The Australian Government’s Carbon Farming Initiative provides carbon credit incentives for farmers to encourage climate change mitigation on agricultural land. In addition to carbon sequestration or reduced emissions, carbon farming activities often generate ancillary benefits, such as creation of native habitat or erosion prevention. We conduct a choice experiment study to estimate community values for climate change mitigation, and the ancillary effects of carbon farming. Respondents’ WTP depends on their perceptions of climate change and on age, income and political preferences. Respondents who believe in climate change are willing to pay $7.56 per 1% reduction in Australia’s overall greenhouse gas emissions. Respondents are willing to pay $16.88 per 1% increase in the area of native vegetation on farmland, and $2.89 per 1% reduction in soil erosion. The value estimates will allow for more targeted development of carbon farming policies.