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Sustainable coffee production faces growing environmental and economic pressures, particularly under climate change and volatile markets. This study examines Honduran coffee farmers’ willingness to adopt sustainable land-sparing practices that integrate natural forests into production systems. Using a discrete choice experiment with 600 farmers in the Yoro region, we estimated preferences for carbon payments, coffee price premia, and technical training. Results show that financial incentives strongly influence adoption, with compensation requirements rising, the proportion of farmland allocated to forest increases. Farmers with higher incomes, existing forest cover, or prior experience with sustainable methods were more willing to participate. In contrast, lower-income farmers required greater payments due to risk aversion and opportunity costs. Findings highlight the importance of incentive structures that combine economic rewards with technical support, providing valuable insights for policies and programs that promote sustainable coffee landscapes in Central America. 

Coffee production in Central America provides a valuable yet volatile source of income for hundreds of thousands of small-scale farmers and employment for millions of workers. Expansion of coffee production into previously forested areas has caused the loss of a wide range of valuable ecosystem goods and services while contributing to global climate change and socioeconomic instability. Growth in carbon markets in agricultural settings and production of specialty coffees to meet consumer demands for products that support environmental and community outcomes suggests promise for favorable change. Yet, the incentives required to promote widespread transition toward sustainable coffee production are poorly understood, leaving policymakers with insufficient information to design scalable forest conservation initiatives. To fill this gap, we use a discrete choice experiment administered to coffee farmers in Honduras to understand farmers' willingness to conserve natural forest on farmlands in exchange for higher coffee prices and payments from carbon credits. Results suggest that payments for ecosystem services are a viable option for improving the sustainability of coffee production. However, coffee farmers may be reluctant to set aside significant percentages of the landscape for forest restoration. Low-income farmers appear more averse to forest conservation, suggesting the need for insurance against revenue losses.