Perceived equity dimensions of agricultural carbon markets in the US Midwest

Public and private sectors are developing initiatives for carbon capture to mitigate climate change and meet net-zero emissions pledges. Capital markets facilitating the trading of credits for soil organic carbon have the potential to sequester carbon and provide monetary benefits to farmers, but critics contend this approach could exacerbate inequalities among farmers. We use recognition and distributive justice frames to analyze farmer perceptions of access and outcomes in voluntary carbon markets. Drawing on interviews with thirty farmers in the Midwestern United States (Illinois, Iowa, Minnesota, Missouri, and Wisconsin) and fourteen carbon market project developers, we argue many carbon credit programs reinforce perceived inequities within the US agricultural system and between on-farm and off-farm actors. Our respondents indicated carbon market actors tend to recognize large-scale, highly capitalized, conventional corn and soybean operations managed by white men, limiting market access for marginalized farmers and small farms. Exclusion of a range of farmers is perceived to perpetuate distributive injustice as carbon markets channel financial benefits to a narrow range of “winners” in the energy transition. Farmers specifically identified the additionality requirement as the greatest barrier to market access for small and marginalized farmers. Ultimately, farmers contend that creating more equitable carbon markets requires first and foremost recognizing the diversity of farmer identities and farm types. • Interviews identify the relationship between carbon markets and rural inequality. • Farmers are concerned markets will intensify capital accumulation in rural areas. • Large farmers have more market access than small and underrepresented farmers. • Project developers and credit buyers are perceived to benefit from on-farm labor. • Equitable markets need diverse recruitment and payments for legacy practices.