Achieving climate-smart agriculture through carbon credits requires more than just changing farm practices; it demands a commitment to verifiable results. In a previous article, we explained what carbon credits are and how they are generated. In this article, we examine how different cropping and livestock systems can practically participate in carbon credit programmes and what this means for farm-level returns and resilience.
For farmers looking to participate in this market, the key is understanding the mechanics: how the carbon stored in the soil is measured, the long, often complex timeline for financial returns, and the mechanisms in place to protect against environmental risk.
Matthew Kensett, specialised agri-solutions and intelligence lead at UPL Africa, outlines the technical steps and financial realities of monetising soil health.
How is the carbon measured?
Soil carbon measurement is a cornerstone of agricultural carbon credits. “The most reliable tool to measure your carbon is your physical soil sample,” Kensett says.
Physical sampling, conducted every three to five years, may be complemented by modelling and remote sensing technologies.
“The measurement and modelling approach combined is the most economically viable,” he says.
While newer technologies such as soil sensors and imaging systems are emerging, Kensett stresses that physical sampling remains the industry standard for credibility.
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Why carbon credits matter?
For a carbon credit to be legitimate, it must represent real change.
Kensett explains that for a carbon credit to be credible, it must represent an activity that would not have occurred without the incentive of carbon finance. This principle is known as equally critical.
“The carbon we store in soils needs to be permanently stored there,” he says.
Kensett frames credits as a transition tool. “A carbon credit is the incentive for a farmer to change their practice.”
Revenue from selling credits helps offset the costs of adopting regenerative practices. “That income can help supplement the purchase of cover crops or any costs they might incur to change their practices.”
When do farmers see financial returns?
Carbon finance is not immediate and requires patience. Typically, farmers only begin to see financial benefits after three to five years, as the process requires independent audits, verification and formal issuance of credits by VERA before they can be sold.
“That audit process can take anywhere from a year to two years. It’s an incredibly rigorous process,” Kensett says.
“It is my hope that that time frame will get shorter for all,” he notes.
Carbon credits are not a quick fix, but they represent a growing opportunity for farmers willing to invest in soil health, data transparency and long-term sustainability. As markets mature and verification systems improve, carbon finance could become an increasingly important pillar supporting resilient, regenerative farming systems across South Africa.
Kensett says while carbon credit programmes are still relatively new, early pilots have already demonstrated that the system can work for committed farmers.
He explains that UPL deliberately chose a cautious, evidence-based approach before rolling out its Smart Climate Ag programme at scale. “We saw real improvements in the amount of carbon [our farmers] were able to sequester in soils. In some cases, farmers were able to optimise their fertiliser applications and reduce the costs associated with that by 50%.”
While credits from the pilot have already been issued, Kensett stresses that price negotiations with buyers are ongoing.
“That process takes a bit longer because buyers are also making sure that they are purchasing reputable credits and that they can trust the credits we’ve generated.”
Making the process simple for farmers
A key principle of the approach is to remove complexity from the farmer’s side. Farmers do not need to understand the technical details of carbon credits; instead, they are supported to focus on what they do best, farming and adopting improved practices.
Kensett explains that in their case, UPL provides technical guidance, combining chemical and biological solutions to ensure yields are protected while environmental outcomes improve.
“That’s quite important to us, to give farmers advice on what really works to maintain yields and improve the environmental outcomes,” he says.
Which farming systems can benefit most?
Certain systems currently offer higher potential for carbon credit generation. “At this stage, the highest potential is row cropping systems like your maize and soybeans.”
Livestock systems also offer significant potential, especially when managed effectively, as grasslands and pastures can store substantial amounts of organic carbon in the soil. The greatest opportunities, however, are found in integrated farming systems.
“The best potential is a farmer who can integrate livestock into their row cropping system,” Kensett says.
What happens if things go wrong?
According to Kensett, carbon credit programmes are designed to account for environmental uncertainties, such as events that could result in the loss of stored carbon, known as carbon reversals. To manage this risk, standards incorporate buffer mechanisms, where a portion of carbon credits is set aside in a buffer account.
Kensett likens this to insurance: “You can think of this as insuring against non-permanence risk.”
This ensures buyers receive credible credits, even in the event of unforeseen circumstances.
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