An Economic Analysis of Carbon Sequestration for Wheat and Grain Sorghum Production in Kansas

This study examined the economic potential with and without carbon credit payments of two crop and tillage systems in South Central Kansas that could reduce carbon dioxide emissions and sequester carbon in the soil. Experiment station cropping practices, yield data, and soil carbon data for continuously cropped wheat and grain sorghum produced with conventional tillage and no-tillage from1986 to 1995 were used to determine soil carbon changes and to develop enterprise budgets to determine expected net returns for a typical dryland farm in South Central Kansas. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. Carbon credit payments may be critical to induce farm managers to use cropping practices, such as no-till, that sequester soil carbon. The carbon credit payments needed will be highly dependent on cropping system production costs, especially herbicide costs, which substitute for tillage as a means of weed control. The C values estimated in this study that would provide an incentive to adopt no-tillage range from $0 to$95.991ton/year, depending upon the assumption about herbicide costs. In addition, if producers were compensated for other environmental benefits associated with no-till, carbon credits could be reduced.carbon credit value, carbon sequestration, grain sorghum, no-tillage, wheat, Crop Production/Industries,

Derived Carbon Credit Values for Carbon Sequestration: Do CO2 Emissions From Production Inputs Matter?

Environmental Economics and Policy,

DERIVED CARBON CREDIT VALUES FOR CARBON SEQUESTRATION: DO CO2 EMISSIONS FROM PRODUCTION INPUTS MATTER ?

An economic analysis was conducted involving wheat and grain sorghum production systems that affect carbon dioxide emissions and sequester soil carbon. Parameters examined were expected net returns, changes in net carbon sequestered and the value of carbon credits necessary to equate net returns from systems that sequester more carbon to those that sequester less with and without adjustments for CO2 emissions from production inputs. Evaluations were based on experiment station cropping practices, yield, and soil carbon data for continuously cropped and rotated wheat and grain sorghum produced with conventional and no-tillage. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. However, no-till systems had higher total atmospheric emissions of C from production inputs. The differences were relatively small. The C values estimated in this study that would equate net returns of no-tillage to conventional tillage range from $7.82 to$58.69/ton/yr when C emissions from production inputs were subtracted from soil carbon sequestered and $7.79 to$54.99/ton/yr when atmospheric emissions were not considered.Environmental Economics and Policy,

Derived Carbon Credit Values for Carbon Sequestration: Do CO2 Emissions From Production Inputs Matter?

An economic analysis was conducted involving wheat and grain sorghum production systems that affect carbon dioxide emissions and sequester soil carbon. Parameters examined were expected net returns, changes in net carbon sequestered and the value of carbon credits necessary to equate net returns from systems that sequester more carbon to those that sequester less with and without adjustments for CO2 emissions from production inputs. Evaluations were based on experiment station cropping practices, yield, and soil carbon data for continuously cropped and rotated wheat and grain sorghum produced with conventional and no-tillage. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. However, no-till systems had higher total atmospheric emissions of C from production inputs. The differences were relatively small. The C values estimated in this study that would equate net returns of notillage to conventional tillage range from $7.82 to$58 .69/ton/yr when C emissions from production inputs were subtracted from soil carbon sequestered and $7.79 to$54.99/tonlyr when atmospheric emissions were not considered

An Economic Analysis of Carbon Sequestration for Wheat and Grain Sorghum Production in Kansas

This study examined the economic potential with and without carbon credit payments of two crop and tillage systems in South Central Kansas that could reduce carbon dioxide emissions and sequester carbon in the soil. Experiment station cropping practices, yield data, and soil carbon data for continuously cropped wheat and grain sorghum produced with conventional tillage and no-tillage from1986 to 1995 were used to determine soil carbon changes and to develop enterprise budgets to determine expected net returns for a typical dryland farm in South Central Kansas. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. Carbon credit payments may be critical to induce farm managers to use cropping practices, such as no-till, that sequester soil carbon. The carbon credit payments needed will be highly dependent on cropping system production costs, especially herbicide costs, which substitute for tillage as a means of weed control. The C values estimated in this study that would provide an incentive to adopt no-tillage range from $0 to$95.991ton/year, depending upon the assumption about herbicide costs. In addition, if producers were compensated for other environmental benefits associated with no-till, carbon credits could be reduced

DERIVED CARBON CREDIT VALUES FOR CARBON SEQUESTRATION: DO CO2 EMISSIONS FROM PRODUCTION INPUTS MATTER ?

An economic analysis was conducted involving wheat and grain sorghum production systems that affect carbon dioxide emissions and sequester soil carbon. Parameters examined were expected net returns, changes in net carbon sequestered and the value of carbon credits necessary to equate net returns from systems that sequester more carbon to those that sequester less with and without adjustments for CO2 emissions from production inputs. Evaluations were based on experiment station cropping practices, yield, and soil carbon data for continuously cropped and rotated wheat and grain sorghum produced with conventional and no-tillage. No-till had lower net returns because of lower yields and higher overall costs. Both crops produced under no-till had higher annual soil C gains than under conventional tillage. However, no-till systems had higher total atmospheric emissions of C from production inputs. The differences were relatively small. The C values estimated in this study that would equate net returns of no-tillage to conventional tillage range from $7.82 to$58.69/ton/yr when C emissions from production inputs were subtracted from soil carbon sequestered and $7.79 to$54.99/ton/yr when atmospheric emissions were not considered