Microsoft has purchased 2.6 million carbon removal credits from the sustainable farming group Agoro Carbon Alliance over 12 years.

The carbon credits will be generated from Agoro Carbon’s US crop and rangeland projects, developed under Verra’s VM0042 Improved Agricultural Land Management methodology. The methodology quantifies the greenhouse gas emission reductions and soil organic carbon removals resulting from the adoption of improved agricultural land management practices.

The projects utilize regenerative agricultural practices such as cover cropping, improved grazing, and reduced tillage to sequester carbon in the soil while supporting agricultural resilience, biodiversity, food security, and water retention.

According to Agoro, ranchers and farmers who enroll in the program receive benefits including improved crop and forage yields, increased input efficiency, and enhanced resistance to extreme weather. In addition, it provides them with a new income stream.

“This agreement with Microsoft is the strongest endorsement of our quality-driven, farmer-focused approach to soil carbon sequestration,” stated Elliot Formal, CEO of Agoro Carbon. “We’re working with farmers and ranchers—offering hands-on support from our agronomists to ensure they achieve meaningful, long-term outcomes. From initial implementation to sustained success, we’re committed to helping producers build resilient operations for the future.”

The partners also claim that Agoro’s program aligns closely with Microsoft's criteria for high-quality removals, through the use of a data-driven approach combining advanced modeling, field-level soil sampling, and stringent third-party verification to ensure durability and transparency.

“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 at Microsoft, including support of scalable, agriculture-based climate solutions that deliver measurable impact over time.”

The agreement is Microsoft's third in the soil regeneration sector in recent years, having previously signed two carbon removal agreements with soil enrichment firm Indigo. This included a 60,000-ton purchase in May, and a 40,000-ton purchase last June.

Outside of the soil enrichment and sustainable farming space, Microsoft has signed numerous other carbon removal agreements. In 2025 alone, it has partnered with several reforestation companies, biochar firms, and Enhanced Rock Weathering companies.