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By Agroempresario.com
The global agricultural sector is undergoing a profound transformation as climate commitments, environmental regulations, and market pressures converge. At the center of this change stands Arva, a Houston-based company that is pioneering the integration of greenhouse gas (GHG) accounting with regenerative agriculture. By building advanced data platforms and forging partnerships with corporations and farmers, Arva is showing that sustainability not only has environmental value but also generates real financial returns.
In recent years, questions around whether regenerative agriculture pays off have intensified. According to Jay McEntire, CEO of Arva, the answer is unequivocal: yes. “We paid out $20 million to farmers engaging in regenerative practices in 2023, more than $40 million in 2024, and we expect to pay out even more this year,” McEntire explained. This scaling of payments demonstrates that regenerative practices can create measurable, marketable environmental assets, ultimately benefitting both farmers and corporate supply chains.
The idea of farming in ways that restore soil health, increase carbon sequestration, and reduce water use has moved from a niche sustainability trend to a core business strategy for the food and agriculture industry. Corporations that once relied on carbon offsets are now looking directly at their supply chains to reduce Scope 3 emissions, the indirect emissions that occur throughout the value chain.
However, implementing and measuring the impact of regenerative agriculture requires sophisticated tools. This is where Arva steps in. Its proprietary platform, CropForce, aggregates vast datasets ranging from soil biogeochemistry and genetic information to weather patterns, satellite imaging, lidar, telemetric measurements, and on-farm management practices. By unifying these inputs, Arva creates precise models of carbon intensity, water usage, and soil health impacts, enabling both farmers and corporations to make data-driven sustainability claims.
According to McEntire, “Our role is to help clients understand their environmental, social, and governance (ESG) goals, and deliver the accounting, measurement, and verification necessary to prove real outcomes.”
The demand for measurement, monitoring, reporting, and verification (MMRV) has surged due to regulatory shifts. Under the European Union’s Corporate Sustainability Reporting Directive (CSRD), large firms are legally obligated to report Scope 3 emissions. Similar regulations are emerging in Japan, Australia, the UK, Turkey, and California. Even in markets without binding requirements, like the United States, many corporations have voluntarily committed to Science Based Targets initiative (SBTi) goals, putting pressure on supply chains to deliver verified emissions reductions.
This evolving landscape is creating opportunities for firms like Arva to serve as the bridge between corporate climate commitments and on-the-ground agricultural practices. By underwriting environmental assets and issuing certificates backed by farm-level data, Arva ensures companies can meet targets while compensating farmers fairly for their regenerative practices.
The payment system is straightforward in design but powerful in effect. Corporations set sustainability goals, and Arva collaborates with farmers through cooperatives and agronomists to gather the necessary data. Farmers who adopt specific regenerative practices—such as cover cropping, no-till, or alternate wetting and drying in rice fields—are paid per acre.
In some cases, corporations recoup costs through carbon credits, crop premiums, or tax incentives linked to reduced carbon intensity. In others, investments are seen as strategic moves to future-proof supply chains by making them more resilient to drought, pests, and other climate-related risks.
As McEntire points out, even a small increase in soil organic matter can dramatically improve drought tolerance, offering economic and ecological benefits.
Arva creates Environmental Attribute Certificates (EACs), which package verified environmental outcomes—such as carbon sequestration or water savings—into transferable assets. These certificates can be applied to Scope 3 emission reduction claims, project accounting, or inventory accounting.
For example, in 2024, Arva’s work with Riceland Foods farmers generated 12 billion gallons of water savings through improved rice cultivation methods. These measurable savings represent more than sustainability—they become marketable attributes with real economic value.
The concept of “digital twins to the bushel” is central to Arva’s model: every unit of production can be linked with verified environmental attributes, enhancing its value across the supply chain.
Despite its promise, the voluntary carbon market has faced criticism for lack of rigor and permanence. Soil carbon credits, for instance, can be reversed by tillage, drought, or land-use changes. McEntire acknowledges these concerns but emphasizes that progress should not be stalled by perfectionism.
“Are we going to make the rules so hard that nobody does anything? Even if carbon is only sequestered for a year, it has measurable value,” he argues. By pricing credits appropriately, risks can be managed, and the market can grow responsibly.
Wall Street, McEntire predicts, will eventually treat environmental assets like mortgage bonds, applying insurance and risk management tools to guarantee outcomes. He believes robust carbon markets will fully materialize by 2027–2028, driven by 2030 climate targets and the rising carbon footprint of data centers.
While carbon reductions remain central, regenerative agriculture also delivers co-benefits:
These outcomes make regenerative practices more than compliance tools; they are strategic investments in long-term competitiveness.
The role of farmers is both critical and uncertain. Many wonder who will pay for the transition. Arva provides certainty by securing contracts with corporations before onboarding farmers, guaranteeing payments if regenerative practices are implemented correctly.
As McEntire explains, “If the farmers do their job and we do ours, the money is there. Our contracts guarantee payment.” This assurance helps overcome one of the biggest barriers to adopting regenerative methods: financial risk.
Arva now operates across 13 crops in eight countries—soon to be 12. Its expansion reflects a growing recognition that agriculture is central to the global climate solution. Beyond food systems, Arva is working with biofuel producers and exploring broader applications of environmental attribute markets.
McEntire envisions Arva as a trusted resource for corporations navigating sustainability commitments, whether they have clear strategies or are just beginning the journey. “We’re here to compile the data, underwrite it, and create reports that withstand audits. It requires everyone working together, but the solution is affordable and delivers massive co-benefits.”
The momentum behind regenerative agriculture is undeniable. With climate deadlines approaching and consumer expectations rising, corporations cannot ignore the environmental impact of their supply chains. Meanwhile, farmers face mounting climate risks but also new revenue opportunities through sustainability-linked payments.
Arva’s approach—grounded in science, data, and collaboration—illustrates how regenerative practices can be both profitable and transformative. As the company scales, it is redefining the relationship between agriculture, finance, and sustainability, proving that the path to decarbonization runs directly through the farm gate.
