The Benefits of Carbon Farming

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There’s been a lot of buzz about carbon farming in recent years. That’s why we’re breaking down how it can benefit your farming business.


Ok, let’s go back to the beginning.


What is carbon farming exactly?

Carbon farming is basically capturing and storing carbon within working farms or landscapes. This is achieved by integrating farming practices that improve the rate at which CO2 is captured from the atmosphere and returned to plant material or organic soil matter. 


Within a farm system, carbon is the carrier of solar energy that fuels the ecosystem. When you build carbon in your soil, not only do you remove it from the atmosphere (this process is called carbon sequestration), but you also energise the ecological systems that are at work in your land. In doing so, soil fertility increases, leading to higher productivity, improved drought resilience, and healthier land, soil and produce. 


You can learn more about the carbon cycle here


Why should I jump on the carbon farming train? 

Carbon farming has been proven to create more productive and resilient farming systems. It also opens the door for all landowners to enter a new market – the carbon market. Carbon farming is an opportunity to explore carbon neutrality and the benefits it may bring to your business. Understand more about carbon neutrality here.


Improve the health of your farm 

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.

Basically, it’s a win-win situation. By incorporating carbon farming & regenerative farming practices into their land management strategy, landholders can reduce carbon emissions across their businesses and improve the health of their soils, crops & paddocks. 


Diversify your Farm’s Revenue Stream

Essentially, carbon farming and generating carbon credits is a way for you to diversify your farm’s income stream whilst also enhancing the health and resilience of soils, crops, and paddocks.


Let’s back it up… how do carbon credits work?

In Australia, carbon credits are usually issued by the CER (Clean Energy Regulator) to a project proponent when it is proved that CO2e has been successfully stored in the landscape. One carbon credit equates to one tonne of CO2e stored. Carbon credits can be held, or sold to the government, individuals or companies who are looking to offset their emissions.


The key is strategically integrating carbon projects into an existing farming system. So, you then have an extra revenue stream in addition to your profits from your existing food & fibre production systems.


What do you mean by strategic integration? 

Strategic integration is when you implement carbon projects across your farm that either complement your existing farming activities (for example, planting shelterbelts in your active livestock areas or around your crops) or utilising under-optimised pockets of land!


Hit Your Carbon Neutral Targets 

The cherry on top is that carbon farming is an opportunity for farming businesses to achieve carbon neutrality. As the world strives towards net-zero, consumers & stakeholders have started valuing carbon neutrality. 


By undertaking a carbon project, you can effectively measure how many tonnes of CO2e you are removing from the atmosphere and storing across your farm. This makes it easier for farming businesses to measure their steps towards carbon neutrality, hit their sustainability targets and meet the expectations of their stakeholders. 


What’s next?

Take a look at how you can reduce the risks associated with carbon farming here.


Ok, this all sounds promising! How can I learn more about carbon farming?

Explore our range of educational resources in our Carbon Farming Education Hub where we frequently publish educational articles, webinars, and guidebooks. 


When you’re ready to explore the feasibility of undertaking a carbon project on your property, email us at or give us a bell at (08) 6835 1140 to be connected with one of our project facilitators.


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The Carbon Farming Foundation (ABN 67 645 498 004) is a Corporate Authorised Representative (AFS Representative No.001298535) of True Oak Investments Ltd (ABN 81 002 558 956, AFSL 238184).

The information on this website is general financial product advice only. It does not take your personal financial objectives, situation or needs into consideration. We recommend that you read our Financial Services Guide and consider seeking independent advice before making a financial decision.