In the ever-evolving landscape of U.S. agriculture, a recent study sheds light on the transformative shift toward climate-smart agricultural and forestry practices (CSAF). This research, led by Jeffrey K. O’Hara from the U.S. Department of Agriculture’s Office of the Chief Economist, delves into how incentives for CSAF have transitioned over the years—from offset markets to biofuel regulations.
O’Hara’s experience is particularly rich, having played a pivotal role in developing CSAF offset protocols during his tenure at the Chicago Climate Exchange between 2007 and 2010. Fast forward to 2022–2024, and he found himself at the USDA, where he contributed to the creation of a climate-smart agriculture pilot protocol aimed at sustainable aviation fuel. This dual perspective gives him a unique lens through which to examine the evolution of CSAF incentives.
Two decades ago, the notion of biofuel mandates was a mere flicker on the horizon. Now, with CSAF practices being integrated into biofuel regulations, farmers and agribusinesses are poised to reap significant benefits. “Greenhouse gas emissions from agricultural and forestry practices are already included in the baseline of biofuel regulations,” O’Hara explains. This is a game changer, as it sidesteps the additionality issues that have long stymied the development of CSAF offset standards.
O’Hara provides a closer look at specific case studies, including agricultural soil carbon, livestock digester, and forest carbon protocols. These examples not only illustrate the practical applications of CSAF but also highlight the commercial opportunities that arise from adopting these practices. As farmers embrace carbon farming techniques and invest in livestock digesters, they stand to gain not only from improved sustainability but also from potential financial incentives tied to carbon credits.
The implications for the agriculture sector are profound. By aligning farming practices with climate goals, producers can enhance their marketability and potentially tap into new revenue streams. This shift not only supports environmental sustainability but also positions farmers as key players in the broader conversation about climate change and energy.
As O’Hara notes, “The evolution of CSAF crediting is exciting, and we’re just scratching the surface.” Looking ahead, the integration of climate-smart practices into mainstream agriculture could pave the way for even more robust incentives, driving innovation and sustainability in the sector.
This research, published in the *Agricultural and Resource Economics Review*—which translates to “Agricultural and Resource Economics Review” in English—offers a roadmap for the future of farming. As the industry adapts to these changes, the potential for growth and sustainability becomes increasingly clear. For more insights on this topic, you can check out the USDA’s Office of the Chief Economist at lead_author_affiliation.