Why carbon credit is the key to healthy homelands

Photo: Tom De Decker

For generations, ranchers near and far have understood the unspoken rule that by managing livestock, they will provide a compilation of goods for the American people. And once these products are supplied to consumers, farmers make a profit, and the cycle starts again. 

In an always-shifting society, however, a new profit opportunity might slowly be emerging among the world of farming. The heart of it all? Carbon credits.

A carbon credit is essentially a permit that allows a company to emit a certain amount of greenhouse gases, typically one ton of carbon dioxide or an equivalent amount of other gases. The goal being to reduce overall pollution to combat climate change in the atmosphere. As a market-based system, carbon credits provide monetary value, encouraging companies to balance their emissions by investing in sustainable projects, such as renewable energy or forest conservation.

According to Andrew Coppin, CEO of Ranchbot and an expert in farming, the answer to tapping into carbon credits for ranchers is an obvious yes—but only if there is evident proof to back it up. 

“Carbon credits can be a powerful revenue stream for farmers and ranchers. These credits are opening a door to recognition and reward for the stewardship ranchers and farmers have been practicing all along. But, none of it really matters without the data to back it up. Without proof of how your land is storing carbon, you’re not in the game,” he said.

Additionally, if there is no solid farming strategy to begin with, Coppin argues, carbon credits might otherwise backfire.

“It starts with understanding your soil, your practices, and your impact over time. But, for producers willing to do the work, carbon markets can reward what good stewards have always known: that the land gives more when you give back to it,” Coppin explained.

Given the urgency of today’s climate crisis, there’s growing pressure for companies to consider adopting carbon credits. And as data suggests, the demand for the carbon economy has increased in recent years. Last year, for example, around 255 million credits were issued, while 162 million were used. Strikingly, Shell was the largest user in 2024, marking a year in which fossil fuel companies dominated the carbon market.

As more companies aim to meet climate targets, farmers and ranchers are following the trend with great strategy. This means turning to healthy environmental practices for their pastures, like rotational grazing and reforestation, to result in real, measurable income.

Yet, like most economical tools, carbon credits certainly have its challenges.

On one side, carbon credits have historically lacked standardized methodologies for measuring and verifying carbon reduction, making it difficult to compare projects and ensure their effectiveness. Also, with concerns about the transparency of the carbon market, there is ongoing question about the potential for fraud and public trust in the market. Other worries include the regulation around carbon offset projects, where government leaders are slowly stepping in to control operations.

Regardless, the opportunity to make revenue from efficient farming is real, and the benefits are even more priceless. 

With a new stream of income, enhanced soil health, financial incentives, and climate change mitigation, ranchers are running fast with the carbon economy. And in a matter of years, homelands will soon start to witness the long-term advantages firsthand.

Experts agree that approaching this opportunity with resilience will be the key to advancing America’s farms head-on. For a nation long focused on lively agriculture to survive, the demand for carbon credits will be the only way to sustain these products more.

While healthy soil is not just a way to upkeep livestock, carbon credits prove it is a move to strengthen profit amongst the agricultural industry. In shifting toward the carbon economy, farmers and ranchers alike will not only protect their land, but also their legacy.