New Research Points to Ag Retail Challenges with Carbon Programs
September 20, 2021 Ag retail sits in a compelling place when it comes to participation in carbon sequestration programs. They are often involved in collecting and managing data. They most often have a unique trust bond with the farmer customer, and solid partnership arrangements with product manufacturers. They also help to curate and champion technologies and strategies in conjunction with the farmer.
So it’s critically important to the success of carbon initiatives that retailers are fully aware of existing and emerging programs, can see a clear path to their involvement, and understand how to bring farmer customers into the fold.
Our experience in doing article research and connecting with retailers through conferences and virtual events is that there is still a long way to go, and a recent study conducted by Axiom Marketing clearly confirms this notion. The study, conducted this summer, found that 70% of retailers do not understand how to verify carbon to participate in carbon markets. At this point in time, half of respondents questioned if they would ever participate.
- Related: Staying Grounded on Carbon Programs
About one in three respondents are actively participating in programs that monetize carbon, despite the fact that the majority of respondents surveyed manage their growers’ data and claim to promote sustainable activities, notes Craig Dick, Principal of Axiom Marketing.
Axiom’s survey also found that carbon credits may need to be higher to gain greater appeal, he adds. “We found that 65% of respondents think farmers will require more than $10 per acre,” adds Dick. “Additionally, 69% of retailers expect to be paid more then $5 per acre for carbon credit services. This research provides quantitative support that the current rates of $10-$15 per acre may not be enough to justify carbon negative practices.”
In the end, Dick says that “the research shows a lack of understanding from ag retailers on how to best participate in carbon markets. Further research is needed to better understand what information they need and what opportunities there are for ag retailers to help drive carbon sequestration.”
The full report from Axiom is available here.
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