FARMERS BUSINESS NETWORK, GRADABLE LAUNCH CARBON CREDITS PROGRAM
Feb. 23, 2021
Source: joint organizations news release
San Carlos, CA & Chicago - Gradable, a leading technology and services provider for scoring, sourcing, and pricing Low-Carbon Grain from farm-to-fork, today announced it has launched Gradable Carbon, a groundbreaking offering that empowers farmers to generate carbon credits, and gives them flexibility over when and where they sell them.
"We believe the best way to create meaningful, long-term change is to provide farmers with the choice and power to participate in the carbon market on their own terms," said Devin Lammers, President & CEO, Gradable. "Gradable Carbon creates a win-win proposition that incentivizes farmers, while giving them more control over their carbon credits and enabling them to take advantage of the many emerging opportunities that reward regenerative practices."
Gradable Carbon is unique compared with other carbon programs in several distinct ways:
• Gradable Carbon provides increased flexibility for farmers to capture the value of their practices
- Farmers in the Carbon program retain optionality to capitalize on new markets and transition into other sustainability programs in the environmental supply chain, as alternatives develop over time. Currently, compensating farmers via carbon credits for sequestering carbon may be the most immediate opportunity. However, Gradable believes opportunities like its existing low-carbon biofuels pilot program with POET, which pays premiums to farmers for their environmentally-friendly grain, will expand over time.
• Gradable Carbon does not lock farmers into fixed prices at the time of enrollment
- Farmers are able to participate in potential price appreciation and even bank credits for a period of time, with the security of a fixed price floor at $20 per credit in the first year. Gradable retains a portion of each credit generated to cover insurance, administration, and fees.
• Gradable Carbon supports farmers in maximizing their carbon credit potential
- Additional services include personalized analytics and crop nutrition plans to support farmers' transition to sustainable agriculture, while enabling the farmer to maximize return on investment (ROI).
As consumers, companies, and the new White House administration strive to reduce and offset carbon footprints and advance green initiatives, Gradable has developed the platform to generate credits on the behalf of farmers. Participating farmers gain the freedom to sell earned credits at the price floor or at a future price when carbon credits are expected to increase in value.
As part of Gradable's program to help farmers maximize their returns on carbon credits, Gradable will offer agronomy support to farmers looking to adopt regenerative practices, known as Gradable Plan. This multi-year, per-acre service, which includes soil sampling and custom crop nutrition recommendations, is designed to ensure farmers are maximizing the ROI of their operation.
Importantly, Gradable is partnering with major grain aggregators and processors, such as Landus Cooperative and POET, LLC, to collect broad farmer feedback on existing programs and develop downstream markets that reward sustainable agricultural practices that make sense for farmers and agribusiness alike.
"Carbon credits have the potential to jumpstart a market for farm-generated environmental services and help lay the foundation for large, long-term investments in a more sustainable agriculture supply chain," said Matt Carstens, President and CEO, Landus. "We want to be able to prepare our farmer-owners and give them access to these opportunities as they develop."
Farmers generate offset credits through practices like cover cropping, conservation tillage, and nitrogen management. These practices can also reduce scope 3 emissions, as insets, which directly reduce the footprint of a buyer. With insets, environmental characteristics of grain flow directly down the supply chain to end users of agricultural products, from food companies to biofuel producers.
The launch of Gradable Carbon and Gradable Plan are the latest innovations in the company's mission to empower family farms:
• September 2020 - Gradable launched to provide growers with a market for premium, environmentally-scored grain, with POET as an early customer.
• October 2020 - Gradable presented to the California Air Resources Board (CARB) to demonstrate how its program for scoring variable grain feedstock can help biofuel makers reduce their carbon intensity levels.
Gradable's technology-forward solutions will help farmers understand where they are today and how to most effectively improve farm sustainability outcomes.
"In addition to developing efficient and credible programs, our job is to help farmers maximize ROI as complex environmental payments are introduced to Ag markets," said Steele Lorenz, Head of Sustainability at Gradable. "Gradable will be there with modern, data-driven analytics to help farmers successfully balance sustainability and profitability goals."
Farmers and grain buyers interested in participating in the new Gradable Carbon program can visit gradable.com/carbon to sign up for more information.