Carbon Intensity FAQ
Frequently Asked Questions
Questions about Carbon Intensity
Here are some of the frequently asked questions we have been receiving from growers, farmers, dealers and customers across the country… and we wanted to make sure we share this information with you!
Carbon Intensity (CI) 101
Will Carbon Intensity become a standard measurement?
We foresee the Carbon Intensity (CI) concept becoming a standard in all industries. Our ongoing efforts aim to establish our program as the most accurate and efficient in this regard.
How does a CI Score differ from existing carbon credit programs?
Unlike separate voluntary and commodity markets, Carbon Intensity integrates with the supply chain, allowing the tracking of the product’s carbon footprint from production to consumers. Rather than selling carbon credits and grain separately, CI efforts keep the data and the bushels bundled.
What role does the CO2 pipeline play in Carbon Intensity?
Installing a CO2 pipeline can reduce the Carbon Intensity Score by approximately 30 points. Pipelines are one solution in the broader decarbonization category of Carbon Capture Utilization & Storage (CCUS).
What is Carbon Intensity (CI)?
Carbon Intensity is Continuum Ag’s Suite of Services helping farmers quantify and monetize their data. These services include CI Scores and CI Certification.
What does Carbon Intensity refer to, and what does a CI Score signify?
Carbon Intensity is Continuum Ag’s suite of services designed to help farmers quantify and monetize their data. This includes measuring the carbon footprint associated with producing agricultural products, such as a bushel of grain.
A Carbon Intensity Score is the specific measurement used to assess this impact, reflecting the total carbon emissions involved in production. The score provides a concrete number to gauge the effectiveness of practices aimed at reducing carbon emissions.
Why is Carbon Intensity important?
As farmers, we are part of the carbon footprint of the biofuel company or whoever we’re selling our grain to. Biofuel companies are positioned to profit from lowering their Carbon Intensity Score via emerging tax credits. Quantifying low-carbon grain from field to tank is a collaborative endeavor that is here to stay.
What is MMRV?
MMRV stands for measurement, monitoring, reporting, and verification. The TopSoil software facilitates these initiatives.
What is the GREET Model?
The Greenhouse gasses, Regulatory Emissions, and Energy use in Technologies Model was created by the Department of Energy at the Argonne National Lab. First launched in the mid 1990s, this tool is the gold standard and has been chosen by the IRS (Internal Revenue Service) for measuring Carbon Intensity Scores.
Carbon Intensity (CI) Score
What is a County Default CI Score?
According to the Argonne GREET Feedstock Calculator, each United States County has a given default CI Score for crop production. Typically the CI Score ranges 28-30.
How does TopSoil adjust when there are updates to the GREET model?
Our system is directly linked to the GREET model and automatically updates when there are changes. Users with existing CI Scores will be notified of how these updates may affect their scores.
Why would a CI Score matter if you are not selling crops to biofuel?
In the future, we anticipate CI Scores becoming integral to all industries and markets. Staying ahead of these programs is crucial for gaining a competitive advantage.
How would optimizing nutrients impact a CI Score?
Optimizing nutrients would lower the CI Score. The energy associated with fertilizers, fuel, and other inputs contributes to the CI Score, so reducing these inputs results in a lower overall score.
How do biological carbon scores fit into Carbon Intensity Scores?
Currently, these two scores don’t have a direct relationship impacting overall scores. However, maintaining healthy soil can reduce the need for fertilizers, improving yield and subsequently lowering the CI Score.
Will farmers receive compensation based on the difference between their CI Score and the Average CI Score?
We anticipate that farmers will be paid based on how much lower their score is compared to the default score for their county.
What is the cost of obtaining a personalized CI Score?
The cost is FREE and you can start by creating a Farm Profile on TopSoil.Ag.
Where did the Default CI Score of 29.1 come from?
29.1 comes from the Argonne National Lab’s Default Score for Champaign County, Illinois (Default County of Feedstock Calculator). At Continuum Ag we’ve chosen this number for simplicity purposes.
Why is a collaboration between farmers and biofuel producers crucial for lowering CI Scores?
Biofuel companies rely on low-carbon crops from farmers as one method to earn credits, while farmers depend on these credits to monetize their scores. The collaboration between the two is essential, as they complement each other in achieving their respective goals.
What are the average CI Scores for petroleum gasoline and corn-based ethanol?
Petroleum gasoline has a score of nearly 100, while ethanol has a score most often in the mid-50s.
Is it advisable to delay obtaining my CI Score?
