Agreement Agoro Carbon Issues First Soil Carbon Credits Under Microsoft Partnership
Agoro Carbon today announced the first issuance of carbon credits generated through its U.S. cropland and pastureland projects, marking a significant milestone in the company’s effort to convert regenerative agricultural practices into independently verified soil carbon removals.
The issuance represents an important step in Agoro Carbon’s growing role in the agricultural carbon market and includes the company’s first delivery of credits under its 12-year agreement with Microsoft to provide 2.6 million carbon removal credits. The agreement, announced in June 2025 after Agoro Carbon completed Microsoft’s carbon-removal due diligence process, represents one of the largest commitments to soil-based carbon removals in the market.
The newly issued credits cover the 2021 and 2022 vintages and were generated through projects focused on improving agricultural land management practices across U.S. farmland. The credits were issued following validation and verification through Verra’s process for two registered projects: VCS 3634, covering cropland, and VCS 3656, covering pastureland. Both projects operate under Verra’s VM0042 Improved Agricultural Land Management methodology, version 2.
Connecting Regenerative Agriculture With Carbon Removal
Agoro Carbon’s program is designed to encourage farmers and ranchers to adopt regenerative agricultural practices that can increase the amount of carbon stored in soils while supporting broader improvements in farm and ranch productivity.
Participating producers may implement practices such as cover cropping, reduced or no-tillage systems and improved grazing management. These approaches can contribute to soil carbon storage while also supporting soil health, water management and the long-term resilience of agricultural operations.
Agoro Carbon combines financial incentives with agronomic support to help producers make and maintain changes that are appropriate for their individual operations. The company’s approach also incorporates field-level measurement, scientific modeling and independent verification to quantify changes in soil carbon.
This model is intended to create a direct connection between corporate demand for carbon removals and farmers and ranchers who are implementing agricultural practices capable of storing additional carbon in their soils.
“At Agoro, we compete on integrity. Our quality-driven, farmer-focused approach is backed by rigorous science in how we design and monitor our projects, and by the hands-on support our agronomists provide to producers from initial implementation through sustained success,” said Elliot Formal, CEO of Agoro Carbon.
Formal added that the company’s projects are located on U.S. farmland and operate under long-term contracts with the producers who own the land. According to Agoro Carbon, this structure is intended to support durable agricultural carbon removal while providing participating producers with additional revenue.
Supporting Farmers Through the Transition
Agoro Carbon’s program currently spans 34 U.S. states and includes more than 600 enrolled producers farming or managing approximately 2.5 million acres.
The company plans annual credit issuances from its projects through 2037. While a portion of the supply is committed under the Microsoft agreement, Agoro Carbon said additional carbon removal credits will be available to other corporate buyers seeking agricultural-based solutions for their climate commitments.
Financial support is a central component of the company’s farmer engagement model. Agoro Carbon has provided more than $30 million in prepayments to farmers and ranchers to support their transition toward regenerative agricultural practices.
The company’s Grower Success Team remains involved throughout producers’ 10-year contracts. Agronomists work directly with participants to develop implementation plans, provide ongoing technical guidance and help ensure that selected practices are maintained over time.
Approximately one-third of Agoro Carbon’s employees work in grower-facing positions, according to the company. That staffing model reflects its emphasis on maintaining direct relationships with participating producers rather than relying solely on financial incentives to drive practice changes.
For farmers, the program can provide both carbon-related revenue and agronomic assistance as they adjust their production systems.
“Now 5 years in, our decision to partner with Agoro in making our transition to No-Till Agricultural practices is one of the best decisions we have ever made on our farm,” said Clint Myers of Latah, Washington.
Myers said Agoro Carbon’s agronomists, working alongside local agronomists, helped develop a transition plan that considered both the economic and agronomic aspects of the farm’s operation.
According to Myers, the farm has experienced improvements in soil health and returns per acre since adopting no-till practices. He also said the additional revenue from Agoro Carbon has helped the operation invest in technology while reducing input costs.
“We will continue to work with our Agoro agronomist to improve our cropping systems and keep building our soil health and hopefully in the future reduce our need for higher cost inputs,” Myers said.
Measuring Carbon From the Field Level
A central element of Agoro Carbon’s carbon removal program is its approach to measuring and quantifying changes in soil carbon.
The company combines physical soil sampling with process-based modeling and independent third-party validation and verification. Agoro Carbon said its measurement system is supported by one of the largest soil datasets in the United States.
More than 110,000 soil samples have been collected across enrolled acres. The samples are gathered through stratified, GPS-verified field sampling and analyzed by independent laboratories using dry combustion.
The resulting data are then used to calibrate peer-reviewed, process-based models that estimate changes in soil carbon across participating agricultural systems.
Agoro Carbon reported that its sampling program has achieved an average margin of error of 7.06% at 90% confidence, based on data from more than 500 growers. The company said this performance exceeds common industry benchmarks and provides a substantial evidence base for quantifying changes in soil carbon.
The combination of direct soil measurements, modeling and independent verification is intended to strengthen confidence in the carbon credits generated by the projects.
Verra Verification Supports First Issuance
The first credits were issued following Verra’s validation and verification procedures under the VM0042 Improved Agricultural Land Management methodology, version 2.
Verra CEO Mandy Rambharos described agricultural soils as an important potential carbon sink and highlighted the challenges involved in translating that potential into independently verified carbon removals.
“Agricultural soils are one of the largest and most underused carbon sinks we have, and turning that potential into credible, verified removals is hard work,” Rambharos said.
She added that the issuance demonstrates a data-driven process connecting soil sampling with verified carbon credits under the VM0042 methodology.
“This issuance reflects a rigorous, data-driven pathway from soil sample to verified credit under VM0042, and it’s a strong signal that U.S. agriculture can deliver high-integrity carbon removals at scale,” Rambharos said.
The verification is particularly significant for Agoro Carbon because the company is positioning its projects around measurable, durable soil carbon storage rather than relying solely on estimates of agricultural practice adoption.
Looking Toward the Next Methodology
Agoro Carbon also outlined plans to transition its projects to Verra’s VM0042 version 3 methodology once the updated methodology is published. The company expects the new version to be released in early 2027, although the timing remains subject to Verra’s publication schedule.
Agoro Carbon said the move is intended to support eligibility for the Core Carbon Principles framework for future issuances, subject to Verra’s timeline and assessment by the Integrity Council.
The transition would represent another step in the company’s effort to align its agricultural carbon projects with evolving standards for carbon market integrity and credit quality.
With its first soil carbon credits now issued and its initial delivery completed under the Microsoft agreement, Agoro Carbon is moving into a new phase of its program. The company expects to continue issuing credits from its U.S. agricultural projects through 2037 while expanding participation among farmers and ranchers.
The company’s model combines producer contracts, financial incentives, agronomic support, soil sampling, scientific modeling and independent verification. As demand for carbon removals continues to develop, Agoro Carbon’s first issuance provides a concrete example of how agricultural land management can be incorporated into structured carbon removal projects.
For participating producers, the program offers an additional revenue stream while supporting changes to farming and grazing systems. For corporate buyers, the credits provide access to a verified agricultural carbon removal pathway. Agoro Carbon’s continued focus on field-level data and producer engagement will remain central to how the company develops its projects and measures soil carbon storage in the years ahead.
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