Dublin, Feb. 07, 2025 (GLOBE NEWSWIRE) — The “Carbon Farming Market – A Global and Regional Analysis: Focus on Application, Product, Carbon Credit and Debit, Opportunities for Agricultural Stake Holders and Country – Analysis and Forecast, 2024-2034” report has been added to ResearchAndMarkets.com’s offering.
The carbon farming market is projected to reach $2.34 billion by 2034 from $531.8 million in 2024, growing at a CAGR of 15.98% during the forecast period 2024-2034.
Carbon farming has been gaining momentum as a key approach to addressing climate change while supporting sustainable agricultural practices. This growth is fueled by the increasing demand for carbon credits, heightened awareness of climate-friendly farming methods, and advancements in soil health monitoring technologies.
Key drivers include rising government support through subsidies and incentives, growing corporate commitments to net-zero emissions, and adopting regenerative farming techniques such as cover cropping, agroforestry, and reduced tillage. The market strongly focuses on innovation and partnerships, emphasizing the dual benefits of improving farm productivity and sequestering atmospheric carbon to combat global warming.
Industrial Impact
Carbon farming has emerged as a transformative solution with significant industrial impacts, particularly in sectors aiming to reduce carbon footprints. By enabling the capture and storage of atmospheric carbon in soils and vegetation, carbon farming supports industries such as food and beverage, textiles, and bioenergy in meeting sustainability targets.
The European Parliament’s approval of the first-ever EU-wide carbon removal certification scheme in April 2024 provides a strong regulatory foundation for scaling carbon farming initiatives. This framework certifies various carbon removal methods, including soil management and forest restoration, ensuring adherence to robust monitoring, quantification, and sustainability standards.
The initiative incentivizes large-scale carbon removal projects, aligning with the EU’s climate objectives under the Paris Agreement. Such developments enhance agricultural supply chain resilience, improve industry reputations, and align businesses with evolving consumer preferences for eco-friendly products, solidifying carbon farming as a key driver of sustainable industrial practices.
Market Segmentation
Agriculture to Lead the Market (by Application)
- Agriculture is the leading application segment in the carbon farming market, driven by its vast potential to sequester carbon through practices such as no-till farming, cover cropping, crop rotation, and optimized fertilizer use. With a large portion of global arable land suitable for these methods, agriculture offers a scalable and impactful solution for carbon removal.
- In September 2022, the U.S. Department of Agriculture (USDA) expanded its Climate-Smart Commodities program, allocating $2.8 billion to support farmers adopting climate-friendly practices, including carbon sequestration methods. Farmers have been increasingly adopting carbon farming techniques to reduce greenhouse gas emissions, improve soil health, and boost crop yields.
- This dual benefit, combined with growing incentives such as carbon credit programs and government subsidies, positions agriculture as the dominant contributor to the market. Moreover, the integration of advanced technologies such as satellite monitoring and precision farming tools further enhances the effectiveness and adoption of carbon farming in the agricultural sector.
Carbon Management Software to Lead the Market (by Product Type)
- Carbon management software is the leading product segment in the carbon farming market, driving its growth with advanced capabilities that streamline carbon tracking, reporting, and trading. This software enables farmers and businesses to monitor carbon sequestration efforts, calculate emissions reductions, and manage carbon credits with precision. Its integration with other digital tools, such as satellite imagery and IoT sensors, enhances accuracy and decision-making.
- The demand for carbon management software is further fueled by increasing corporate commitments to net-zero goals and the need for transparent reporting to meet regulatory and market standards. As more organizations adopt carbon farming practices, the software role in optimizing processes and ensuring compliance positions it as a critical enabler of sustainability and profitability in the industry.
North America Region to Lead the Market (by Region)
- North America is the leading region in the carbon farming market, driven by strong government support, innovative farming practices, and a well-established carbon credit trading ecosystem. The U.S. and Canada have introduced several policies and incentive programs to promote sustainable agriculture, including grants and subsidies for soil carbon sequestration projects.
- Additionally, the region benefits from advanced technologies, such as precision agriculture tools and satellite-based carbon measurement systems, which enhance the efficiency and credibility of carbon farming practices. A growing demand for carbon offsets from industries aiming to achieve net-zero emissions further boosts market growth. With an increasing focus on sustainable supply chains and environmental responsibility, North America sets the benchmark for carbon farming adoption, paving the way for other regions to follow.
Recent developments in the carbon farming market:
- In September 2024, Bayer launched its ForwardFarm initiative in India, introducing carbon farming practices such as soil carbon capture and vermicompost application to enhance soil health and combat climate change. This effort, tailored for smallholder farmers, integrates innovative technologies to promote sustainable and climate-resilient agriculture.
- In September 2024, Soil Capital raised $16.2M in Series B funding, led by Trill Impact Ventures, to scale its regenerative agriculture initiatives and expand its reach to new regions. The funding supports the enhancement of sustainability indicators such as GHG emissions, soil health, and biodiversity while enabling over 1,600 farmers in Europe to adopt carbon farming practices.
- In May 2023, GrowUp Farms became the first vertical farm to partner with the Wilder Carbon Standard for Nature and Climate as an Approved Buyer. The partnership supports the Kent Heather Corrie Vale wilding project, contributing to carbon removal and biodiversity enhancement on a former golf course.
