Producer preference for land-based biological carbon sequestration in agriculture: Some implications from a sample of North Dakota farmers

Abstract

The objective of this study was to develop an understanding of producer preferences for land-based biological carbon (C) sequestration in agriculture. We conducted a mail survey in a US production region to elicit farmers’ willingness to participate in different C credit programs in a hypothetical greenhouse gas mitigation market. We used the survey data to calibrate a behavior model in a benefit-cost framework that characterizes farmers’ decisions about C program participation in relation to preferences and the attributes of both C programs and production. Our empirical analysis suggested that (1) producers would respond to the market incentive for C sequestration; (2) producer responses might be limited, particularly at low C prices; and (3) producers might perceive differentially a cost for C sequestration, depending on individual preferences, production attributes, and specific practices to be adopted. A policy simulation of producer behavior with agricultural census data estimated the potential C offset supply in the study area.