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Abstract Contemporary food and agricultural systems degrade soils, pollute natural resources, and contribute to greenhouse gas emissions. The waste output from these systems, however, can be repurposed as an agricultural input, reducing emissions associated with organics disposal while actively sequestering atmospheric carbon in soils—thus transitioning the sector from a carbon source to a carbon sink. This research estimates the near-term technical and economic potential of utilizing composted organic feedstocks as a soil amendment to mitigate climate change and improve long-term soil quality, in line with California’s organics diversion policies, by connecting food scraps and organics residuals in California’s municipal solid waste to existing infrastructure and working lands in the state. The multi-objective spatial optimization results indicate considerable carbon sequestration benefits in the range of −1.9 ± 0.5 MMT CO₂eq annually, by applying compost to 6 million hectares of California rangelands at a price of approximately $200 per ton, presenting a cost-effective climate change mitigation strategy within proposed federal sequestration credits. Expanding composting capacity is predicted to increase the total amount of carbon sequestered while reducing the cost per ton and per hectare treated. This model aids decision makers in considering the technical, economic, and institutional potential of actively managing the State’s organic materials in municipal waste streams for climate change mitigation.