Understanding emissions in farming and along the supply chain was part of the discussion at Farm World field days this year, held at Lardner Park on March 22 to 24.
While agriculture was expected to feed the world, and Australia’s farmers and food manufacturers to play a key role in reducing global hunger, there were challenges to do that while reducing emissions that created warming greenhouse gases and contributed to climate change.
At the same time, as other industry sectors reduced their emissions, the agriculture sector exponentially increases its greenhouse gas contribution.
Every year, CommBank holds a public discussion about a key issue related to agriculture.
This year Robert Green, a beef producer and finisher, was asked to contribute his knowledge and experience about understanding emissions and carbon sequestration.
The discussion was facilitated by Commbank agribusiness sustainability executive manager Carmel Onions, who also led a masterclass in understanding carbon and emissions measurement.
CommBank has started a pilot program focused on understanding the online tools available to farmers to calculate baseline emissions, as a step towards understanding what farming practices can contribute to a carbon neutral business.
Carmel said it was important to identify tools that reduced complexity about changing farming practices to enhance natural capital and improve productivity and profitability, while meeting future consumer demands.
One of the complexities is understanding how scope three emissions reduction are relevant to farming businesses, when they are part of the supply chain.
Scope one emissions were produced from farm assets and the farming practice.
Scope two emissions were produced from farm business activities using electricity bought off the grid.
Scope three emissions were caused along the supply chain, but can be related back to the farm business, its practices and assets.
“Other businesses along the supply chain are seeking to meet their own climate commitments and reduce their scope one, two and three emissions,” Carmel said.
“In ecological systems, we now understand that small temperature changes mean a lot.
“Baselining our carbon and emissions gives us an estimation of the greenhouse gases we emit in our businesses.
“Measuring our baseline emissions enables us to put together a plan to make a difference on our farms.
“Emissions measurement will become increasingly important to ongoing market access, for taking advantage of export opportunities and to meet supply chain expectations.”
In agriculture, these baseline measurements include methane, nitrous oxide and carbon dioxide.
“The goal is to reduce gross emissions and sequester carbon,” Carmel said.
“At this stage, we’re encouraging farmers to pick a model and measure their baseline.
“After that, they can develop plans for what actions they are going to take to improve their baseline data.”
Calculating their baseline emissions and understanding how this data correlates to their farming practices can mean farmers are in a good position to access discounted finance packages that recognise their investments in improving natural capital, business efficiencies and productivity.
Carmel said the market place was already teeming with sustainable solutions — including using genetics to improve growth of an animal, planting shelter belts on unproductive land and along waterways, increasing shelter for animals, and improving biodiversity.
The solutions adopted depended on the models and tools chosen by the farmer.
The other solution was to utilise activities that sequester carbon, increasing the amount of carbon in the soil.
Robert and Ingrid Green from Bacchus Beef, Tonimbuk, in the aftermath of the March 2, 2019 bushfire that burned through their property, sought knowledge so they could understand how to build soil health, and in the process found themselves building their knowledge about what to do in their farm business to be carbon neutral.
Their planned practice changes included having a stronger engagement with their supply chain.
The couple own and lease multiple properties, and this enables them to value add to their breeding enterprise, utilising land and a feedlot to fatten and finish livestock; they direct sell their finished product to abattoirs for the restaurant trade.
Robert spoke about their recent journey to baseline measure their emissions data and soil carbon.
This included soil core samples to one metre depth.
“We used the one metre depth as a reference point, because we believe we need to know where we’re starting from to identify the best solutions for our business,” Robert said.
They completed a detailed analysis in 2021, and their plans going forward include five-yearly reviews. Their next detailed analysis will be in 2026.
Measuring their emissions has resulted in establishing tree lines on their properties, changing their beef genetics to breed smaller cattle that finish quicker, and using feeding systems that reduce fodder wastage.
They have also purchased and leased land with an eye to topography that suits their farming activities.
Robert said he and Ingrid aimed to become carbon neutral in their farm business.
“We’re embedding sustainability within our farm operations,” he said.
“The beef industry has set a target of carbon neutrality by 2030.
“Establishing the baseline encourages us to identify activities we can do and practices we can change to get to carbon neutrality.”
The discussion at Farm World came on the back of a 2019 report released by CommBank that identified climate change could see profitability declines in agriculture, as much as 40 per cent by 2060 in the dairy industry.
Heat stress affecting the ability of cows to lactate and produce milk and lack of rainfall leading to declining pasture quality and quantity would contribute to this reduction in profitability.
Conversely, solutions that included shade and water to help keep cows cool, and utilising technology to reduce overgrazing, would help to maintain productivity within some agricultural systems.
More recently, the Chubb review analysed Australia’s indicators and systems integrity for carbon trading.
The Independent Review of Australian Carbon Credit Units, led by former chief scientist, Professor Ian Chubb, was commissioned by the Federal Government in July 2022.
The review recommended improvements in the accreditation and regulation of carbon service providers and carbon market advisors.
But the Climate Council said the review ignored major greenhouse gas emitters role in buying Australian Carbon Credit Units to offset their emissions polluting practices, rather than change practices.
This has created a market for offsets on paper that can enable landholders, including farmers, to trade their carbon sequestration efforts.
Climate Council Head of Advocacy Dr Jennifer Rayner said if the government did not create reform in the market place, this would enable some polluters to continue their practices, and cheaply purchase carbon credits from farmers.
Carmel Onions was firm in her response to the review.
“Carbon farming is very complex,” Carmel said.
“And I encourage farmers to speak to a lot of specialists, including getting legal advice, about what it means to their business to sell any carbon they sequester or use to offset their own emissions.
“If you sell the value of your sequestered carbon to a business along your supply chain, you can’t use that credit for your own business.”
She said economic highs and lows, such as the cost of living crisis currently being experienced, would always affect the decisions consumers make when buying food.
This included any supposed price premiums attached to food that was labelled carbon neutral or with any other sustainability label.