Carbon Policies: How Much Is Carbon Worth in Wheat Fields?

Soil is not just the foundation of agriculture — it’s one of the planet’s largest carbon reservoirs.
For decades, however, this role has been largely invisible in economic terms.
Today, with the rise of global and European climate policies, carbon is becoming a measurable asset — and even a wheat field can turn into a “CO₂ bank.”

But how much is agricultural carbon really worth? And how can it be measured?

Carbon as Climate Currency

Every ton of CO₂ stored in soil — or avoided through sustainable practices — represents a carbon credit.
These credits can be traded in regulated or voluntary markets, creating an additional source of income for farmers.

In cereal systems, the main practices that help store or reduce carbon emissions include:

  • Crop rotations with legumes and cover crops;
  • No-tillage or reduced tillage systems;
  • Use of compost, organic amendments, and crop residues;
  • Reduced use of synthetic nitrogen fertilizers.

According to the Joint Research Centre (JRC, 2024), regenerative cereal soils can sequester 0.3 to 0.8 tons of CO₂ equivalent per hectare per year.
At the average European voluntary market price (between €25 and €60 per ton CO₂, 2025 data), this equals €7.5 to €48 per hectare per year in potential climate service value.

The European Carbon Farming Initiative

In 2024, the European Commission launched the Carbon Farming Initiative, a strategic framework to recognize and certify agricultural practices that remove or avoid greenhouse gas emissions.
Its dual goal is to:

  1. Create a system of certified, traceable agricultural carbon credits within the EU;
  2. Provide financial rewards to farmers who contribute to climate neutrality by 2050.

The proposal establishes the EU Carbon Removal Certification Framework, based on four key principles:

  • Quantification – measurable carbon removals using scientific methods;
  • Additionality – proving the benefit would not have occurred without intervention;
  • Permanence – ensuring long-term storage of soil carbon;
  • Verifiability – transparent and auditable monitoring.

These criteria turn sustainability into an economic language of measurable results — the foundation of a new data-driven agriculture.

Wheat and the Bioeconomy of Carbon

Wheat, because of its vast global footprint, plays a key role in agricultural decarbonization.
Across Europe, wheat covers more than 45 million hectares, representing a major share of total agricultural emissions.

Scaling up carbon farming across cereal systems could:

  • offset up to 6% of total agricultural emissions in the EU;
  • improve soil structure and drought resilience;
  • reduce dependence on synthetic fertilizers and pesticides.

As highlighted by the FAO (2024), every ton of carbon sequestered in agricultural soils enhances biological productivity and reduces erosion by 15–25% in rotational systems.

From Policy to Practice: Measuring Agricultural Carbon

Monitoring soil carbon is both a scientific and technical challenge.
Three main approaches are currently used:

  1. Direct measurements – soil sampling and laboratory analysis of soil organic carbon (SOC);
  2. Simulation models – such as RothC or Century, estimating carbon dynamics over time;
  3. Remote sensing and IoT sensors – combining satellite imagery and field data through machine learning algorithms.

European projects such as LIFE Soil4Climate, Horizon AGRICARBON, and CarbonSpace EU are developing digital platforms to help farmers track their carbon balance in real time and obtain certified carbon credits.

The Value of a Carbon-Positive Soil

The economic value of regenerated soil goes far beyond carbon credits. It also lies in:

  • Improved soil fertility, lowering fertilizer needs;
  • Higher water retention, reducing irrigation costs;
  • Yield stability under extreme weather conditions;
  • Enhanced environmental reputation for sustainable cereal brands.

In an economy where consumers and investors reward transparency, carbon becomes a new form of agricultural value — invisible, yet measurable.

The Risk of “Soilless Green Finance”

Like any emerging market, agricultural carbon credits face challenges:

  • Speculation and price volatility;
  • Double counting of carbon credits;
  • Verification difficulties across complex farm systems.

The challenge is to ensure that green finance remains connected to the soil — that carbon markets reflect real environmental benefits, not just financial products.
This is why the FAO and European Commission are promoting public, transparent certification standards, ensuring that farmers and ecosystems alike gain tangible rewards.

A New Pact Between Agriculture and Climate

Carbon policies create a frontier where profitability meets sustainability.
If guided by sound science and transparent governance, they can turn wheat — one of humanity’s oldest crops — into a modern tool for climate mitigation and soil regeneration.

As CREA (2024) notes, “The future of agricultural carbon lies not in markets alone, but in the field.”
Each regeneratively managed hectare of wheat thus becomes a natural engine of climate balance.

Sources:

  • European Commission (2024). EU Carbon Farming Initiative – Carbon Removal Certification Framework.
  • Joint Research Centre (2024). Carbon Sequestration Potentials in European Arable Systems.
  • FAO (2024). Soil Carbon and Regenerative Agriculture: Global Evidence and Policy Tools.
  • CREA – Agriculture and Environment (2024). Carbon Balance in Mediterranean Cereal Systems.
  • Horizon Europe (2025). AGRICARBON and Soil4Climate Project Reports.