In the Spring of 2021, popular press articles were reporting on the opportunity and benefits of enrolling in pilot carbon programs across the U.S. Touting high payments, low enrollment costs, environmental benefits, and increased yields gained the attention of farmers and landowners. Numerous stakeholders contacted our department asking if we knew about carbon programs, what qualified, and whether they could receive payments for adopting carbon sequestering production practices. Given Kentucky stakeholders’ interest in learning about carbon markets, initial research into carbon markets occurred, resulting in an article for our departmental newsletter, “Economic and Policy Update.” Since this initial article, my work on carbon markets and the success of my extension program in this area has resulted in me being labeled one of the leading experts in the country on carbon market economics for crop and livestock producers and woodland owners. 

I always say that 90% of my job is educating farmers/stakeholders so they do not make bad decisions. Educating producers and landowners on the economics of carbon markets is a perfect example. While corporations, popular press, and other sources are pushing interest in enrolling farmers and landowners in carbon programs across the country, there is a high cost to the producers, limited eligibility to enroll, low payments, strict contractual arrangements, and inherent economic risks. This past winter, I surveyed a sample of attendees of my carbon market extension program (sample of 12 programs; n=127). Only 3% said they were interested in enrolling in a carbon market program in the next year, and 99% indicated they would seek legal counsel before enrolling in a carbon market program. Figure 1 below illustrates the knowledge gained on various topics and the ability to ask informed questions when approached by a project developer or direct buyer of carbon credits. 

Figure 1. Survey results on the knowledge of various carbon concepts before and after attending my carbon market extension program. Likert scale ratings: 1=Very Low, 2=Low, 3=Moderate, 4=High, 5=Very High. (n=127)