Balancing Tradeoffs in Climate-Smart Agriculture: Will Selling Carbon Credits Offset Potential Losses in the Net Yield Income of Small-Scale Soybean ( Glycine max L.) Producers in the Mid-Southern United States?

Adrienne L. Contasti (), Alexandra G. Firth (), Beth H. Baker (), John P. Brooks (), Martin A. Locke () and Dana J. Morin ()
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Adrienne L. Contasti: Department of Wildlife, Fisheries and Aquaculture, Mississippi State University, Mississippi State, Mississippi 39762
Alexandra G. Firth: Department of Wildlife, Fisheries and Aquaculture, Mississippi State University, Mississippi State, Mississippi 39762
Beth H. Baker: Department of Wildlife, Fisheries and Aquaculture, Mississippi State University, Mississippi State, Mississippi 39762
John P. Brooks: United States Department of Agriculture-Agricultural Research Service, Genetics and Sustainable Agriculture Unit, Mississippi State, Mississippi 39762
Martin A. Locke: United States Department of Agriculture-Agricultural Research Service, National Sedimentation Laboratory, Oxford, Mississippi 38655
Dana J. Morin: Department of Wildlife, Fisheries and Aquaculture, Mississippi State University, Mississippi State, Mississippi 39762

Decision Analysis, 2023, vol. 20, issue 4, 252-275

Abstract: There is a need to achieve sustainable agricultural production to secure food, fiber, and fuel for a growing global population. Climate-smart (CS) actions (no-till and cover crops) can reduce carbon emissions and promote soil organic carbon (SOC) storage. Contemporary voluntary carbon markets provide producers with a monetary incentive to adopt CS actions. However, SOC–yield dynamics under CS actions are not well known, making it difficult for producers to judge whether additional income from carbon credits will offset potential losses to yield income. We designed a SOC–yield framework that captures SOC–yield–income dynamics under traditional (reduced tillage, no cover crops) and CS actions. Using a modified structured decision-making approach, we applied the framework to a case study in which producers aim to increase income by selling carbon credits after adopting CS actions. Specifically, we demonstrated how to balance tradeoffs between yield and carbon credit income that arise from tillage and winter cover crop actions (cereal rye, Secale cereale L. and crimson clover, Trifolium incarnatum L.) in a soybean ( Glycine max L.) production system in Mississippi. Results indicated that a producer could minimize losses to net yield income by adopting no-till if already using cover crops. There was also evidence that carbon credit income could offset losses to yield income when adopting CS in place of traditional actions. Identifying risks to yield income and SOC storage can help design carbon neutrality policies that have minimum impact on a producer’s income.

Keywords: climate-smart agriculture; tillage; cover crops; voluntary carbon market; soil organic carbon (search for similar items in EconPapers)
Date: 2023
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