Microsoft buys 2.6 million soil carbon removals generated from regenerative agriculture

Microsoft has signed a 12-year agreement to purchase 2.6 million soil carbon removal credits generated through regenerative agriculture practices.

The deal was signed with the Agoro Carbon Alliance, an organisation promoting the adoption of sustainable agriculture practices among farmers and helping them earn revenue from carbon finance.

The credits will be generated from Agoro Carbon’s US crop and rangeland projects, under Verra’s VM0042 Improved Agricultural Land Management methodology. These projects deploy regenerative agricultural practices such as cover cropping, improved grazing and reduced tillage to sequester carbon in the soil. 

Farmers in the programme earn new income from selling the soil-based carbon credits, while improving yields, input efficiency and resilience to weather events.

Demand for agriculture-based carbon removals

This is one of the largest soil-based carbon removals commitments to date, and could mark a turning point in the commercialisation of agriculture-driven climate solutions and the financing of sustainable farming – which is still facing systemic obstacles.

“Agoro Carbon’s approach to soil-based carbon removals reflects the kind of scientific rigor and long-term solution we look for in our carbon removal portfolio,” said Brian Marrs, Senior Director of Energy Markets at Microsoft. “This agreement supports our broader sustainability goals at Microsoft, including support of scalable, agriculture-based climate solutions that deliver measurable impact over time.”

'Farmer-focused approach'

According to the latest State of the Voluntary Carbon Market report produced by Ecosystem Marketplace, agriculture-based carbon credits are still the smallest category in terms of credit issuances and retirements, but retirement volume grew by 60% over the last year. “Buyers are retiring credits from forestry and land use and agriculture projects faster than project developers can issue them, and at an accelerating pace,” the report notes.

“This agreement with Microsoft is the strongest endorsement of our quality-driven, farmer-focused approach to soil carbon sequestration,” added Elliot Formal, CEO of Agoro Carbon. “We’re working with farmers and ranchers – offering hands-on support from our agronomists to ensure they achieve meaningful, long-term outcomes. From initial implementation to sustained success, we’re committed to helping producers build resilient operations for the future.”