Misalignment in Carbon Credit Programmes: Insights From Producer Preferences for Cover Crop and No-Till Contracts

Abstract

This study examines the factors influencing producer adoption of cover cropping and no-till farming, two key carbon sequestration practices, within the context of voluntary carbon credit programmes (CCPs) in Kansas. Using a mixed-methods survey that combines discrete choice experiments with farm-level data from 370 producers, we estimate random-parameter latent class models to assess preferences over contract design, payment levels and agri-environmental constraints. Findings reveal substantial misalignments between current CCP structures and producer needs: nearly half of respondents consistently rejected all contract offers, while those most willing to enrol were often already using the promoted practices, raising concerns about the additionality of these initiatives. Key barriers include long contract durations, insufficient payments and agri-environmental limitations such as drought and wheat-based rotations. These results highlight the need for more flexible, regionally tailored carbon programmes and provide actionable insights for policymakers seeking to enhance the adoption and climate impact of agricultural carbon sequestration initiatives.