Market Drivers, Challenge, and Opportunities
Market Drivers
The growing focus on climate change mitigation is a key driver for the carbon farming market, as agriculture accounts for 11% of global greenhouse gas emissions (as of 2023). Ambitious climate goals, such as the EU’s target to cut emissions by 55% by 2030 and achieve net zero by 2050, encourage cover cropping, no-till farming, and agroforestry practices. Similar commitments from countries such as the U.S., China, and Canada, combined with government incentives and carbon credit opportunities, have been driving the adoption of carbon farming while providing both environmental and economic benefits to farmers.
Market Restraints
The carbon farming market faces significant challenges due to inconsistent and highly variable carbon credit prices, which complicate farmers’ ability to adopt sustainable practices. Prices can range dramatically based on factors such as the region, type of project, carbon standards, and whether the market is voluntary or regulated, creating uncertainty around the return on investment for farmers. Without stable and predictable carbon pricing, many farmers are hesitant to transition to carbon farming, highlighting the need for standardized pricing structures and stronger regulatory frameworks to encourage widespread adoption.
Market Opportunities
Carbon farming presents a significant market opportunity for research institutes to drive innovation in sustainable agriculture. Developing advanced tools such as soil sensors, AI-based analytics, and remote sensing can help farmers monitor carbon levels, optimize inputs, and earn carbon credits. Additionally, advancing regenerative practices such as agroforestry, cover cropping, and biochar application can improve carbon sequestration, soil health, and biodiversity, while partnerships with governments and agribusinesses can ensure practical, cost-effective solutions and reliable carbon measurement standards.
Key Market Players and Competition Synopsis
Some of the prominent names in this market are:
- Nori
- Soil Capital
- Terramera
- AgriWebb
- Regrow
- LI-COR
- SourceTrace
- Boomitra
- Cultyvate
- AgroCares
- CarbonFarm
- SpaceNus Technologies
- Agreena
- Kheti Buddy
- AgriProve
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 124 |
| Forecast Period | 2024 – 2034 |
| Estimated Market Value (USD) in 2024 | $531.8 Million |
| Forecasted Market Value (USD) by 2034 | $2340 Million |
| Compound Annual Growth Rate | 15.9% |
| Regions Covered | Global |
Key Topics Covered:
1 Markets
1.1 Trends: Overview
1.1.1 Rising IoT and Smart Agriculture Devices Revolutionizing Carbon Farming
1.1.2 Government Subsidies and Incentives Driving the Growth of Carbon Farming
1.2 Supply Chain Overview
1.3 Research and Development Review
1.4 Regulatory Landscape
1.5 Opportunities for Agriculture Stakeholders
1.5.1 Farmers
1.5.1.1 Revenue Generation through Carbon Credits
1.5.1.2 Sustainable Farming Practice
1.5.2 Agribusiness
1.5.2.1 Product Diversification
1.5.2.2 Enhanced Corporate Responsibility
1.5.3 Policy Makers
1.5.3.1 Supportive Policies and Incentives
1.5.3.2 Collaboration with International Bodies
1.5.4 Research Institutes
1.5.4.1 Innovation in Carbon Farming Management Technique
1.5.4.2 Development of Verification Tool
1.6 Market Dynamics: Overview
1.6.1 Market Drivers
1.6.1.1 Increased Focus on Climate Change Mitigation
1.6.1.2 Global Agriculture Emissions 1990-2017
1.6.1.3 Growing Carbon Credit Markets
1.6.2 Market Restraints
1.6.2.1 Inconsistent Carbon Pricing
1.6.2.2 Insufficient Institutional and Technical Infrastructure for Carbon Farming
1.7 Overview of Global Carbon Credit Market for Agriculture Forestry and Land Use, 2022-2033
2 Application
2.1 Application Segmentation
2.2 Application Summary
2.3 Carbon Farming Market (by Application)
2.3.1 Agriculture
2.3.1.1 Soil Management
2.3.1.2 Crop Management
2.3.1.3 Livestock Management
2.3.2 Forestry and Land Use
3 Products
3.1 Product Segmentation
3.2 Product Summary
3.3 Carbon Farming Market (by Technology)
3.3.1 Carbon Measurement and Monitoring Tools
3.3.1.1 Sensor and IoT Devices
3.3.1.2 Satellite Imagery and Remote Sensing
3.3.2 Carbon Management Software
4 Regions
4.1 Regional Summary
4.2 North America
4.3 Europe
4.4 Asia-Pacific
4.5 Rest-of-the-World
5 Markets – Competitive Benchmarking & Company Profiles
5.1 Next Frontiers
5.2 Geographic Assessment
5.3 Competitive Benchmarking
5.4 Company Profiles
- Nori
- Soil Capital
- Terramera
- AgriWebb
- Regrow
- LI-COR
- SourceTrace
- Boomitra
- Cultyvate
- AgroCares
- CarbonFarm
- SpaceNus Technologies
- Agreena
- Kheti Buddy
- AgriProve
For more information about this report visit https://www.researchandmarkets.com/r/mflzec
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