The objective of the research is to determine the impact of carbon sequestration incentive in managed forestland and biofuel mandates on land use in Utah. Utah Agricultural Land Use model, steady-state partial equilibrium land use model, is developed to simulate carbon sequestration incentive and biofuel mandates. When a carbon price is $100 (approximately $45/ton of biomass) managed forestland in Utah would be doubled and biomass area would reach 270,645 acres which produces 1.5 million tons of biomass. Most of biomass area come from hay area.