Farmers Get Paid for Soil Carbon, How Does the New System Work?

More than 2,500 farmers in Punjab and Haryana are receiving over ₹2.9 crore in digital payments after adopting farming practices linked to verified soil-carbon gains. The first payments under the Aadi programme were initiated at Punjab Agricultural University in Ludhiana on September 17, 2026.

The programme, run by Grow Indigo with technical guidance from ICAR, links farm practices with carbon credits. Participating farmers used direct-seeded rice, reduced tillage and improved crop-residue management between 2019 and 2022. Their greenhouse-gas reductions and soil-carbon gains were measured and independently verified before credits were issued.

The first payment round covers 2,550 farmers, with individual payments reported at about ₹3,000 to ₹15,000. The first carbon-credit issuance covered around 30,000 acres and more than 50,000 credits. Farmers received payments based on the share of credits generated from their enrolled fields.

What farming practices generated these payments?

Direct-seeded rice replaces conventional transplanting by sowing rice directly into the field. The practice can reduce irrigation requirements compared with transplanted rice, while avoiding some operations involved in raising seedlings, puddling fields and moving seedlings into standing water.

Reduced tillage means farmers disturb the soil less than under conventional intensive tillage. Crop-residue management can also keep plant material on or within fields rather than burning it. The Aadi programme measured these practices as part of its assessment of greenhouse-gas reductions and changes in soil carbon.

The programme did not simply pay farmers because they adopted these practices. Carbon outcomes were measured and independently verified before credits were issued. This distinction matters because carbon payments depend on documented environmental results rather than only a farmer’s claim about changing cultivation methods.

Grow Indigo said the programme’s first issuance followed the Verra VM0042 methodology for improved agricultural land management. The company had earlier said the Aadi project was approved under the voluntary carbon standard, creating a framework for measuring and issuing agricultural soil-carbon credits from participating farms.

The payment system connects the number of credits generated from enrolled fields with the farmer’s share of the proceeds. The first round transferred money digitally to 2,550 farmers, with reported individual payments ranging from roughly ₹3,000 to ₹15,000.

Grow Indigo released the payments from its own funds before the carbon credits were fully sold. Farmers could choose between an assured upfront payment and receiving 75% of the net carbon revenue after the credits were sold, according to details reported after the first payment release.

This means carbon payments are different from a standard crop subsidy. The farmer is not receiving money simply for growing a particular crop or purchasing an input. The payment is linked to measured and verified carbon outcomes produced through specified farming practices.

The Aadi programme is larger than the first payment round. PIB said it covers more than two million acres and over 100,000 farmers across seven states. It has already issued agricultural carbon credits under the Verra VM0042 methodology.

What did farmers achieve beyond carbon credits?

According to the government, enrolled fields between 2019 and 2022 were estimated to save about 45 billion litres of water. More than two lakh tonnes of crop residue were also kept out of fires, with the programme estimating around 1,000 tonnes of PM2.5 emissions avoided.

These figures are programme-level estimates, not measurements for every individual farm. They reflect the combined results reported for participating fields. Farmers considering similar practices should assess their own water requirements, crop yields, residue-management costs and local conditions before changing cultivation methods.

ICAR institutions supported the programme’s scientific work. Their contributions included greenhouse-gas accounting, crop-simulation modelling, soil-sampling protocols, device validation, field-team training and the use of satellite and remote-sensing approaches.

The involvement of scientific institutions is important because soil-carbon gains are difficult to establish from visual observation alone. Soil samples, field measurements and agreed calculation methods are needed to determine whether changes can support the issuance of carbon credits.

Can every farmer earn from soil carbon?

Not automatically. Carbon-credit programmes require specific eligibility conditions, monitoring and verification. Farmers also need to be part of a programme that can measure results, issue credits and connect those credits with buyers or other sources of payment.

Farmers who joined Aadi after 2022 are part of a later monitoring cycle, according to programme information. Their payments are expected when the carbon credits associated with their enrolled fields are issued after the required assessment and verification process.

This makes carbon farming different from an immediate government benefit. A farmer may need to follow specified practices for several seasons, maintain records and allow field monitoring before any payment is confirmed.

Farmers should also check the terms of any private carbon programme before joining. They need to understand which practices are required, how carbon gains are calculated, who owns the credits, how payments are determined and when money will actually reach their accounts.

The September payment shows that carbon-linked farm income has moved from a project concept to actual payments for participating farmers. For now, the Aadi experience is specific to enrolled farms, verified practices and its carbon-credit framework. It does not mean every regenerative farmer automatically qualifies for payment.