We had the pleasure of speaking with Max DuBuisson, Head of Impact and Integrity at Indigo Ag, about the soil carbon market, their innovative approach to sustainable agriculture and the role of carbon markets in driving positive change. Our conversation explored Indigo Ag’s commitment to empowering farmers through diverse economic opportunities and their dedication to ensuring the integrity of carbon credits.

Key Takeaways 

• Indigo Ag is committed to sustainable agriculture, employing a science-first, technology-driven approach that differentiates them in the carbon market. They focus on providing farmers flexibility and choice, ensuring integrity across carbon crediting and insetting claims.
• The integrity and long-term impact of soil carbon projects are ensured by requiring farmers to adopt new practices and conducting comprehensive assessments to guarantee additionality. Permanence risks are managed through active land management, a buffer pool, and incentivized farmer participation, further solidifying the environmental benefits of the carbon credits.
• Indigo Ag’s carbon credit prices have steadily increased from $20 to a range of $60-$80+ per ton, reflecting their commitment to fair farmer compensation and their belief in the long-term value of soil carbon sequestration. They believe a price point of $100+ per ton is necessary to incentivize widespread adoption of sustainable practices and ensure fair compensation for farmers, who receive 75% of the average credit sale price.
• Beyond the VCM, Indigo Ag offers a range of programs, including Scope 3 and sustainable sourcing initiatives, to provide farmers with diverse income streams and promote sustainable practices. This flexibility is crucial for adapting to changing market conditions and ensuring the long-term scalability

Introduction and Background

cCarbon: Can you share your background and how you came to lead sustainability policy at Indigo Ag?

Max DuBuisson: I’ve been with Indigo for four and a half years. My background is in biology and environmental management, with 11 years at the Climate Action Reserve focused on policy, protocol development, and project reviews. I joined Indigo in 2020 to lead methodology development for our carbon program. Since then, I’ve focused on scaling our U.S. soil carbon project, expanding sustainable sourcing programs, engaging with external stakeholders, and starting to tackle Indigo’s own carbon footprint.

cCarbon: Could you provide an overview of Indigo Ag’s mission and the ways you’re working to make agriculture more sustainable?

Max DuBuisson: At Indigo Ag, our mission is harnessing nature to help farmers sustainably feed the planet. We started by developing microbial seed coatings that reduce the need for chemical inputs and help crops thrive in the face of different types of stressors. In 2019, we broadened our focus to include carbon programs and sustainable sourcing initiatives, aiming to build soil health and incentivize farmers to adopt and sustain beneficial practices while supporting companies on their own sustainability journeys.

Recognizing the limitations of existing carbon project methodologies, we created and publicly vetted our own, creating a pathway for high integrity ag soil carbon crediting at scale. With our sustainable sourcing programs we are targeting greenhouse gas reductions, water savings in rice programs, and promoting sustainable practices in crops like cotton where brands can highlight the use of sustainably grown cotton in their products. As these initiatives mature and align with evolving guidelines like the Greenhouse Gas Protocol Land Sector and Removals Guidance, we provide measurable climate benefits for companies’ sustainability reporting.

Additionally, we are expanding into the biofuels sector, leveraging our expertise in monitoring, reporting, and verification (MRV) and agronomy. Our scalable software platform integrates remote sensing with agronomic knowledge, enabling us to manage data validation, modelling, and project verification across diverse crops, practices, and climates. This technology-driven approach is crucial for overcoming past challenges in scaling agricultural carbon efforts while remaining adaptable to farmers’ needs.

cCarbon: What sets Indigo Ag’s carbon program apart from others in the market?

The agricultural carbon market has seen increased interest, but past efforts struggled with scalability and narrow, inflexible methodologies. Early initiatives like the Chicago Climate Exchange reached large scale, but quickly highlighted the flaws of poor methodologies, leading to a shift toward narrower, single-practice protocols that proved costly to implement and difficult to scale. This created frustration and confusion in the sector, with some programs moving away from the rigor of the established carbon market to try and just do their own thing.

At Indigo Ag, we took a different approach, emphasizing scientific rigor, technological innovation, and farmer practicality, while ensuring compliance with carbon registries and ISO standards. Our methodology has inspired others, and we’ve seen significant growth, with our U.S. soil carbon project reaching over 6 million acres. We’re also a global company, with biologicals business in Europe, South America, and India, and intent to expand our sustainability programs to those regions.

In addition to integrity and public trust, we believe providing farmers a choice and optionality is critical to scale sustainable agriculture. As farmers rotate the crops they grow in the same field, they deliver commodities into very different supply chains for food, feed, fuels, and fiber. Indigo Ag is the only company with a solution to allow farmers to monetize their sustainable practices in the fields across carbon crediting and insetting/Scope 3 claims, while maintaining highest integrity of the claims.