No, it’s not necessary to wait. The GREET model undergoes occasional minimal changes, and since TopSoil utilizes the actual GREET model, any updates can be readily incorporated. Your CI Score, if purchased today, will automatically be updated in your TopSoil account whenever necessary.
What is the average Carbon Intensity (CI) Score for a midwestern farmer?
Through our pursuit of scoring 1 billion bushels, we have found the average CI Score of approximately 11. To see our most up-to-date statistics, visit our Billion Bushel page on our website.
How can I figure out my CI Score?
Getting started is easy with our dealer network and consultants available to assist you. Visit TopSoil.ag to begin the process.
What is Carbon Intensity? And what is a Carbon Intensity Score?
Carbon Intensity is Continuum Ag’s Suite of Services designed to help farmers quantify and monetize their data. This includes measuring the carbon footprint associated with producing agricultural products, such as a bushel of grain.
A Carbon Intensity Score is the specific measurement used to assess this impact, reflecting the total carbon emissions involved in production. The score provides a concrete number to gauge the effectiveness of practices aimed at reducing carbon emissions.
How can I determine the value of my CI Score?
The value will be subject to producer-specific factors. We estimate that each point lowered is worth approximately $0.054 (or 5.4 cents) per bushel. A free profile on TopSoil.ag provides access to the CI calculator for precise calculations.
What is considered a good CI Score?
You want your Carbon Intensity (CI) Score to be as low as possible, with the goal of staying below your county default. Ultimately a score of 0 signifies Carbon Neutrality while a negative score signifies Carbon Negative production.
Why should you know your CI Score?
Knowing your score and verifying your practices is critical to capitalize on 45Z tax credits. Data will be paramount and the IRS has already released guidance in regards to verification. We are bullish on the long-term concept and see other emerging programs on the horizon.
The High-Demand for Low CI Grain
Are big food companies willing to pay more for low-carbon crops?
The signals suggest yes. Across various industries, manufacturers are actively seeking to reduce their carbon footprints by utilizing low-carbon materials, including crops with low CI Scores.
How do you monetize low-carbon grain?
While there is a market for low-carbon grain, specific monetary values are pending IRS rules and regulations.
How do you get paid for low-carbon crops?
Biofuel companies appear willing to pay more for crops with low-carbon scores as they strive to achieve low-carbon score goals for tax credits.
Can all farmers benefit from low-carbon crops?
The primary short-term opportunity revolves around biofuels and we highly recommend farmers in the supply chains participate in CI Certification. Non-biofuel supply chain farmers will likely have opportunities to monetize their environmental impact as more efforts mature.
What makes low-carbon grains particularly exciting?
Low-carbon grains are crucial in various supply chains, including those for fuel and food. Many companies aim for low-carbon footprint goals, driving the demand for low-carbon crops from farms.
Why should farmers team up to achieve a low CI Score for their grain?
Biofuel manufacturers will quantify their CI Score in regards to a weighted average CI Score of all the grain they purchase. In order to lower the weighted average, a significant volume of low-carbon grain will be required.
45Z & 40B Tax Credits
What is 40B?
40B is a Sustainable Aviation Fuel (SAF) producer tax credit. The credit is for tax years 2023 and 2024.
What is 45Z?
45Z is the Clean Fuel Production Tax Credit as created by the Inflation Reduction Act of 2022. The tax credit rewards low CI Scores for producers of transportation biofuel (ethanol, biodiesel, renewable diesel, and SAF (Sustainable Aviation Fuel)). The tax credit is currently in play for tax years 2025-2027.
What is the value associated with 45Z?
Biofuel manufacturers can earn $0.02 per gallon of production for each CI point reduced below a baseline CI score of 50. For SAF producers, this value could be $0.035 per gallon.
Why should farmers care about 45Z?
45Z enables, for the first time, biofuel companies to leverage scope 3 reductions to decrease their Carbon Intensity Score. This means farmers could be financially compensated for participating in regenerative ag practices.
What advantages do biofuel companies gain from the 45Z tax credits?
The 45Z tax credits can be used by biofuel producers to offset tax liability or can be sold to the secondary market for cash.
Who developed Section 45Z Tax Credits?
45Z is a federal tax credit designed for low-carbon transportation biofuel. To qualify, manufacturers must maintain a Carbon Intensity Score below 50, and each point reduction earns an additional $0.02.
If the 45Z tax credit is going to the ethanol plants, how do farmers get paid?
