Third-party data verification can increase profits from carbon programs

Many farmers understand the substantial data required to enroll in a carbon program. Programs are tracking everything including how and when crops are planted and routine soil sample results. However, how that data is used beyond the farm can be a little less clear. 

Most voluntary carbon programs get farmer data verified by a third party such as SCS Global Services. This gives the data more value and legitimizes carbon offsets sold by the programs. 

“Without verification, there’s not a lot of credibility, and the carbon space is new with a lot of different approaches,” says Kevin Warner, a director of environmental, social, and governance (ESG) certification and strategy at SCS Global Services. “In agriculture, there’s a lot more variability than in other nature-based carbon sequestration spaces such as planting trees. A tree is more permanent than a cover crop, so in agriculture, farmers need good data that’s validated or verified by an expert.”

Adding value

Greenwashing, a marketing tactic to make products and companies seem more environmentally conscious than they are, is also a concern in the carbon sphere. While each program has a different standard or methodology for data collection, verification through third parties allows carbon programs to substantiate carbon offsets, therefore making them more valuable and providing farmers with more profit. 

“For commodity growers, they are used to having a contract in place to sell to an elevator,” Warner says. “There’s very little information that transfers there. With these programs, there has to be a real benefit for the farmer in order to justify giving away that data. That being said, if that financial benefit is there for the growers, it’s worth that trade-off.” 

The relationship between third-party verifiers such as SCS Global Services and carbon programs varies among projects.

“We are often reviewing project design, planning documents, evidence of ownership, farm records, soil sample records, emission reduction calculations — all those types of records,” Warner says. “It’s all within the context of the verification so it doesn’t go beyond that when assessing farm operations.” 

Data concerns

The thought of handing sensitive farm data to an unknown third party can leave many farmers wary. Third parties should ensure farmer data remains safe and confidential through nondisclosure agreements, professional service agreements, and accreditation that requires routine audits. 

“Data privacy concerns are real, and with carbon markets being such a new space, there are a lot of start-ups in this industry that don’t necessarily have any track record,” Warner says. “That is a little concerning, especially with the heavy reliance on remote sensing. Farmers need a verifier they can trust. SCS isn’t the only company in that credible space, but it’s not a given that everyone is credible.”

Editor's note: The Context Network is a global agribusiness consulting firm that helps organizations achieve results through strategic management insights and a network of ag industry professionals, creating business solutions that deliver actionable outcomes. Learn more at contextnet.com.