Microsoft signs 12-year deal with Agoro Carbon for 2.6 million soil carbon credits

Agoro Carbon has signed a 12-year offtake agreement to deliver 2.6 million verified soil carbon removal credits to Microsoft, in what is being described as one of the most significant agriculture-based carbon removal transactions on record.

The deal reflects growing corporate interest in durable, science-backed climate solutions rooted in agriculture. Carbon credits will be generated through Agoro Carbon’s regenerative farming and ranching projects across US cropland and rangeland, under Verra’s VM0042 methodology. Practices include cover cropping, reduced tillage, and improved grazing designed to sequester carbon while improving land productivity and resilience.

Agoro Carbon, a subsidiary of Yara International, said the agreement sets a new benchmark in scale and quality for the soil carbon market. The company’s program combines advanced modeling, field-level sampling, and third-party verification, and is tailored to meet Microsoft’s criteria for high-integrity removals.

“This agreement with Microsoft is the strongest endorsement of our quality-driven, farmer-focused approach to soil carbon sequestration,” said Agoro Carbon CEO Elliot Formal. “We’re working hands-on with producers to ensure meaningful, long-term outcomes that benefit both the environment and their operations.”

The credits are expected to unlock investment to expand regenerative practices among US farmers and ranchers, who receive technical and financial support through Agoro’s program. In return, they can improve yields, increase input efficiency, and generate an additional revenue stream through carbon markets.

Microsoft, which aims to be carbon negative by 2030, has been investing in a diversified portfolio of carbon removal strategies. “Agoro Carbon’s approach reflects the kind of scientific rigor and long-term solution we look for,” said Brian Marrs, Senior Director of Energy Markets at Microsoft.

The agreement underscores growing momentum around soil-based carbon as a viable and scalable tool for climate mitigation, particularly when paired with rigorous measurement and verification. It also reinforces Agoro Carbon’s positioning as a key player in the voluntary carbon market.