Carbon Farming Market Size, Share, Growth, Trends, and Global Industry Analysis: By Solution Type (Practices & methodologies, monitoring and verification services, carbon credit generation platforms, Others), By Component (Services, software & digital tools, advisory & consulting, Others), By Deployment Model (On-field implementation programs, digital/remote-managed programs, Others), By End User (Farmers & landowners, agribusinesses, corporates & carbon credit buyers, government & NGOs, Others) and Region Forecast 2020-2031

Carbon Farming Market size was valued at US$ 550.2 million in 2024 and is projected to reach US$ 1,555.0 million by 2031 at a CAGR of 16% from 2025-2031. Moreover, the U.S. Carbon Farming Market is projected to at 15% in future.

The market refers to agricultural and land-management practices designed to capture, reduce, and store atmospheric carbon dioxide in soil and vegetation. It includes activities such as regenerative agriculture, agroforestry, cover cropping, reduced tillage, and soil carbon sequestration, along with the generation and trading of carbon credits linked to these practices.

The market is gaining momentum globally due to increasing focus on climate change mitigation, net-zero commitments, and sustainable agriculture. Governments, corporates, and farmers are increasingly adopting carbon farming initiatives to reduce emissions, improve soil health, and generate additional income through carbon credit programs, supported by evolving regulatory frameworks and voluntary carbon markets.

Key Developments

• In April 2025, carbon project developer Boomitra, in collaboration with the Social Carbon Foundation, announced the first issuance of soil carbon credits under the URVARA Project in India. This milestone marks the delivery of verified climate finance to more than 6,000 smallholder farmers, recognizing and rewarding their adoption of regenerative agricultural practices.
• In July 2025, CarbonFarm announced a strategic partnership with InQube to develop a Gold Standard rice carbon project in Bengal and Eastern India. The initiative focuses on promoting the adoption of Alternate Wetting and Drying (AWD) practices in rice cultivation, a methodology that significantly lowers methane emissions from rice paddies while also improving water-use efficiency.

Carbon Farming Market Segmentation

Based on the solution type

• Practices & methodologies
• Monitoring and verification services
• Carbon credit generation platforms
• Others

Based on the solution type, practices & methodologies are anticipated to lead the carbon farming market, driven primarily by their direct and immediate impact on carbon sequestration outcomes. This segment is gaining dominance as farmers and landowners increasingly prioritize on-ground agricultural practices such as regenerative farming, reduced tillage, and agroforestry that not only enable carbon capture but also deliver visible agronomic benefits. The leading driver for this segment is the strong alignment between sustainability goals and farm-level productivity improvements. By improving soil health, water retention, and crop resilience, these practices reduce long-term input costs and enhance yield stability. This dual economic and environmental value makes practices and methodologies the most widely adopted solution type, positioning them at the forefront of market growth.

Based on the component

• Services
• Software & digital tools
• Advisory & consulting
• Others

Based on the component, services are anticipated to lead the carbon farming market, primarily due to their critical role in enabling end-to-end project execution and market participation. This segment is driven by the increasing need for hands-on support in project development, implementation, monitoring, reporting, and verification. Many farmers lack the technical expertise and operational capacity to independently manage carbon farming initiatives, making service providers essential for ensuring compliance with carbon standards and program requirements. The growing complexity of carbon credit programs further strengthens demand for managed services that reduce administrative burden and risk for participants. As a result, service-based offerings remain the most widely adopted component, supporting scalability, credibility, and trust across the carbon farming value chain and positioning this segment as the leading contributor to market growth.

Based on the deployment model

• On-field implementation programs
• Digital/remote-managed programs
• Others

Based on the deployment model, on-field implementation programs are anticipated to lead the carbon farming market, driven by their direct influence on measurable carbon sequestration and farm-level outcomes. This segment benefits from the strong preference for physical, practice-based interventions such as soil management, cover cropping, and agroforestry, which form the foundation of credible carbon farming projects. The key driver for this dominance is the requirement for tangible, verifiable changes in land-use practices to generate high-integrity carbon credits. On-field programs also deliver immediate co-benefits, including improved soil health, yield stability, and climate resilience, which encourage farmer participation. As credibility and environmental integrity remain central to carbon markets, on-field implementation continues to be the most trusted and widely adopted deployment model across regions.

Based on the end user

• Farmers & landowners
• Agribusinesses
• Corporates & carbon credit buyers
• Government & NGOs
• Others

Based on the end user, farmers & landowners are anticipated to lead the carbon farming market, as they are the primary adopters and enablers of carbon sequestration activities at the ground level. The key driver for this segment is the growing recognition among farmers of the long-term economic and agronomic benefits associated with carbon farming practices. Beyond carbon revenue, these stakeholders benefit from improved soil fertility, better water retention, and enhanced crop resilience, which directly support farm productivity and income stability. In addition, increasing access to incentive programs and simplified participation models is encouraging wider farmer engagement. As carbon farming fundamentally depends on land-use changes and practice adoption, farmers and landowners remain the most critical and dominant end-user segment driving market growth.