Microsoft has inked a deal with a soil enrichment-focused agriculture firm for carbon removal.

Indigo Ag announced that Microsoft will buy 40,000 agricultural soil-based carbon credits from its third carbon crop, released in February.

Brian Marrs, Microsoft's senior director of energy and carbon removal, highlighted: "Restoring soil organic carbon is crucial for future food systems, economies, and climate change mitigation. We're glad to partner with Indigo Ag to promote regenerative agriculture practices and expand the scientific understanding of soil organic carbon."

Founded in 2013 and operational in 14 countries worldwide, Indigo pays farmers to extract carbon from the air and store it in their soils through methods like adding cover crops, increasing cover crop diversity or growth period, reducing tillage, improving nitrogen timing, or diversifying system rotation. Farmers receive payments for adopting these practices, which enhance soil health and generate carbon credits purchasable by companies.

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Indigo noted this agreement marks its largest credit issuance to a single buyer. These credits are verified and issued in accordance with the US Soil Enrichment Protocol of the Climate Action Reserve.

Dean Banks, CEO of Indigo Ag, remarked: "Today's announcement is a significant milestone for Indigo's Carbon program and our expanding portfolio of ag-based sustainability solutions. Microsoft, a leader in corporate climate initiatives and a key player in carbon removals, shares our dedication to fostering a resilient and sustainable agricultural system."

Indigo currently manages nearly 7 million acres of farmland with 2,850 farms participating in its program. It has issued 296,000 carbon credits, compensating farmers a minimum of $20 per credit.

Microsoft aims to achieve carbon negativity by 2030, supporting various initiatives to achieve this goal. It is procuring renewable energy on a large scale for its operations and investing in carbon capture and removal projects to offset its historical emissions. However, one company it recently supported in carbon removal has ceased operations.