America’s corn farmers are struggling to make ends meet, but carbon farming offers timely financial help.

“We really need something right now because 200-bushel corn harvested at $4.50 is breakeven,” says Missouri corn grower Gary Porter.

On Porter’s farm just south of the Iowa border, added earnings come from changes in production practices. Largely driven by the Carbon by Indigo program, which pays farmers to adopt sustainable practices that enhance soil health and sequester carbon, he earns up to $30 per metric ton.

“Carbon payments are the only profit I got,” he says. “We don't have anything else.”

And the Missouri farmer looks for those carbon payments to move even higher.

“There are rumors of it going up to $100 a ton,” he says. “Companies are moving toward carbon neutral and have to have carbon offsets. So, this can really be a big benefit for farmers if prices keep going up.”

Engaging in carbon markets for Missouri farmer Gary Porter included planting cover crops on his Mercer County farm. It is just one practice he incorporated as part of Carbon by Indigo Ag. Photos by Mindy Ward (On mobile devices, scroll down to read captions.)

Changes for revenue

For decades, the disc-cultivate-plant routine worked on Gary Porter’s farm, but he knew the benefits of no till practices.

“We dabbled a little bit with it on some acres and then carbon and Indigo came along,” he says. “It gave us the incentives to try even more.” Porter, along with his three sons, reduces tillage across more acres every year.

The family also started incorporating cover crops into their farm management plan by sowing rye grass after corn.

“When you look out and the fields are all green,” Porter says, “it’s just neat to see. We’ve found the roots go down deep, helping build our soil health.”

However, the biggest struggle with this added carbon farming practice is ROI.

Carbon programs give farmers an additional revenue stream but not just for one year. Practices like cover crops promote soil health, which is something Gary Porter says will last for future generations. (On mobile devices, scroll down to read captions.)

Cover crop conundrum

Government cost-share programs for cover crops do not pay off, according to Porter.

“I can’t go out and put $28 per acre into a cover crop, when they will pay me $5 or $10 per acre to do it,” he says. “I know that it is benefiting my soil in the long run, but I have to see a return on investment to make financial sense.”

That is where stacking carbon incentives come into play, according to Matt Powe, an agronomist with Indigo Ag.

“You can’t get paid for two company carbon programs,” he explains, “but you can stack government payments or state subsidy payments with carbon programs.”

Porter says stacking public and private carbon programs makes adopting cover cropping more feasible for the conventional farmer. Indigo Ag is offering $20 per acre minimum for cover crops through Aug. 31.

Savings on nitrogen

The financial benefits of carbon farming are not solely found by reducing tillage or adding cover crops to an operation. Part of Indigo Carbon Program includes nitrogen timing improvements, and Porter saw great returns from this added crop management practice.

“We now use a banding and plant right on top of it,” he says. “One pass and we’re done.”

This application allows him to place nitrogen at the right rate, right place, and right time. “We use a very targeted approach,” he adds, “only applying what is necessary for the plant.”

The new practice works with an average corn yield increase of 22 bushels per acre, with tests showing up to 26-bushel-per-acre increase with the banding.

It also lowers fuel costs and reduces soil compaction with fewer trips across the field.

Payoff for carbon farming

In 2024, farmers in Indigo Ag’s sustainability programs--carbon and sustainable crops--earned more than $12 million.

When Porter started the program, payouts were $20 per metric ton. Today, that payment has more than doubled.

“And they don’t keep it,” he explains, “75% of that still goes to the farmer. As the price of carbon grows, so will my payment.” He adds Indigo Ag’s online Carbon Cacluator makes it easy to see the potential payment per year.

“The selling point for me was that I am not locked in to a 10-year contract,” Porter says. “With Indigo, I can get out at any time. But from what we’ve seen so far, how it works for our farm for both soil health and payback, I don’t see us getting out.