Carbon farming income as much as $100g per year
The Gillard Government’s announcement of a price for Carbon is welcomed by the Carbon Farming & Trading Association. It is good news for farmers because they can make additional income. Farmers can be paid the carbon price for reducing their emissions or capturing and storing carbon in soils and trees. The Carbon Farming Initiative legislation is complementary to the Carbon Tax legislation and is in the final stages of being passed through the Senate. “Farmers stand to make significant additional income if they take maximum advantage,” says Michael Kiely, Chairman of the Carbon Farming & Trading Association. “If soil carbon CO2 offsets fetch $23 a tonne, our best carbon farmers could make more than $100,000 a year at the top end of estimates.”*
“Add to that offsets earned for reducing methane from animals, reducing nitrogen emissions from animals and fertiliser, removing feral animals, planting native forests, reducing burning stubble and grasslands, etc. and there are many opportunities in prospect for farmers.”
These opportunities will be revealed at the Carbon Farming Conference in Dubbo NSW on 28-29 September, 2011.
*Leading carbon farmers report increases in soil carbon of 2% in a decade: 0.2% @ 30cms @ Bulk Density 1.0: 22tCO2-e/Ha/yr @ $23/t: $506/Ha. For 200Ha: $101,000. (NB. $23/t is the price to apply in the Compliance market. Soil carbon will initially be traded in the Voluntary market, price estimated at $10-15/tCO2-e, but the pathway to the Compliance market is anticipated by the Carbon Farming Initiative. For a more conservative estimate, simply halve the price and the resulting income. Note the above calculation based on 200Ha. Average farm size 800Ha. Note that the price on carbon will rise in the coming decade.)