Carbon farming made easy.

We break things down into bite size steps

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The Basics

One carbon credit = the equivalent of 1 ton of carbon dioxide.

Put simply, a carbon credit is awarded when a landholder conducts a new activity that is measured and verified to have sequestered or reduced a tonne of carbon dioxide (CO2) equivalent. The aim of the game is to change the way you farm, in order to store carbon in the landscape and reduce your emissions.

 

A carbon credit is a financial product. You can hold them as an asset on your balance sheet for as long as you like, then you can either:

  • surrender them to the regulator to offset your own emissions (to be carbon neutral), or
  • sell them to someone else who wants to offset their emissions.

A carbon farming project is a step-by-step process to generate these carbon credits. Basically, you need to follow the rules of the certification program. That’s exactly where we come in.

The Opportunity

Tactical integration of carbon projects within a working farm can increase profitability and farm resilience.

Carbon farming is on its way to becoming a $50B new global opportunity for landowners and the carbon credit price has grown from $16 in 2019, to $45 at the end of 2021. This is an exciting new diversification opportunity for landowners, but it is just part of a bigger picture.

 

When done right, carbon projects increase farm profitability and resilience by:

  • capitalising on underutilised land,
  • diversifying revenue streams,
  • accessing carbon-neutral market opportunities,
  • reducing input costs,
  • enhancing soil health, and
  • increasing water retention.

The key is carefully integrating carbon farming within an existing production system by choosing the highest-and-best-use for each land area on a farm. Not by blanket planting wall-to-wall trees or taking valuable farmland out of production.

Project Stages

We break things into a simple step-by-step approach

3 – 6 months

1. Feasibility

Project scoping
Financial modelling
Risk assessment

2. Sign-off

Eligibility checks
Securing project finance
Offtake agreements
Service Agreements

6 - 12 months

3. Design & Planning

Detailed Planning
Approvals & Registration
Ordering and prep

4. Establishment

Site works
Planting / baselining
Documentation

10 - 25 years

5. MRV

Monitoring, reporting & verification
Property & project management
Credit issuance

6. Selling credits

Trading your carbon

Examples

300 Hectare native tree planting project in the Northwest Vic.

Over a 3,000Ha property, The project found 300 hectares for shelter-belts and wildlife corridors across the farm, with an average 25 year carbon yield of 200 Tons Ha.

 

The landowners can do site-prep (deep ripping) themselves and secured a grant for fencing costs. We support the landowners to administer the project using our easy-to-use software platform and DIY Services.

 

Results for the Landowner

  • Pays $195,500 in up-front project costs (funding available if needed)
  • Earns 49,000 carbon units over 25 years, worth $2.2M at a $45 carbon price.
  • Generates $2M gross profit, over 25 years.
  • Equates to $267 per hectare, per annum (after all fees and direct costs).

1,700 Hectare soil carbon project in the Eastern Wheatbelt of WA.

The farmer and her local agronomist worked together to design a new farm management program. Shifting from high input cereal cropping, towards a rotational grazing enterprise with multi-species perennial pasture. A biological inputs program was also implemented. This new management will be in place for 25 years.

 

Given the heavy reliance on long-term agronomic strategy, the farmer negotiated to pay the agronomist normal fees + a 5% long-term share of the carbon credits. CFF offer the DIY service package and software support for some modest fees and a 5% share of the carbon. The landowner retains 90% of the carbon credits in this example.

 

The project estimates that over 25 years it can increase SOC levels from 0.7% to 1.2% in the top 30cm.

  • This equates to 21 tons SOC per Ha, or 0.84 tons SOC per annum.
  • This converts to 3.08 Carbon Credits (CO2 equivalent) per hectare per annum.

Results for the Landowner:

  • Spends $120,000 up-front to cover soil baselining, mapping, registration, consultancy and third-party costs.
  • Allocates $400,000 over the first three years for pasture renovation ($235 ha), ongoing pasture improvement and other costs factored into farm OPEX.
  • Earns 82,467 carbon units* worth $3.7M at a $45 carbon price**.
  • Generates $2.6M gross profit over 25 years.
    • Equates to $61.50 per hectare, per annum.