21 July 2025

In one of the largest soil carbon credit agreements to date, Agoro Carbon has signed a 12-year offtake contract with Microsoft to deliver 2.6 million verified soil carbon credits. The deal not only marks a commercial milestone for Agoro Carbon, but also signals growing confidence in the scalability and credibility of soil-based carbon removals—an area that has long been viewed with both promise and scepticism.

“The deal sets a new benchmark for what high-quality, long-term offtakes in the voluntary carbon market should look like—not just in terms of volume, but in structure,” said Dylan Lubbe, Agoro Carbon’s Commercial Director, in an exclusive interview with MoveTheNeedle.news.

Who is Agoro Carbon?

Founded in 2021 as a division of Yara International, Agoro Carbon is a soil carbon project developer that partners with farmers and ranchers to generate measurable and verifiable carbon removals. By incentivising regenerative agricultural practices—like reduced tillage, cover cropping, and managed grazing—the company helps increase soil organic carbon (SOC) stocks. In return, participating producers receive financial and technical support, and Agoro issues soil carbon credits that can be sold in the voluntary carbon market.

The Microsoft Agreement: Not Just Big, but Smart

To secure the offtake agreement with Microsoft, Agoro Carbon went through a rigorous competitive RFP process, including on-the-ground site visits and a technical due diligence review. The outcome is a 12-year commitment to deliver carbon removal credits generated from enrolled agricultural land, using the Verra VM0042 methodology—a globally recognised standard for soil carbon quantification.

“This agreement is the result of a long period of deep due diligence, technical engagement, and shared commitment to high-integrity carbon removals,” Lubbe explained. “Microsoft’s approach to carbon procurement is among the most rigorous in the world, so the bar was set high—and rightly so.”

Each year, Agoro Carbon will deliver a portion of the total credits, tied to verified removals. According to Lubbe, this isn’t speculative.

“The volume was determined based on a forward production of removal credits that will be issued from our enrolled acres over the 12-year term. It’s grounded in actual practice adoption, soil data, and sequestration potential, all subject to third-party verification.”

A Boost for Farmers and the Soil Carbon Market

The deal offers long-term certainty for both buyers and producers—something the voluntary carbon market has often lacked.

“This isn’t just a commercial milestone—it’s a validation of our quality-first model,” said Lubbe. “It signals to the broader market that soil carbon, when done right, is scalable, investable, and capable of delivering real climate impact.”

Soil carbon credits have faced scrutiny in the past, particularly around durability and verification. Agoro Carbon addresses these concerns through a rigorous MRV (Measurement, Reporting, and Verification) framework. This includes:

• Baseline and follow-up soil sampling by certified third-party labs

• Modelling that captures sequestration over time

• Use of a Buffer Pool (non-tradable credits held in reserve) to protect against reversals

• Compliance with Verra’s methodologies, the most widely used standards in the voluntary carbon market

Support for Producers

Agoro Carbon takes a farmer-first approach, structuring its program to mitigate financial risk and encourage long-term practice change.

“Our program prioritizes high-quality acres, delivers tailored agronomic support to growers and ranchers, and incorporates financial de-risking strategies—all of which are critical to minimizing the risk of non-permanence due to practice reversal,” said Lubbe.

Farmers benefit from:

• Prepayments and fixed payments upon credit issuance

• Dedicated support from a Grower Success Team

• Access to carbon market revenue without being exposed to market volatility

“The Grower Success team works with producers to understand the required data, coordinate the soil-sampling process, communicate carbon measurements, and provide local, farm-customised agronomic support throughout the contract,” said Lubbe.

The Bigger Picture: Scaling Regenerative Agriculture

This deal is part of Microsoft’s broader strategy to remove 1 million metric tonnes of CO₂ annually by 2030. But for Agoro Carbon, it’s also a strategic signal to the broader market.

“We’re committed to producers’ long-term success in the ag carbon market,” Lubbe said. “It proves that soil carbon can deliver credible, durable removals when rooted in rigorous methodology and farmer-first program design.”

Agoro Carbon continues to expand its reach across the U.S., with plans to explore new markets in the coming years. Their aim is clear: reshape the carbon market by setting a high bar for quality, permanence, and shared value.

“We’re not here to follow the market—we’re here to help shape it,” Lubbe concluded. “With a focus on permanence, scale, and shared value.”

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🌱 Background: What Are Soil Carbon Credits?

Soil carbon credits are a type of nature-based carbon removal. They’re generated when agricultural practices are changed to improve carbon sequestration in the soil. By increasing soil organic carbon, farmers can help pull CO₂ out of the atmosphere. These changes are measured over time, verified by third parties, and converted into tradeable carbon credits that companies like Microsoft can purchase to meet their climate goals.

Soil carbon is viewed as one of the most scalable and cost-effective removal strategies—but it requires scientific rigour and producer trust to be credible. Projects like Agoro Carbon’s are helping prove that high-quality soil carbon can deliver real, durable benefits at scale.