Carbon Farming Market Forecasts to 2032 - Global Analysis By Practice Type, Carbon Credit Type, Service Type, Revenue Model, Technology, End User and By Geography

According to Stratistics MRC, the Global Carbon Farming Market is accounted for $616.3 million in 2025 and is expected to reach $1731.4 million by 2032 growing at a CAGR of 15.9% during the forecast period. Carbon farming is a suite of regenerative agricultural practices designed to enhance carbon sequestration in soil, vegetation, and biomass. By optimizing land management such as cover cropping, agroforestry, rotational grazing, and reduced tillage these methods increase soil organic matter and reduce greenhouse gas emissions. The goal is to create a net carbon sink, improving soil health, biodiversity, and climate resilience. Carbon farming supports sustainable food systems while contributing to climate mitigation through verified carbon offset programs and ecosystem service enhancement

Market Dynamics:

Driver:

Increasing corporate net-zero and sustainability goals

Businesses across sectors are integrating nature-based solutions like soil carbon sequestration and afforestation into their decarbonization strategies. This shift is driven by mounting investor pressure, regulatory incentives, and reputational benefits tied to climate-positive operations. As carbon accounting frameworks mature, companies are increasingly investing in verified agricultural offsets to meet Scope 3 reduction targets. The demand for high-integrity carbon credits sourced from regenerative farming practices is expected to surge, reinforcing the market's growth trajectory.

Restraint:

Lack of standardization and market fragmentation

Variability in measurement techniques ranging from remote sensing to soil sampling creates uncertainty in credit valuation and permanence. The absence of unified standards across registries and geographies complicates credit comparability, limiting scalability. Smallholder farmers often struggle to navigate complex certification processes, further impeding participation. These inconsistencies hinder investor confidence and slow the adoption of carbon farming as a mainstream climate mitigation tool.

Opportunity:

Development of "carbon-plus" credits

Platforms are evolving to quantify and monetize these ancillary benefits, enabling premium pricing and broader market appeal. The integration of AI-driven monitoring and blockchain-based traceability is also boosting transparency, helping differentiate high-quality credits. These enhanced credits incorporate biodiversity restoration, water conservation, and soil health improvements, making them more attractive to buyers seeking holistic sustainability outcomes. As demand shifts toward multi-impact offsets, carbon-plus credits could redefine value propositions in voluntary carbon markets.

Threat:

Risk of non-permanence

Events such as wildfires, droughts, or land-use changes can negate years of carbon storage, undermining credit integrity. This non-permanence risk challenges the credibility of agricultural offsets, especially in regions with unstable climate conditions or weak land tenure protections. Buyers and regulators are increasingly scrutinizing permanence guarantees, prompting the need for robust buffer pools and long-term monitoring commitments. Without reliable safeguards, market trust may erode, affecting future investment flows.

Covid-19 Impact:

The COVID-19 pandemic had a nuanced impact on the carbon farming market. Initially, disruptions in agricultural supply chains and field operations delayed project implementation and verification activities. However, the crisis also accelerated interest in resilient, decentralized climate solutions. Governments and NGOs began promoting regenerative agriculture as part of green recovery packages, boosting awareness and funding. Remote sensing technologies gained traction as alternatives to in-person audits, enabling continuity in credit issuance.

The conservation tillage & no-till farming segment is expected to be the largest during the forecast period

The conservation tillage & no-till farming segment is expected to account for the largest market share during the forecast period as these techniques minimize soil disturbance, enhancing organic carbon retention and reducing erosion. Their scalability across diverse agro-climatic zones makes them a preferred choice for large-scale carbon sequestration initiatives. Moreover, they offer operational benefits such as reduced fuel consumption and improved crop resilience, aligning with both environmental and economic goals thus their adoption is expected to expand significantly.

The livestock methane reduction credits segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the livestock methane reduction credits segment is predicted to witness the highest growth rate owing to innovations such as feed additives, anaerobic digesters, and manure management systems are enabling measurable reductions in enteric and waste-related methane emissions. These technologies are gaining traction due to their dual impact-lowering greenhouse gases while improving farm productivity. With methane having a significantly higher global warming potential than CO2, credits derived from livestock interventions are attracting premium buyers.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share driven by robust policy frameworks and corporate climate commitments. The region benefits from advanced agricultural infrastructure, widespread adoption of precision farming, and strong participation in voluntary carbon markets. U.S.-based initiatives such as the USDA's Climate-Smart Commodities program and California's cap-and-trade system are catalyzing project development.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR fueled by expanding agricultural economies and rising climate awareness. Countries like India, China, and Indonesia are investing in regenerative farming to combat soil degradation and enhance food security. Government-backed carbon credit schemes and international climate finance are unlocking new opportunities for smallholder participation. The region's vast land availability and diverse ecosystems offer significant potential for scalable carbon sequestration.

Key players in the market

Some of the key players in Carbon Farming Market include Indigo Ag, Nori, Regrow Ag, Carbon America, Carbon Streaming Corporation, DevvStream, AgriProve, Soil Capital, Terramera, Carbonfuture, Agreena, CIBO Technologies, EKI Energy Services, Locus Agricultural Solutions, Climate Impact X, The Climate Trust, Perennial, and Corteva Agriscience.

Key Developments:

In August 2025, CIBO Technologies Alongside launching a refreshed website, CIBO reflected on its recent milestones: selection for the USDA-Virginia Tech grant, recognition in AgTech rankings, and progress in scaling regenerative/agricultural practices. All part of CIBO's push to make regenerative agriculture more accessible and measurable.

In May 2025, Microsoft agrees to purchase 60,000 soil carbon credits from Indigo's fourth 'carbon crop' (issued April 2025 via the Climate Action Reserve), expanding its portfolio of high-quality carbon removals. The program channels significant private funding to support regenerative farming; 75% of carbon sales go directly to farmers, helping accelerate adoption of soil-carbon practices.

Practice Types Covered:

• Agroforestry
• Conservation Tillage & No-Till Farming
• Managed Grazing
• Crop Rotation & Diversification
• Cover Cropping
• Composting & Biochar
• Wetland & Peatland Restoration
• Other Practice Types

Carbon Credit Types Covered:

• Soil Carbon Credits
• Forestry Carbon Credits
• Livestock Methane Reduction Credits
• Biochar & Compost Credits
• Other Carbon Credit Types

Service Types Covered:

• Project Developers
• MRV (Measurement, Reporting & Verification) Providers
• Carbon Marketplaces & Brokers
• Carbon Accounting & Software Platforms
• Financial & Risk Products
• Other Service Types

Revenue Models Covered:

• Voluntary Carbon Projects
• Compliance Driven Projects
• Subscription / SaaS
• Pay-For-Performance & Outcome-Based Contracts
• Other Revenue Models

Technologies Covered:

• Sensor & IoT Devices
• Satellite Imagery & Remote Sensing
• Blockchain Technology
• Precision Agriculture
• Carbon Measurement & Monitoring Tools
• Other Technologies

End Users Covered:

• Farmers & Ranchers
• Corporations
• Government Agencies & Policy Makers
• Non-Profit Organizations
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

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• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances