Evaluating the potential financial contributions of carbon farming to grazing enterprises in Western NSW

This article reports on modelling of the farm-level financial implications of changing land use from rangelands grazing to ‘carbon farming’ (vegetation-based carbon sequestration) in north-western New South Wales, Australia. Four model farm businesses were created by combining information from existing carbon projects funded under the Australian Government’s Emissions Reduction Fund (ERF), data from surveys of farm businesses in the study regions and biomass estimations from the pasture growth model, GRASP. Scenarios for each of the businesses were: baseline (current grazing system); clearing vegetation to increase carrying capacity; establishing a carbon project; and establishing a carbon project and reinvesting some of the additional income in exclusion fencing to increase carrying capacity on non-project areas. The carbon project scenarios were based on either of two approved carbon sequestration methodologies within the ERF: avoided deforestation; and human-induced regeneration. In comparing the financial outcomes of these scenarios across the modelled businesses, we found potential advantages for landholders in having projects where livestock carrying capacity was at medium to low levels for the study region and where woody vegetation biomass potential was medium to high for the region. The case for sequestration projects on land with higher carrying capacity and therefore higher opportunity cost was much less compelling. In most cases, reinvestment in exclusion fencing resulted in similar financial returns to just having a carbon project but farm business income increased in later years.

Open woodland tree and shrub dynamics and landscape function in central Queensland after killing the trees with herbicide

Herbicides are used in savanna to control tree and shrub density, primarily to maintain the value of the country for pastoral enterprises. However, the concomitant effects on biodiversity and landscape functioning need to be recognised and better understood. This study monitored tree and shrub dynamics and eventual landscape functionality in response to tree-killing over 7–8 years at two open eucalypt woodland sites in central Queensland. Paddocks denuded of trees using herbicide or not so treated were subject to three differing grazing pressures by cattle. Similarly treated but ungrazed sets of plots were subjected to either regular spring burns or were rarely burnt. Tree and shrub growth and seedling recruitment were slightly affected by grazing pressure but regular spring burns minimised recruitment of minor woodland species and reduced the population of original saplings and seedlings that survived the herbicide. Few eucalypt seedlings emerged from soil surface samples taken each spring in any treatment, despite the presence of flowering trees in half the treatments. Capture and retention of resources, particularly rainfall and nutrients, were slightly improved by killing the trees, and worsened by grazing. We conclude that killing trees with herbicide at these sites did not adversely affect landscape function and that woody species regeneration was almost inevitable on these open eucalypt woodland native pastures.

Bioeconomic modelling of woody regrowth carbon offset options in productive grazing systems

Agricultural land has been identified as a potential source of greenhouse gas emissions offsets through biosequestration in vegetation and soil. In the extensive grazing land of Australia, landholders may participate in the Australian Government’s Emissions Reduction Fund and create offsets by reducing woody vegetation clearing and allowing native woody plant regrowth to grow. This study used bioeconomic modelling to evaluate the trade-offs between an existing central Queensland grazing operation, which has been using repeated tree clearing to maintain pasture growth, and an alternative carbon and grazing enterprise in which tree clearing is reduced and the additional carbon sequestered in trees is sold. The results showed that ceasing clearing in favour of producing offsets produces a higher net present value over 20 years than the existing cattle enterprise at carbon prices, which are close to current (2015) market levels (~$13 t–1 CO2-e). However, by modifying key variables, relative profitability did change. Sensitivity analysis evaluated key variables, which determine the relative profitability of carbon and cattle. In order of importance these were: the carbon price, the gross margin of cattle production, the severity of the tree–grass relationship, the area of regrowth retained, the age of regrowth at the start of the project, and to a lesser extent the cost of carbon project administration, compliance and monitoring. Based on the analysis, retaining regrowth to generate carbon income may be worthwhile for cattle producers in Australia, but careful consideration needs to be given to the opportunity cost of reduced cattle income.

Climate Clever Beef: options to improve business performance and reduce greenhouse gas emissions in northern Australia

The Rangeland Journal – Climate Clever Beef special issue examines options for the beef industry in northern Australia to contribute to the reduction in global greenhouse gas (GHG) emissions and to engage in the carbon economy. Relative to its gross value (A$5 billion), the northern beef industry is responsible for a sizable proportion of national reportable GHG emissions (8–10%) through enteric methane, savanna burning, vegetation clearing and land degradation. The industry occupies large areas of land and has the potential to impact the carbon cycle by sequestering carbon or reducing carbon loss. Furthermore, much of the industry is currently not achieving its productivity potential, which suggests that there are opportunities to improve the emissions intensity of beef production. Improving the industry’s GHG emissions performance is important for its environmental reputation and may benefit individual businesses through improved production efficiency and revenue from the carbon economy. The Climate Clever Beef initiative collaborated with beef businesses in six regions across northern Australia to better understand the links between GHG emissions and carbon stocks, land condition, herd productivity and profitability. The current performance of businesses was measured and alternate management options were identified and evaluated. Opportunities to participate in the carbon economy through the Australian Government’s Emissions Reduction Fund (ERF) were also assessed. The initiative achieved significant producer engagement and collaboration resulting in practice change by 78 people from 35 businesses, managing more than 1 272 000 ha and 132 000 cattle. Carbon farming opportunities were identified that could improve both business performance and emissions intensity. However, these opportunities were not without significant risks, trade-offs and limitations particularly in relation to business scale, and uncertainty in carbon price and the response of soil and vegetation carbon sequestration to management. This paper discusses opportunities for reducing emissions, improving emission intensity and carbon sequestration, and outlines the approach taken to achieve beef business engagement and practice change. The paper concludes with some considerations for policy makers.