Bucharest, Romania - November 27, 2019: View of Microsoft Romania headquarters in City Gate Towers situated in Free Press Square, in Bucharest, Romania.
Image credit: lcva2 / iStock

BRIEF: Microsoft to purchase up to $2m in carbon credits from Land O’Lakes

February 8, 2021

  • Truterra, a sustainability-focused subsidiary of US farmer cooperative Land O’Lakes, has agreed to sell carbon credits worth up to $2 million to tech giant Microsoft, which is aiming to become ‘carbon neutral’ by 2030.
  • The deal covers the equivalent of 100,000 metric tons of carbon sequestered by Land O’Lakes corn, cotton, soybean, and wheat farmers.
  • It’s the first sale announced under TruCarbon, the new carbon credits trading program launched by Truterra and the Soil Health Institute.

Why it matters:

Several agrifood sector players have launched carbon credits schemes in recent months, driven by increasingly eco-conscious end consumers and governments – as well as major companies keen to offset their own emissions.

Land O’Lakes claims TruCarbon is the first farmer-owned carbon credits scheme to enter the market.

“TruCarbon is providing farmers new opportunities to be recognized and rewarded for their stewardship, creating new revenue opportunities […] as they adopt soil health practices,” said Land O’Lakes CEO Beth Ford.

“It’s through innovative approaches such as TruCarbon that our [co-op] can help ensure that farmers’ businesses are profitable, our rural communities are resilient, and the land, air, and water are healthy for future generations.”

Beyond this particular deal — which is expected to pay out to participating growers later this year — Land O’Lakes farmers may be eligible for retroactive compensation based on soil health practices they adopted in past growing seasons.

The Minnesotan co-op announced a partnership with Microsoft last year to develop agtech innovations around supply chain logistics, sustainability, and rural internet connectivity.

Share on email
Share on twitter
Share on facebook
Share on linkedin
Share on reddit
Share on whatsapp
Share on skype

AgFunder Newsletters & Research

Get the latest news in your inbox. Weekly.

* indicates required

Follow us:

Advertisement
Advertisement
Join Newsletter