Agricultural management practices are changing in remarkable ways to address an increasing world need for food security and global climate change. By 2050, agricultural production may have to double according to predictions by The United States Department of Agriculture. To achieve such increased output, more expensive and reactive chemicals, water, and energy will be necessary under conventional methods. Intensification of conventional farming under climate change is expected to be detrimental for agricultural productivity, farm economics, and agroecosystem services. However, there are new challenges and opportunities emerging with the advent of expanding science-based knowledge, technology and information systems that are leading to envisioning an agricultural renaissance in the 21st century to improve farm productivity and economics. Climate-smart agriculture based on novel and holistic approaches of conservation tillage, cropping diversity including cover crops (legumes), residue mulching, fertigation, and chemical growth enhancement have potentially higher and more consistent economic returns over time. The objective of this presentation is to evaluate on-farm economic factors and mitigation benefits of climate-smart agricultural production and their cost-effectiveness to be used as a priority for policy incentives. Switching from conventional to climate-smart agriculture may have potential to improve economic returns and mitigation benefits to a greater degree in dry and semi-dry regions of the world than in more temperate regions.