In order to create the tax credits, biofuel producers will need verified low-carbon grain. The data associated with the grain is therefore valuable and will likely be monetized as the producers seek to capitalize on the tax credits.
What advantages do biofuel companies gain from the 45Z tax credits?
The 45Z tax credits, disclosed by the IRS, allow biofuel companies to offset prior year taxes, utilizing excess credits for amended returns and future offsets.
What is a CSA verified farm?
When the IRS published the 40B rules, they disclosed an initiative called the Climate Smart Agriculture pilot program. Corn farmers using no-till, cover crops and enhanced efficiency fertilizers could qualify and be verified as “Climate Smart.” Soybean producers using no-till and cover crops could also qualify. This concept is only in regards to 40B.
Data Ownership
To get the most out of your efforts to lower the Carbon Intensity (CI) score for your crops, it’s helpful to understand how the data is collected and used to generate a CI Score. The following FAQ covers many takeaways farmers should consider when certifying their crop.
How can I be sure I own my own crop data?
Before you provide data or allow someone else to access your data, read the fine print, starting with a Privacy Statement. Ideally, a privacy statement should confirm that you retain ownership of all data and that the company, platform, or other third party has no rights or privileges associated with that data whatsoever. If that clause does not exist in contracts or other agreements, your data could be at risk.
Also look carefully for data release terms and/or insist upon individual data release documentation when you want to provide crop data or CI Scores to someone outside your farm operation. Individually signed releases ensure that only the people or companies you have authorized to see or use your data are allowed to do so.
In Continuum Ag’s contracts, the farmer owns their own data. Continuum does not have the right to monetize your data in any way.
Why should farmers pay to certify their CI Scores? Shouldn’t the end-user pay?
Farmers can choose whether or not to certify CI Scores themselves, or let an end-user do it.
The biggest difference is that whoever pays to collect, analyze, and certify farm data is who typically ends up owning that data or at least having significant rights over it. Farmers who want to be able to shop their data to other possible end-users and buyers must own their data – and that means paying for certification themselves.
The biggest advantage to certifying your own crop is the flexibility to choose your program and become a price maker as opposed to a price taker. Programs that pay for the certification on your behalf require farmers to agree to their prices and terms. By certifying your own crop you have the power to take your crop to any buyer who has the best offer.
Do CI Scores require soil samples?
No. The GREET model only accounts for agronomic practices and does not require soil samples to compute a score.
Scoring and management platforms like TopSoil® automatically compute scores based on inputs provided by farmers regarding fertilizer, cover crops, yield, and a variety of other data points. The score is calculated in accordance with GREET model methodology in order to provide a score that conforms with GREET and government guidelines.
Why do CI Scores need to be certified?
Utmost rigor should be considered when quantifying Carbon Intensity Scores, verifying claims, and creating tax credits. The 45Z tax credit is regulated by the IRS and they have prescribed rigorous verification standards for similar tax credits. By verifying on-farm CI Scores, risk is reduced, fraud is avoided, and additional value share can occur as a more transparent and legitimate market is created.
Who is behind the CI Score?
In order to ensure a level playing field for all involved, government-backed programs have adopted the U.S. Department of Energy’s GREET model.
GREET stands for Greenhouse gases, Regulated Emissions, and Energy use in Technologies, and it considers a wide range of energy sources, emissions, and environmental impacts in evaluating carbon scoring. Some of these variables include, but are not limited to:
- Total energy consumption (non-renewable and renewable)
- Fossil fuel energy use (petroleum, natural gas, coal)
- Greenhouse gas emissions
- Air pollutant emissions
- Water consumption
Why should I care about my CI Score?
There are a number of tax credits and other incentive programs associated with products and services that reduce greenhouse gas production as opposed to traditional methods. These include energy (particularly biofuels), food and beverage, and commercial and industrial farming (both crops and livestock).
Farmers with low CI Scores can financially benefit by selling their low CI grain to buyers willing to pay a premium. For example, the biofuel industry has a direct incentive to buy low CI grain in order to lower their own carbon footprint and collect a tax credit from the IRS.
What is a CI Score anyway?
A CI Score is generated using the federally approved GREET model. For example, the estimated standard CI Score for corn is 29.1 kg CO2E/mmBtu of ethanol energy. The lower the CI Score, the more attractive that production is for end users.
For example: the CI Score of 0.0 means the bushel is net carbon neutral. Premium payments for lower carbon grains encourage growers to implement practices that lower carbon emissions and ultimately result in lower CI Scores.