Carbon farming made easy

Helping farmers through the carbon farming process.

The Basics

Carbon Farming 101.

Carbon farming is the practice of reducing carbon emissions into the atmosphere by storing carbon (CO2e) in the landscape, specifically in vegetation and soil. There is a variety of carbon farming methods that you can integrate into your existing farming operation, such as planting trees and vegetation to store carbon in the landscape or changing property management to store carbon in your soil.

In Australia, carbon farming activities that comply with specific vegetation or agricultural-based methodologies are usually registered as projects under the Emissions Reduction Fund. If your project meet the ERF eligibility requirements, you can earn Australian Carbon Credit Units (ACCU). For every tonne of CO2e (carbon dioxide equivalent) you store in the landscape, you generate a carbon credit.

The Opportunity

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

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.

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

Self-assessment
Securing project finance
Offtake agreements (if required)
Service agreements

6 - 12 months

3. Design & Planning

Detailed planning
Project approvals and registration
Design optimization and mapping

4. Implementation

Emissions baselining
Practical implementation
Record keeping

10 - 25 years

5. Management

Implementation management
Audits
Monitor, measure, report

6. Selling credits

Credit issuance
Trading or retirement of carbon units

Examples

200 Hectare Reforestation Project on a 3,000 Hectare Property in New England, NSW

Project Strategy:

Plant shelter belts and wildlife corridors. Trees in the ground for 25 years or more.

Project Goal:

Drawdown 369 tonnes of carbon per Ha across project lifetime (FullCAM modelled yield).

DIY Opportunity:

To reduce costs, landowner will do site-prep and are taking on project coordination.

Results for the Landowner

Average carbon price over 25 years**	$35	$55
Landowner carbon units over 25 years*	46,070	46,070
Gross profit at 25 years	$1.1M	$2M
Gross profit per hectare per annum, over 25 years	$219	$403
Cost to produce each carbon credit	$11.22	$11.22
Upfront cost	$339k	$339k
Additional lifetime costs	$179k	$179k

* Factors CFF’s incentive fees at the time of publication.

**See www.accus.com.au to make your own price assumptions.

2,000 Hectare Soil Carbon Project on a 9,700 Hectare Property in WA's Great Southern Region

Project Strategy:

Planned stubble retention, no till practices, multi-species perennials, rotational grazing and the application of nutrients across 25 years over a 9,700 Ha property.

Project Goals:

Increase soil organic carbon by 0.42% across project lifetime, drawing down 20 tonnes of carbon per Ha.

DIY Opportunity:

To reduce costs, the landowner will write their own Land Management Strategy using CFF template, coordinate the project and keep detailed project records to limit consultant site visits.

Results for the Landowner

Average carbon price over 25 years**	$35	$55
Landowner carbon units over 25 years*	95,878	95,878
Gross profit at 25 years	$2.5M	$4.4M
Gross profit per hectare per annum, over 25 years	$50.17	$88.52
Cost to produce each carbon credit	$8.84	$8.84
Upfront cost	$151k	$151k
Additional lifetime costs	$696k	$696k

* Factors CFF’s incentive fees at the time of publication.

**See www.accus.com.au to make your own price assumptions.

1500 Hectare Plantation Forestry Project in on a 1800 Hectare Project in the Central Tablelands, NSW

Project Strategy:

Establish a new 14-year (short-rotation) pine plantation. Plantation activities to be maintained for 25 years or more.

Project Goals:

Drawdown 268 tonnes of carbon per Ha across project lifetime (FullCAM modelled yield).

DIY Opportunity:

To reduce costs, landowner will coordinate the project.

Results for the Landowner

Average carbon price over 25 years**	$35	$55
Landowner carbon units over 25 years*	232,082	232,082
Gross profit at 25 years	$7.8M	$12.5M
Gross profit per hectare per annum, over 25 years	$232	$370
Cost to produce each carbon credit	$1.20	$1.20
Upfront cost	$21k	$21k
Additional lifetime costs	$261k	$261k

*  Factors in CFF’s incentive fees at the time of publication.

**See www.accus.com.au to make your own price assumptions.