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What are the carbon services from cover‐crop adoption worth from farmers' perspective?

Author

Listed:
  • Saurav Raj Kunwar
  • Robert G. Chambers
  • Laura F. Gentry
  • Teresa Serra

Abstract

We derive shadow prices of carbon services provided by cover crops relative to non‐cover‐crop agricultural practices, accounting for carbon sequestration and greenhouse gas (GHG) emissions. We model the agricultural technology by integrating crop production, carbon sequestration, and GHG emissions. We derive a novel function representation of our technology using a data envelopment analysis (DEA). We then calculate shadow prices based on the dual representation of the technology and compare shadow prices between cover‐crop and non‐cover‐crop fields. We find that the carbon sequestration and the GHG emissions reduction services from cover‐crop fields relative to non‐cover‐crop fields are worth USD 17.88 and USD 9.42 per acre, respectively. We compare shadow prices to payments from an incentive program aimed at promoting cover‐crop adoption, thereby highlighting the economic feasibility and potential barriers to adopting sustainable practices.

Suggested Citation

  • Saurav Raj Kunwar & Robert G. Chambers & Laura F. Gentry & Teresa Serra, 2026. "What are the carbon services from cover‐crop adoption worth from farmers' perspective?," American Journal of Agricultural Economics, John Wiley & Sons, vol. 108(3), pages 901-925, May.
    • Handle: RePEc:wly:ajagec:v:108:y:2026:i:3:p:901-925
    DOI: 10.1111/ajae.70005
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