Voluntary adoption of beneficial management practices will be the primary means by which farmers cat net greenhouse gas (GHG) emissions. The offset system will not be a major driver clue to (a) the relatively low prices likely to be offered by large final emitters facing an emission cap, (b) discounts applied to those prices for temporary sequestration, (c) the transaction costs and risk premiums associated with signing carbon contracts, and (d) the low elasticity of supply CO2 abatement. Although Canadian farmers are likely to participate to only a limited extent in the carbon-offset market, many will find it profitable to adopt one or more of the BMPs for reducing net GHG emissions. Canadian agriculture is likely to contribution significantly to net emission on reductions by voluntarily sequestering carbon due to the adoption of zero till in the last decade, and possibly by cutting fertilizer levels in the next decade. The contribution will be mainly a response to meeting personal economic objectives rather than being induced by direct incentives through the offset Program.
