ProducePay, a California-based provider of distribution and financing solutions to domestic and international produce farmers, has partnered with Swiss-based emissions management solutions company ALLCOT to launch a carbon offset program targeting primary crop farmers.

The carbon offset program is the first part of ProducePay’s “Sustainably Sourced” initiative, the company’s planned global supply chain standard for a sustainable ecosystem for fresh produce. The program operates similarly to conventional carbon credit programs where farmers can generate carbon credits by adopting climate-smart or regenerative agriculture practices that reduce carbon emissions. Credits can then be sold in the international market to buyers who want to offset their emissions. The program will target growers of asparagus, grapes, and strawberries.

ProducePay conducted a feasibility study with support from ALLCOT to assess the potential of the carbon market and found that most farmers are already using sustainable agricultural practices to reduce carbon emissions and satisfy the requirements needed to sell carbon offsets in the international market. The company plans to launch the program later this year.

ProducePay has also received recommendations from ALLCOT to support its small and medium growers to become compliant with carbon market requirements. This included developing a roadmap for the adoption of carbon-friendly practices and infrastructure such as pressurized irrigation systems, alternative farming inputs, and implementation of water desalination technologies.