This brief presents results of a study to measure the costs of carbon storage on farms in the Philippines. The Philippines ranks seventh among the top twenty tropical countries in ability to sequester carbon. The method used in this study relies on a three-step process to assess the costs of sequestering carbon over a 10- year horizon. First, a measure of the value of land to farmers is derived. This is based on current and predicted agricultural land uses. Second, the potential for lands of different qualities to sequester carbon over time is measured, based on conversion to forest and agroforest systems. Third, the annual payments necessary to compensate farmers for changes in land use to sequester carbon are calculated. These payments, converted to present value terms, constitute the potential cost of sequestering carbon through changes in land use.