The voluntary carbon market (VCM) has emerged as a critical tool in the global fight against climate change, enabling businesses, organizations, and individuals to offset their greenhouse gas emissions by investing in projects that reduce or sequester carbon. As of May 6, 2025, the VCM is projected to grow from $1.7 billion in 2024 to $47.5 billion by 2035, driven by rising corporate net-zero commitments and advancements in carbon credit integrity. While the market’s potential to fund climate solutions is undeniable, its benefits are not yet fully realized in rural America, where family forest owners, farmers, and ranchers hold immense potential to contribute to climate mitigation. By leveraging programs like the American Forest Foundation’s Family Forest Carbon Program, policy initiatives like the Rural Forests Markets Act, and federal support through the Inflation Reduction Act, the VCM can become a transformative economic opportunity for rural communities. This article explores the VCM’s role, its challenges, and actionable strategies to ensure it delivers generational wealth, conservation, and climate impact for rural America.

Understanding the Voluntary Carbon Market

The VCM allows entities to voluntarily purchase carbon credits—each representing one metric ton of carbon dioxide equivalent (CO2e) reduced or removed from the atmosphere—to offset emissions. Unlike compliance markets, which are regulated by government mandates like the EU Emissions Trading Scheme, the VCM operates on a non-mandatory basis, driven by corporate sustainability goals, public relations, or ethical commitments. Projects generating credits include renewable energy, methane capture, reforestation, and sustainable agriculture, with nature-based solutions like forestry gaining traction for their scalability and co-benefits, such as biodiversity and soil health.

In 2024, the VCM faced scrutiny over credit quality, with studies questioning the validity of some forest-based credits. However, initiatives like the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles (CCP) and USDA’s efforts to enhance measurement and verification have bolstered credibility. The market’s value, though down slightly from $1.9 billion in 2022 to $1.7 billion in 2024, is poised for a 25% CAGR through 2034, fueled by demand for high-integrity credits and policy clarity from COP29’s advancements in Article 6 of the Paris Agreement.

For rural America, the VCM offers a unique opportunity. The U.S. has 800 million acres of private forestland, with 60% owned by families, often in small parcels of 30–100 acres. These landowners, along with farmers and ranchers adopting climate-smart practices, can generate credits by sequestering carbon through reforestation, improved forest management, or regenerative agriculture. Yet, barriers like high entry costs, complex verification, and market mistrust have limited rural participation. Unlocking this potential requires targeted policies, accessible programs, and robust government support.

The Case for Rural America in the VCM

Rural America is uniquely positioned to benefit from the VCM due to its vast land resources and stewardship traditions. Family forest owners, farmers, and ranchers are on the front lines of climate change, facing extreme weather, shifting growing seasons, and economic pressures. The VCM can provide new revenue streams while supporting conservation and climate goals. Here’s why rural America is critical to the VCM’s success:

1. Climate Impact

Private forests and agricultural lands are significant carbon sinks. The American Forest Foundation (AFF) estimates that family-owned forests sequester 1.5 billion metric tons of CO2e annually, equivalent to 25% of U.S. emissions. Practices like afforestation, reduced tillage, and cover cropping can further enhance sequestration, aligning with global targets to limit warming to 1.5°C. At COP28, the importance of nature-based solutions was reaffirmed, with the VCM identified as the most viable mechanism to scale these efforts.

2. Economic Opportunity

Carbon credits offer a new income source for rural landowners, who often face thin profit margins. For example, AFF’s Family Forest Carbon Program pays landowners $20–$30 per credit for sustainable forest management, generating $5,000–$10,000 annually for a 100-acre parcel. This income can fund land improvements, support retirement, or create generational wealth, revitalizing rural economies.

3. Conservation Co-Benefits

VCM projects promote biodiversity, water quality, and soil health. For instance, reforestation enhances wildlife habitats, while regenerative agriculture reduces erosion and improves watershed resilience. These benefits align with rural values of land stewardship, as 64% of forest landowners surveyed by AFF in 2023 expressed a desire to mitigate climate change.

