Set my best looking coyote set and they will turn it into a crater.
In all seriousness use the same setup you would for a coyote. A dirthole would work just fine. Keep your sets in areas where they are obviously working. Make sure you are well staked and have enough chain for them to get away from the stake. They will dig at the end of the chain and pile it in the middle.
+1 on this comment. Set your best *set* for coyote and you will catch a badger. Those suckers can tear up a ton of sagebrush and dirt in short order.
