This paper presents the results of a multi-scale investigation of environmental change in the Old Peanut Basin of Senegal throughout the 20th century. Based on historical accounts, ethnographies, aerial photos, satellite images, field and household surveys as well as various participatory research activities with farmers in selected villages, the study attempts to make explicit layered scales of analysis, both temporally and spatially. It shows that, despite some general trends of resource degradation in the Old Peanut Basin, local farming systems have embarked on different pathways of change to adapt to their evolving environment. It also illustrates that high diversity with respect to soil fertility management exists at the farm and household level. Finally, the paper proposes a farmer-oriented approach to carbon sequestration in order to integrate recommended technical options more efficiently into the complex and dynamic livelihoods of smallholders in dryland environments. This approach includes pathway-specific land use and management options at the level of farming systems and, at the level of individual households, a basket of possible practices from which farmers can choose depending on their multiple needs, capacities, and adaptive strategies to cope with risk and uncertainty.