers may struggle to participate. Programmes that aggregate farmers across multiple villages or regions could potentially reduce these costs. Farmer-producer organisations, cooperatives and other agricultural institutions could also play a role by helping farmers understand carbon programmes, coordinate participation and access technical assistance.

by Chaitanya Salvi
September 17, 2026
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India Begins Soil-Carbon Payments to Farmers, Opening a New Revenue Opportunity for Sustainable Agriculture NEW DELHI: India has begun making...

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