Microsoft has signed a landmark 12-year agreement with Agoro Carbon Alliance to purchase 2.6 million soil carbon removal credits, in what the companies say is one of the largest commitments to agriculture-based carbon removals to date.

The deal underscores a rising corporate demand for high-integrity, science-backed climate solutions and signals a substantial investment in scaling regenerative agriculture in the United States.

Regenerative Agriculture at Scale

The credits will be generated from Agoro Carbon’s crop and rangeland projects across the U.S., using Verra’s VM0042 Improved Agricultural Land Management methodology.

The projects promote regenerative practices such as cover cropping, reduced tillage and improved grazing, which enhance soil carbon storage and provide environmental co-benefits including increased biodiversity, water retention and climate resilience.

“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 with farmers and ranchers to achieve meaningful, long-term outcomes.”

Participating producers are expected to benefit not only from new income streams through carbon credit generation, but also from improved yields, increased input efficiency and greater resilience to extreme weather events.

Durability, Transparency and Scale

The agreement spans 12 years and covers the removal of 2.6 million metric tons of carbon dioxide equivalents, setting a benchmark for the soil carbon market.

Agoro Carbon will use a combination of advanced modeling, field-level soil sampling and third-party verification to meet Microsoft’s criteria for high-quality removals.

“Agoro Carbon’s approach to soil-based carbon removals reflects the kind of scientific rigor and long-term solution we look for in our carbon removal portfolio,” said Brian Marrs, senior director of energy markets at Microsoft. “This agreement supports our broader sustainability goals, including support of scalable, agriculture-based climate solutions that deliver measurable impact over time.”

Growing Market for Nature-Based Solutions

The deal positions Agoro Carbon, a subsidiary of Yara International, as a key player in the expanding market for nature-based carbon removal strategies.

The company’s model centers on enabling producers to adopt regenerative practices through financial incentives and agronomic support, while ensuring the environmental integrity of its credits.

Agoro Carbon joins a growing list of carbon removal partners working with Microsoft, which has committed to becoming carbon negative by 2030. The tech giant has ramped up investments in both engineered and nature-based carbon solutions as part of its climate strategy.

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