Sustainable Farming in the Midwest

Sustainable Farming in the Midwest: Combining Carbon Banking, Wetland Banking, and Agroforestry for Environmental and Economic Benefits

As Midwest farmers face the challenges of climate change and economic uncertainty, innovative practices such as agroforestry, wetland banking, and carbon banking are emerging as effective solutions. These practices enhance environmental sustainability and provide new income streams through carbon credits, financial incentives, and diversified crop production. This article explores how Midwest farmers can integrate these practices into their operations, along with the financial grants and incentives available to support them.

Agroforestry: A Sustainable Farming Practice

Agroforestry is a land-use management system that integrates trees and shrubs with crops and livestock. This practice offers numerous environmental and economic benefits, making it an attractive option for Midwest farmers.

Key Agroforestry Practices

1. Alley Cropping: Trees or shrubs are planted alongside crops, creating alleys for crop production. This system provides shade, reduces soil erosion, and improves soil health.

2. Silvopasture: Combines grazing livestock with trees planted on the same land. This practice provides short-term income from livestock and long-term income from timber or other tree products.

3. Windbreaks: Linear plantings of trees and shrubs designed to slow wind, protect crops, and provide habitat for wildlife. Windbreaks also sequester carbon and improve soil health.

Environmental Benefits of Agroforestry

• Diversified Income: Farmers can create multiple revenue streams by creating multiple crops on the same land. Timber, fruits, nuts, and other non-timber forest products can be harvested alongside traditional crops, reducing reliance on a single income source.
• Carbon Credits: Trees serve as natural carbon sinks, absorbing carbon dioxide from the atmosphere and storing it in their biomass and the soil. Agroforestry systems can sequester between 2 and 4 tons of carbon per acre each year. Farmers can earn carbon credits by sequestering carbon, which can be sold on carbon markets for additional income.
• Soil Health: Trees add organic matter to the soil, improving its fertility and productivity and decreasing reliance on synthetic fertilizer applications.

Carbon Banking: A New Revenue Stream for Farmers

Carbon banking, or carbon farming, refers to practices designed to capture and store carbon in the soil. Farmers can then sell carbon credits to companies or organizations seeking to offset their carbon emissions.

How Carbon Credits Work

• Carbon Credits: A carbon credit represents one metric ton of carbon dioxide (or equivalent greenhouse gases) sequestered or avoided. Farmers can earn credits by adopting carbon-friendly practices such as agroforestry, cover cropping, and no-till farming.
• Carbon Markets: Farmers can sell carbon credits on voluntary carbon markets or through programs like the Soil and Water Outcomes Fund. Current carbon credits sell for $15 to $20 per ton. Buyers expect to pay $25 to $30 per metric ton by 2030.
• Verification: Farmers must work with third-party verifiers to measure and certify the amount of carbon sequestered. This ensures transparency and credibility in the carbon market.

Financial Incentives for Carbon Farming

• Expanding Agroforestry Incentive Payment Program (EAIP): The Expanding Agroforestry Incentive Payment Program (EAIP) in 2025 is a USDA-supported initiative encouraging farmers to integrate agroforestry practices into their land by offering direct financial incentives. This program allows farmers to plant trees on their agricultural land to enhance environmental sustainability while potentially increasing their income. The Nature Conservancy manages applications through its “Expanding Agroforestry Project.” 
• Environmental Quality Incentives Program (EQIP): Provides financial and technical assistance for conservation practices like cover cropping, no-till farming, and agroforestry.
• Conservation Stewardship Program (CSP):** This program rewards farmers for maintaining and improving conservation practices, such as soil health management and carbon sequestration.

Wetland Banking: A New Opportunity for Farmers and Land Managers

Wetland banking is an innovative practice that allows farmers and land managers to generate additional revenue while restoring and preserving wetlands. Wetlands are essential ecosystems that provide numerous environmental benefits, including water filtration, flood control, and habitat for wildlife.

How Wetland Banking Works

• Wetland Credits: Farmers and land managers can restore or create wetlands on their properties to earn wetland credits. These credits can then be sold to developers or other organizations that need to mitigate the environmental impact of their projects by restoring or preserving wetlands in other areas.
• Wetland Mitigation Banks: These are large-scale wetland restoration projects that create credits for sale. Farmers and land managers can join these programs by setting aside a portion of their land for wetland restoration.

Environmental Benefits of Wetland Banking

• Water Quality Improvement: Wetlands filter pollutants from runoff, improving the quality of water that enters streams and rivers.
• Flood Control: Wetlands act as natural sponges, absorbing excess water during heavy rainfall and reducing the risk of flooding.
• Biodiversity Support: Wetlands provide habitat for a wide range of wildlife, including birds, amphibians, and fish.

Economic Benefits of Wetland Banking

• Additional Income: Farmers and land managers can earn income by selling wetland credits, providing a new revenue stream.
• Financial Incentives: Programs like the Wetland Reserve Easements (WRE) and 
• Agricultural Conservation Easement Program (ACEP) offers financial incentives for wetland restoration and preservation.

Combining Practices for Maximum Impact

Midwest farmers have a unique opportunity to lead the way in sustainable agriculture by combining agroforestry, carbon banking, and wetland banking practices. These practices protect the environment and provide new income streams through carbon credits, wetland credits, financial incentives, and diversified crop production.

We are committed to supporting farmers in their sustainability efforts at Forrest Keeling Nursery. Our patented Root Production Method^R (RPM) technology ensures that our native plants grow and produce 2X faster, survive better, and thrive in their environments, making them ideal for agroforestry, wetland banking, and carbon banking operations.

Contact Forrest Keeling Nursery today to learn more about our native plant options and how we can help you integrate agroforestry, carbon banking, and wetland banking into your farm. Together, we can create a more sustainable and profitable future for Midwest agriculture.