4. Equity and Inclusion

Small and underserved landowners, including minority and low-income families, often lack access to traditional markets. The VCM, with proper support, can democratize economic opportunities. USDA’s $300 million investment in 2023 to connect underserved forest owners to carbon markets, funded by the Inflation Reduction Act (IRA), is a step toward equity.

Challenges to Rural Participation

Despite its potential, the VCM faces hurdles that limit rural America’s involvement:

1. High Entry Costs

Developing carbon projects requires upfront investments in planning, monitoring, and verification, often costing $10,000–$50,000 per project. Small landowners, with limited capital, find these costs prohibitive. Verification processes, requiring third-party audits, add further expense and complexity.

2. Credit Quality Concerns

Media investigations in 2023–2024 revealed that some forest-based credits, particularly avoidance credits, did not deliver promised emissions reductions. This eroded buyer confidence, depressing prices from $11.50/ton in 2022 to $3.50/ton for nature-based credits in 2023. Rural landowners risk investing in projects that yield low returns if quality standards falter.

3. Market Access

Rural landowners often lack connections to corporate buyers or carbon registries like Verra or Gold Standard. Brokers and intermediaries can take significant commissions, reducing landowner profits. Programs like AFF’s Family Forest Carbon Program simplify access, but their reach is limited, covering only 13 states as of 2025.

4. Policy Uncertainty

While COP29 advanced Article 6, enabling international carbon trading, U.S. policy remains fragmented. The absence of a national compliance market and inconsistent state-level regulations create uncertainty. The Rural Forests Markets Act (RFMA), introduced in 2023, aims to address this but awaits passage, delaying support for landowners.

5. Trust and Awareness

Many rural landowners are skeptical of carbon markets, fearing long-term land-use restrictions or exploitation by corporate buyers. A 2024 USDA survey found that 55% of farmers were unaware of carbon market opportunities, highlighting the need for education and outreach.

Strategies to Make the VCM Work for Rural America

To unlock the VCM’s potential for rural communities, stakeholders—government, nonprofits, corporations, and landowners—must collaborate on targeted solutions. Here are actionable strategies:

1. Expand Federal Support

The USDA and other agencies can build on IRA and Infrastructure Investment and Jobs Act (IIJA) investments to scale VCM participation. Key actions include:

• Subsidize Entry Costs: Expand funding for planning and verification, as seen in USDA’s $300 million program for underserved landowners. Grants or low-interest loans can cover initial expenses, making projects feasible for small holders.
• Enhance Technical Assistance: Establish the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program, as proposed by the Growing Climate Solutions Act, to provide free or low-cost support for landowners navigating carbon markets.
• Invest in Research: Fund advancements in measurement, monitoring, reporting, and verification (MRV) technologies, such as satellite-based carbon tracking, to reduce costs and improve credit integrity.

2. Pass the Rural Forests Markets Act

The bipartisan RFMA, introduced in 2023 by Senators Stabenow, Braun, and Casey, would enable USDA to issue loan and bond guarantees for carbon projects, reducing financial risks for landowners. If passed, RFMA could unlock $1 billion in private investment, creating 10,000 rural jobs and supporting 50,000 forest owners. Congress should prioritize its passage in 2025 to catalyze market access and sustainable land management.

3. Scale Programs Like the Family Forest Carbon Program

AFF’s Family Forest Carbon Program, active in 13 states, simplifies VCM participation by aggregating small parcels, covering verification costs, and connecting landowners to buyers. In 2024, it enrolled 2 million acres, generating $15 million for landowners. Expanding the program to all 50 states, with increased funding from USDA or private partners, could enroll 10 million acres by 2030, sequestering 100 million tons of CO2e annually.

4. Strengthen Credit Integrity

High-integrity credits are critical to restoring buyer confidence and ensuring fair returns for landowners. The Integrity Council’s CCP, launched in 2023, sets strict standards, approving methodologies for reforestation but rejecting some renewable energy credits. USDA should align its programs with CCP, while registries like Verra and Gold Standard enhance transparency through blockchain-based tracking, as adopted by platforms like KlimaDAO. These efforts can stabilize prices and attract corporate buyers like Microsoft, which purchased 3.5 million credits in 2025.

