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Soil Carbon Sequestration Strategies with Alternative Tillage and Nitrogen Sources under Risk

Listed author(s):
  • Dustin L. Pendell
  • Jeffery R. Williams
  • Scott B. Boyles
  • Charles W. Rice
  • Richard G. Nelson

This study examines the economic potential of using either no-tillage or conventional tillage with either commercial nitrogen or cattle manure to sequester soil in continuous corn production. This research uses stochastic efficiency with respect to a function to determine the preferred production systems under various risk preferences and utility-weighted certainty equivalent risk premiums to determine the carbon credit values needed to motivate adoption of systems, which sequester higher levels of carbon. The results indicate that no-tillage and cattle manure increase carbon sequestration. Carbon credits or government program incentives are not required to entice risk-averse managers to use no-tillage, but are required to encourage manure use as a means of sequestering additional carbon even at historically high nitrogen prices. New environmental rules for confined animal feeding operations may increase the demand for land to apply manure as a primary nutrient source and participation in the Environmental Quality Incentives Program, Conservation Security Program, and a carbon credit market to obtain payments to offset some or all of the costs of manure application. Copyright 2007, Oxford University Press.

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Article provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.

Volume (Year): 29 (2007)
Issue (Month): 2 ()
Pages: 247-268

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Handle: RePEc:oup:revage:v:29:y:2007:i:2:p:247-268
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