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FARMERS REPORT CARBON PAYMENTS THEY ARE RECEIVING IN PURDUE/CME AG ECONOMY BAROMETER
Sep. 7, 2022
Source: Purdue/CME Ag Economy Barometer
Several Ag Economy Barometer survey's over the last two years have included questions regarding producers' exposure to and experience with companies offering payments for capturing carbon.
In this month's survey, 9 percent of respondents said they have engaged in discussions with companies offering payments for carbon capture. This is by far and away the highest percentage of respondents indicating they've engaged in carbon capture discussions with one or more companies.
In prior surveys, the percentage of producers talking to companies about receiving payments for carbon capture ranged from a low of just over 2% to less than 6%. Three-fourths of respondents said the payment rate per metric ton of carbon offered was less than $20. Just 1% of all respondents to the August barometer survey said they have signed a carbon contract.
The survey asked respondents who said they engaged in discussions but chose not to sign a carbon contract the minimum payment per acre they would accept to enroll their farm in a carbon capture program. Two-thirds of respondents said the payment rate needed to be at least $30 per acre, suggesting that payment rates need to rise to encourage more participation in carbon capture programs.
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