Dairy Farmers of America purchases first verified carbon credits

Athian unveiled that Dairy Farmers of America has purchased the first verified carbon credits in the livestock inset marketplace. Athian’s carbon credit marketplace creates a new value stream for dairy producers and demonstrates that cattle can be part of the sustainability solution.

Dairy Farmers of America purchases first verified carbon creditsAthian announced the first sale of verified carbon credits in the groundbreaking livestock carbon insetting marketplace to Dairy Farmers of America (DFA), the largest U.S. milk marketing cooperative. Texas dairy farmer Jasper DeVos utilized Athian’s first accepted protocol to generate carbon credits by reducing enteric methane and improving feed utilization through the use of an innovative feed management product and quantification tool from Elanco Animal Health, resulting in nearly 1,150 metric tons of carbon dioxide equivalent (CO2e) reduction. If the entire U.S. dairy industry leveraged this same intervention, it could avoid 4.7 million metric tonnes of CO2e emissions annually from enteric, feed, and manure emissions, accelerating the impact animal agriculture has on being part of the climate solution.

DFA is proud to lead the way as the first U.S. dairy cooperative to establish a science-based target (SBT) with the goal of reducing greenhouse gas emissions across the supply chain by 30% by 2030. As part of an industry-wide collaboration on environmental sustainability through the Innovation Centre for U.S. Dairy, DFA is a key contributor to the dairy industry’s commitment to become greenhouse gas neutral or better by 2050.

“Dairy farmers raise their families and their herds on the same land. They have always been the true stewards of the land, the air, and the water and, as a result, have been consistently reducing their carbon footprint, year in and year out, decade after decade. However, the necessary systems have not been in place to quantify their tremendous environmental progress in a manner that would compensate for the ongoing investments they have made over generations. The marketplace can now finally allow farmers to realise financial benefits from their initiatives,” said Dennis Rodenbaugh, President and CEO of Dairy Farmers of America (DFA), a cooperative owned by nearly 11,000 family dairy farmers across the country. “We’re gratified to see this science-based, third-party-verified and validated system coming to life with the Athian platform and that dairy farmers are among the first to prove it works. The dairy industry has been positioned to rapidly advance. By working within the value chain on an insetting approach with the companies we work with every day, and now farmers can directly benefit.”

THE FUTURE OPPORTUNITY
This new carbon market opportunity comes at a critical time. Farm sector income, including dairy, is forecast to have decreased by more than 20% in 2023. This new marketplace creates a scalable opportunity for farmers to earn money for their sustainability efforts while accelerating a tangible impact on emissions reduction when it’s needed. Dairy farmers of all sizes now have the opportunity to reduce their greenhouse gas emissions, quantify and validate their reductions, and sell the resulting credits in Athian’s livestock carbon insetting marketplace.

“Finally, farmers are getting access to the tools we need to accelerate the adoption of conservation practices and supplement income on the farm, which will allow us to reinvest in our farm’s stewardship efforts and contribute to the operation’s financial health for the next generation,” said Jasper DeVos, a Texas dairy farmer and DFA farmer-owner. “The Athian platform is a critical step in ensuring dairy farmers of all sizes can be recognised and rewarded for the investment we are making towards a healthier environment.”

The insetting model developed by Athian benefits farmers and the environment and meets the growing consumer demand for sustainable choices. A recent report from the global Food and Agriculture Organisation recognised the need for more animal protein production to address global hunger and nutrient deficiencies while also reducing emissions. In livestock, nine measures are set out that aim to reduce methane emissions in 2030 by 25% and for productivity for livestock to grow by 1.7% per year globally by 2050.

“It’s exciting to see the full value chain come together to accelerate climate progress,” said Paul Myer, CEO of Athian. “Athian’s carbon credit marketplace is different than the traditional offsetting carbon marketplaces because it keeps the value inside the animal protein value chain and allows each participant to gain unique value from the transaction. The farmer is able to create a new revenue stream; the food companies that have had challenges meeting their Scope 3 emissions reductions are able to make significant progress; and ultimately, we’re able to mark progress against aggressive global goals.”

Elanco and other experts have conducted extensive studies to find opportunities for the reduction of both methane and feed resources.