1. Carbon Farming
Richard Eckard
Jamberoo NSW
March 26th 2012

2. Agricultural Greenhouse Gas Emissions
Australia 2009
Field Burning of
Agricultural
Nitrous oxide Prescribed
Residues, 0.4
• Agriculture
Burning of
Savannas, 14.3
– 57% of all methane
– 73% of all nitrous oxide
• Enteric Methane
Agricultural
Soils, 16.7
Enteric
Rice
Fermentation,
64.6
– 11% of National emissions
• Nitrous Oxide from soils
Cultivation, 0.1
Manure
Management,
3.9 – 2.5% of National emissions
Methane
Methane and nitrous oxide represent two of the biggest inefficiencies in agriculture
DCC 2011

3. Typical Farm Emissions
N2O - Dung,
Urine & Spread
10%
N2O - Dung,
N2O - Indirect Urine
11% N2O - 12%
Indirect
6%
N2O - N
Fertiliser N2O - N
4% Fertiliser
CH4 - Effluent 0%
ponds
1%
CH4 - Enteric
74%
CH4 -
Enteric
N2O - Effluent 82%
ponds Dairy Beef
0%
3 - 7 t CO 2 e/cow 2 t CO2e/steer
CH4 - Burning
4 – 45 t CO 2 e/ha 2 – 3 t CO 2 e/ha
N2O - Burning
8 – 21 t CO 2 e/t MS 6 – 7 t CO2e/t beef
N2O - Crop residues
N2O - Indirect
leaching
N2O - Indirect
Grains ammonia
N2O - N Fertiliser
0.2 - 1 t CO2e/ha
0.04 t/CO2e/t grain N2O - N2 fixation
Eckard, Grainger & de Klein 2010; Browne et al. 2011

4. The Carbon Farming Initiative
• Landholders can receive carbon credits for:
– Reducing methane and nitrous oxide emissions.
– Increasing the carbon stored in soils and vegetation.
• People and businesses can buy CFI credits to offset their
emissions.
• Participation is voluntary.

5. Types of CFI offsets
Kyoto-Protocol
offsets Mandatory carbon market
• Eligible forestry • Higher priced ($23/t?)
• Methane • 500 businesses facing tax
• Nitrous oxide
Farms
Non Kyoto-
Voluntary carbon market.
Protocol offsets
• Lower priced
• Soil carbon
• Altruistic Individuals.
• Avoided
• Carbon-neutral marketing
deforestation
• Government ($250M).
• Biochar

6. CFI offset Methods
• Registered • In development
– Landfill gas – Dietary supplements
– Methane from piggeries (oils)
– Environmental plantings – Nitrogen rate
– Savannah burning – Inhibitors and EEF
• In DOIC review (17)
– Landfill waste
– Camel culling

7. Abatement Metrics
• Net emissions abatement (CFI)
– GHG/ha
– GHG/farm or business unit
• Emissions intensity abatement
– GHG/unit production
CO2 -Energy
– GHG/MJ or food unit N2O - Indirect N2O - Dung,
8%
14% Urine & Spread
7%
• May not lead to reduced emissions
N2O - N
• Other metrics
Fertiliser
4%
N2O - Effluent
ponds
– GHG/Nutrient Food Index
0%
CH4 - Enteric
62%
– GHG/$100 operating profit CH4 - Effluent
ponds
5%
Browne et al. 2012

8. Options for abatement
• Dietary Supplements
– Oils (3.5% less CH4 per 1% oil)
– Tannin (eg. grape marc 20%)
– Legumes
• Net emissions: CFI • Emissions Intensity
– Feed oils when pasture – Increasing SR with
quality is low supplementation
• Assuming similar price to grain
• Don’t just displace grain
Eckard et al. 2010; Moate et al. 2010

9. Options for abatement
• Animal Management
– Minimize unproductive animals/ improve efficiency
• Earlier finishing of beef to feedlots
• Smaller cows for cross breeding
• Reproduction/weaning %, fertility, health
• Extended lactation in dairy
• Net emissions: CFI • Emissions Intensity
– Less cows for same milk – Increase stocking rate
– Smaller cows for same calves – Replace animals sooner
– Shorter lifetimes – Smaller cows for same calves
– Additionality?
Eckard et al. 2010

10. Options for abatement
• Feed quality
– Balanced ME: CP ratio
– Grain feeding/ supplementation
– Pasture improvement and legumes
• Lower rumen retention time, lower pH, increased propionate
• Net emissions: CFI • Emissions Intensity
– Same animal numbers – More pasture = more stock
• Less methane per animal • Less methane per kg MS
• Less urinary N loss
– Additionality?
Eckard, Grainger & de Klein 2010

11. Options for abatement
• Nitrogen management
– Fertiliser rate, source, timing, placement (BMPs)
– Formulation (EEF & inhibitors)
– Natural plant hormones
– Legumes in crop rotations
• Net emissions: CFI • Emissions Intensity
– Reduce N inputs for same – More yield for same N inputs
product – Hormones + N fertiliser
– Hormones vs N fertiliser
Eckard, Grainger & de Klein 2010

12. Options for abatement
• Inhibitors ENTEC®
• Nitrification and urease
• Fertiliser coating
• Spray on soil
• Fed to animals (5% of spray volume)
• Net emissions: CFI • Emissions Intensity
– Net reduction in N2O – Additional pasture
• And N inputs • Increased stocking rate
– Pasture or crop yields limited – Improved N efficiency
• CFI income alone insufficient
Eckard, Grainger & de Klein 2010

13. Options for abatement
• Effluent management
– Cover effluent ponds to generate methane
– Not viewed as waste, but valuable nutrients
• Spread in place of fertilisers
• At calculated rates
• When soils not saturated
• Net emissions: CFI • Emissions Intensity
– Methane generation – Use as nutrient source to
– Displace N fertiliser. upgrade low fertility areas
Eckard, Grainger & de Klein 2010

14. How CFI may work
• Individual farmers?
– Voluntary + Transaction costs high
– Gross income from an offset method
• $2 - $12 per method/ha/y
• <1% of farm gross income
• Aggregators
– Pre-farm (Fertiliser Companies)
– Post Farm (Processors)
– Consultants

15. In Summary
• Options are available
– To reduce total emissions under CFI
• Not many cost effective
• Methods are being developed
• Emissions Intensity
– Should remain the main focus of industry
• New area of research
– In time more options will become available
– Some will be cost effective

16. www.piccc.org.au
www.greenhouse.unimelb.edu.au
Greenhouse Accounting Tools
Articles
BMPs