This paper discusses a study that used biophysical and economic simulation models to assess farmers' involvement in soil carbon contracts in the Nioro region of Senegal's Peanut Basin. The analysis incorporated climate and soil data with multiple scenarios of fertilizer use and crop residue incorporation to estimate potential for carbon sequestration under different parameters. This provided the basis for simulating carbon payment schemes in which farmers could be paid for applying higher levels of fertilizer and incorporating their crop residues. Although the results suggest that it is possible to sequester marketable amounts of carbon in the Nioro region, there was insufficient data on labor costs, transaction costs, and opportunity costs associated with crop residue incorporation. Thus, data collection before the economic potential for carbon sequestration in the region can be fully assessed and carbon contracts can be developed and implemented.