The Central Appalachian region, where family forest landowners (FFLs) control much of the carbon sequestration potential, holds the potential for forest-based climate solutions. Despite this, participation in carbon offset programs remains low, largely due to the disconnect between small landowner needs and program structure. This study examines FFL preferences for carbon programs in Central Appalachia. Utilizing a panel-data mixed logit model, we evaluated the effects of contract length, payment amount, harvest requirements, and program administration on participation decisions. Our results indicate that higher payments significantly increase program participation. Furthermore, contract lengths of at least 15 years and restrictive harvests negatively influence program participation. Program administration played a significant role, with government-administered programs being less preferred, with odds 48% lower than privately administered programs. Landowner characteristics such as carbon-oriented ownership, education, and income also influence participation. The willingness-to-accept analysis shows high compensation demands for less favorable terms: $107–$397/ha/year for longer contracts and $104–$173/ha/year for harvest restrictions. Additionally, landowners require an extra $66/ha/year for government administration. The findings underscore the importance of designing carbon offset programs that are flexible, offer adequate compensation, and foster trust, while aligning with landowners’ management objectives.