5. Educate and Engage Landowners

Outreach campaigns can address trust and awareness gaps. USDA’s Natural Resources Conservation Service, in partnership with nonprofits like AFF, should host workshops, webinars, and field days to demystify carbon markets. Success stories, like a West Virginia landowner earning $8,000 annually through AFF, can inspire participation. X campaigns highlighting rural VCM benefits, as seen in 2025 posts by AFF, can further amplify outreach.

6. Foster Corporate Partnerships

Corporations, driven by net-zero goals, are key VCM buyers. Companies like Shell and Climate Impact Partners, which partnered in 2023 to develop nature-based credits, can commit to purchasing from rural American projects. Long-term offtake agreements, like those signed by Microsoft and Meta, ensure stable demand, enabling landowners to plan investments. Incentives, such as tax credits for buying U.S.-based credits, could encourage domestic focus.

7. Promote Equity and Inclusion

Programs must prioritize underserved landowners, including Black, Indigenous, and low-income families, who own 20% of U.S. forestland but face systemic barriers. USDA’s Equity Commission, established in 2023, can guide inclusive VCM policies, ensuring grants and technical assistance reach marginalized communities. AFF’s outreach to minority landowners, piloted in 2024, should be scaled nationwide.

Real-World Impact: Success Stories

The VCM is already transforming rural lives, as seen in these examples:

• West Virginia Family: A 150-acre forest owner enrolled in AFF’s Family Forest Carbon Program in 2023, earning $8,000 annually for sustainable management. The income funded a new barn and college savings, while the forest sequesters 400 tons of CO2e yearly.
• Mississippi Farmer: A Black farmer with 80 acres joined a USDA-funded regenerative agriculture project in 2024, generating $5,000 in credits by adopting cover cropping. The funds supported equipment upgrades, boosting productivity.
• Montana Rancher: A rancher partnered with a carbon developer in 2025 to restore grasslands, earning $10,000 in credits while improving soil health and water retention, enhancing resilience to drought.

These stories, shared on X and in USDA reports, demonstrate the VCM’s potential to deliver economic and environmental wins when barriers are addressed.

The Path Forward

The VCM’s growth trajectory—$1.6 billion in 2025 to $47.5 billion by 2035—signals its permanence in the climate finance landscape. For rural America, this presents a once-in-a-generation opportunity to harness private capital for conservation and prosperity. However, realizing this potential requires overcoming barriers through policy, programs, and partnerships.

The Biden-Harris Administration’s climate agenda, including the IRA and IIJA, has laid a foundation, but the incoming Trump Administration, starting January 2025, must maintain momentum. President Trump’s budget, praised by USDA Secretary Rollins for fiscal responsibility, should prioritize VCM investments to avoid locking rural communities out of economic opportunities.

Stakeholders must act swiftly:

• Congress: Pass the RFMA to unlock private investment.
• USDA: Expand funding and technical assistance for small landowners.
• Nonprofits: Scale programs like AFF’s Family Forest Carbon Program.
• Corporations: Commit to high-integrity, U.S.-based credits.
• Landowners: Engage with trusted programs and advocate for supportive policies.

Conclusion: A Win-Win for Climate and Rural America

The voluntary carbon market is here to stay, and rural America stands at its forefront, ready to lead in climate solutions while building economic resilience. By addressing barriers—high costs, market access, and trust—the VCM can deliver generational wealth, conserve natural resources, and mitigate climate change. Programs like AFF’s Family Forest Carbon Program, policies like the RFMA, and federal investments through the IRA are paving the way, but collective action is needed to scale impact.

As we mark International Friendship Day on July 30, 2025, let’s celebrate the unseen bonds between rural landowners, policymakers, and corporate partners working to make the VCM a reality. Visit familyforestcarbon.org or usda.gov to explore opportunities, and join the movement to ensure rural America thrives in the carbon economy. Together, we can prove that private finance, rooted in rural stewardship, is a powerful force for a sustainable future.