Agricultural Carbon Sequestration: Incentives, Contracts, and Impacts on Water Resources in the Texas High Plains

Highlights The broad scope of CSA may hinder the development of projects that include agricultural mitigation strategies. The state of soil carbon contracts and offset markets could limit engagement in carbon initiatives by THP producers. Climate-smart practices aimed at carbon sequestration in the THP may offer co-benefits for water conservation, helping to alleviate pressures on limited water resources. Mitigation initiatives should consider regional climatic and economic conditions in future development. ABSTRACT. Agricultural production in the Texas High Plains (THP) has the potential to sequester carbon and mitigate increasing emissions levels, but the semi-arid climate in the region poses challenges such as limited precipitation and dwindling groundwater resources. This review examines the potential for agricultural carbon sequestration in the THP, producer incentives for engaging in carbon related initiatives, key attributes of soil carbon contracts, and the relationship between climate-smart agriculture (CSA) and water conservation. The review highlights the importance of considering regional climatic and economic conditions in advancing CSA and recognizes the current state of carbon contracts as a barrier to producer participation in carbon sequestration initiatives. Moreover, as water becomes increasingly scarce in the THP, the integration of water conservation strategies with carbon sequestration projects may enhance economic and environmental sustainability in the region. The review underscores the importance of regionally tailored strategies when developing both CSA and carbon sequestration initiatives to address unique environmental concerns while supporting long-term economic feasibility and agricultural sustainability. Keywords: Carbon contracts, Carbon sequestration, Climate-smart agriculture, Economics, Incentives, Ogallala aquifer, Soil carbon, Texas high plains, Water conservation.