Farmers' Willingness to Participate in a Carbon Sequestration Program - A Discrete Choice Experiment

Area of Science:

• Agricultural Science
• Soil Science
• Environmental Science

Background:

• Global warming mitigation requires carbon dioxide removal from the atmosphere.
• Agricultural soils can sequester carbon through humus formation.
• Financial incentives via humus programs aim to increase farmer participation in carbon sequestration.

Purpose of the Study:

• To analyze the willingness of German farmers to participate in hypothetical humus programs.
• To identify factors influencing farmer participation and preferences for program design.
• To inform the development of effective carbon sequestration policies in agriculture.

Main Methods:

• Discrete choice experiment utilized to assess farmer preferences.
• Analysis of factors discouraging participation, such as payout thresholds and repayment risks.
• Evaluation of the impact of premium levels and reference values on participation willingness.

Main Results:

• Payout thresholds, regional reference values, and repayment risks significantly deter farmer participation.
• Premiums need to more than double (from ~€240/ha) to maintain participation with a payout threshold.
• Farmer motivation, subsidy maximization, and livestock density positively influence participation; farm size and risk attitude affect design preferences.

Conclusions:

• Humus programs require careful design to ensure farmer engagement in carbon sequestration.
• Policy recommendations include optimizing premium levels, reference values, and risk management.
• Targeted program designs are crucial for efficient agricultural carbon management and climate change mitigation.