Carbon Markets: Factors and Concerns Preventing Farmer Enrollment
Sustainable Agriculture
Michael Estadt
CIRCLEVILLE
Abstract
Farmers face multiple risks with everything they do to produce the crops and livestock they raise. So, participating in the carbon market exchanges will be no different.
To generate a high-quality carbon credit, farmers are being asked to change tillage practices, with no-till being the desired practice. This is a major change with potentially high risk of yield reduction in the early adoption phase of implementation. Couple that with carbon companies incorporating cover crops, this could be a major cause of concern to growers with little or no experience with these systems. Costs associated with changes to production practices, from different planter equipment to managing cover crops, may or may not be offset by revenue generated through selling carbon credits. Farmers are also eligible for carbon markets with reductions or better utilization of synthetic nitrogen fertilizers.
To date, it is estimated that only about 1-2% of farms have enrolled in some type of private carbon market program. What are the reasons for the low enrollment and how can Extension be a source of reliable, researched based information to assist growers and landowners with this long-term management decision?
Ohio State University Extension surveyed farmers and consultants across Ohio to determine intent to enroll in carbon markets in the future. Growers indicate not having enough information as the number one reason they have not come to a decision to enroll. The survey also asked what other variables are preventing enrollment as well as information needs for making the enrollment decision.
Authors: Michael Estadt
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Michael Estadt Extension Educator, The Ohio State University Extension, Ohio, 43113