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Farmer Adoption and Payment Design Under Risk: Variability in Soil Carbon Sequestration Across Conservation Practices -- by Khyati Malik
A new economics study examines how farmers make long-term decisions about adopting soil conservation practices like no-till farming when carbon sequestration generates payments. The research finds required carbon payments vary widely—from $8 to $32 per ton of carbon per year—depending on soil type and drainage conditions. The study highlights that sequestration risk and farmer preferences for consumption smoothing significantly affect the payment levels needed to incentivize adoption, calling fo