The Achilles Heels of Carbon Farming: Operational Constraints on the Next Cash Crop

13 Pages Posted: 8 Aug 2022

See all articles by Amy W. Ando

Amy W. Ando

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Jonathan Coppess

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Ben Gramig

University of Illinois at Urbana-Champaign

Menglin Liu

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Nicholas Paulson

University of Illinois at Urbana-Champaign

Date Written: July 18, 2022

Abstract

Urgent calls for actions to slow climate change have stimulated new interest in actions to harness the potential for carbon sequestration on agricultural lands. The private sector has established corporate goals for reducing contributions to climate change and there has been much decentralized market activity to develop voluntary markets for agricultural soil carbon sequestration to meet this demand from companies and consumers wishing to offset emissions. This brief conducts a critical assessment of the nature of the market opportunity today for farmers and for those who would benefit from the opportunity to incentivize real increases in net carbon sequestered in agricultural lands of the U.S. We discuss how the potential success of these markets is currently limited by important factors related to contract design and land tenure, with suggestions for how to address the challenges and unlock the opportunities.

Keywords: carbon sequestration, agriculture, climate change, offsets, markets, land tenure

JEL Classification: Q15, Q54

Suggested Citation

Ando, Amy W. and Coppess, Jonathan and Gramig, Benjamin and Liu, Menglin and Paulson, Nicholas, The Achilles Heels of Carbon Farming: Operational Constraints on the Next Cash Crop (July 18, 2022). Available at SSRN: https://ssrn.com/abstract=4166379 or http://dx.doi.org/10.2139/ssrn.4166379

Amy W. Ando (Contact Author)

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

326 Mumford Hall, MC-710
Urbana, IL 61801
United States
217-333-5130 (Phone)
217-333-5538 (Fax)

Jonathan Coppess

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States

Benjamin Gramig

University of Illinois at Urbana-Champaign ( email )

United States

HOME PAGE: http://www.bengramig.com

Menglin Liu

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

Champaign, IL
United States

Nicholas Paulson

University of Illinois at Urbana-Champaign ( email )

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