For carbon markets, while we’ve primarily focused on the Climate Action Reserve protocol in the U.S., we’re exploring projects with other registries like Verra. As the agricultural carbon market evolves, we remain committed to our science-first approach and technological innovation, enabling us to scale our impact and support farmers in adopting sustainable practices that benefit both their livelihoods and the planet.

Carbon Credit Generation, Ensuring Integrity and Addressing Risks

cCarbon: What is the typical range of carbon credits generated per acre in your soil carbon initiatives?

Max DuBuisson: Carbon credit generation varies by field, influenced by historical management, soil characteristics, practice changes and environmental conditions.

Over the first three reporting periods, we saw an average of 0.2 to 0.3 tons of carbon credits per acre per year. We expect this to increase with improved modelling techniques and additional model validation data. Furthermore, certain practices, like reduced tillage or no-till, may take several years to fully demonstrate their potential for soil carbon sequestration, and we’re now starting to reach that point with some fields.

cCarbon: Can you comment on additionality, co-benefits, permanence, and risk of reversibility in soil carbon projects?

Max DuBuisson: Agriculture provides significant benefits beyond carbon sequestration by supporting rural communities with more stable incomes and enhancing environmental health through practices like reduced tillage and cover cropping. These practices not only increase soil carbon but also stabilize soil, prevent erosion, improved water quality, and reduce chemical runoff, with additional benefits from decreased fertilizer use.

To ensure additionality, we require farmers to adopt new practices and conduct thorough assessments, including analyzing historical management data, social and cultural barriers, and common practices. The CAR Soil Enrichment Protocol includes standardized additionality assessments that we apply. This guarantees that the carbon credits generated truly reflect additional carbon sequestration.

For permanence, we mitigate the risk of reversals by actively managing agricultural land, using a buffer pool (holding around 14.5% of credits) to offset potential reversals, and spreading farmer payments over five years to incentivize continued participation. As soil health improves, farmers gain tangible agronomic benefits like increased water-holding capacity and resilience to extreme weather, motivating them to maintain practices even after the carbon project ends. We also monitor fields using satellite data to track practices and detect any potential reversals after program completion for a field.

Buyers and Price Trends

cCarbon: What is the typical price range buyers can expect for your carbon credits?

Max DuBuisson: We started selling our carbon credits in 2020 at $20 per ton, a relatively high price at the time. Unlike other carbon removal technologies that begin with high prices and promise future reductions, we are bringing buyers on the journey up to a price point that will be compelling for widespread adoption. With farmers getting 75% of the average price of credits sold, we want to be sure that they are rewarded for their efforts appropriately, recognizing the costs involved. We believe this requires $100+ credit pricing, considering the mix of practices and their time to impact. Thanks to the support of our buyers, we have been increasing the value for farmers over time, from the initial $20 per ton, to the current range of $60-$80+ per ton, depending on the time of delivery

cCarbon: Who are the typical buyers of Indigo Ag’s soil carbon credits, and what motivates them?

Max DuBuisson: We’ve primarily focused on direct sales but have also partnered with organizations like Cool Effect and Watershed to broaden our reach. Buyers are attracted to the compelling story of agriculture and soil carbon, as well as the quality of our credits. We emphasize transparency and invest time in educating buyers about the science behind our methodology.

In the agriculture and food sector, companies like Maple Leaf Foods, Blue Bottle Coffee, and various breweries appreciate the connection between soil carbon credits and their operations. While many are shifting toward scope 3 solutions and sustainable sourcing, they still see value in purchasing carbon credits.

Other buyers, including banks, service companies, and consulting firms like Boston Consulting Group, Shopify, JP Morgan, and Barclays, are motivated by the desire for high-quality carbon credits that align with their sustainability commitments.

Future Outlook

cCarbon: What major trends do you see for soil carbon in the future, and how is Indigo Ag preparing for them?

Max DuBuisson:

We see the growing focus on high-integrity carbon credits as essential for the market’s maturity and have actively contributed through initiatives like ICVCM working groups to enhance credit quality. Demand for our credits consistently exceeds supply, and as more companies commit to net-zero targets, we expect this demand to grow.

However, we recognize that the voluntary carbon market (VCM) isn’t the only path to sustainable agriculture. We also offer Scope 3 programs and sustainable sourcing initiatives to provide farmers with diverse economic opportunities, including carbon credits, biofuels, and sustainable supply chain participation. This flexibility is key to scale sustainable agriculture, as market priorities may shift over time.

While we see strong potential in the VCM, we’re ready to adapt to changing dynamics. We’re optimistic about the VCM’s future, despite its volatility, and are focused on building a resilient, adaptable model to support farmers in sustainable practices across various market conditions.