Farmers' Preferences and Willingness to Accept Carbon Payments for Adopting Conservation Management Practices

The potential of agricultural soil carbon sequestration in reducing greenhouse gases and mitigating the impacts of climate change is widely recognized. However, there is limited knowledge of farmers’ preferences and willingness to accept carbon payments to switch to carbon-sequestering conservation practices. This study investigates how farmers’ preferences and willingness to accept carbon payments differ based on their current adoption behavior toward conservation practices. The data for the analysis were collected through a mail-in survey of row crop producers in South Dakota, conducted from December 2021 to February 2022. The study employed a discrete choice experiment and random parameter logit model to estimate farmers’ preferences and willingness to accept carbon payments. Our study shows that farmers’ preferences and willingness to accept carbon payments vary based on their adoption status of conservation practices and practice type. The findings suggest that carbon market providers and policymakers should consider developing targeted programs and policies that consider differences in farmers’ preferences toward carbon payments based on their current adoption status