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A most informative day. The best explanation on carbon credits I have heard
Property values under the Carbon Farming Initiative
The Carbon Farming Initiative (CFI) is an incentive program that rewards landholders for adopting certain land management practices that reduce Greenhouse Gas emissions or store carbon in trees and soil.
The CFI represents an additional revenue stream for farmers, depending on the condition of the landscape and practices conducted in previous years.
The suitability of the property for Carbon Farming can be estimated by a Carbon Farming Audit which scores the holding on 10 dimensions:
- Soil structure
- Soil health
- Ground Cover
- Tree cover
- Potential Usage (grazing, cropping)
- Average Rainfall
- Fertiliser History
These dimensions can be used as indicators of soil carbon levels and potentials, opportunity for environmental and other plantings, and fertiliser management opportunities.
A Carbon Farming Opportunity Report can add an extra dimension to the value proposition of a property. This is especially so with degraded properties. For instance, the more degraded the soil, the lower the carbon levels, the more new carbon can be ‘sequestered’ or drawn down from the atmosphere by plants and stored in the soil.
Similarly, the higher the fertiliser applications, the more nutrients being tied up in the soil, the less is available to plants, the more fertiliser needs to be applied to maintain effectiveness. But replacing chemical fertilisers with other nutrient sources allows the landholder to claim carbon credits for reducing emissions caused by fertiliser.
Again, an estimation of stock carrying capacity plus average stocking rates can indicate potential for carbon credits arising from methane reductions.
Carbon Farmers of Australia p/l holds the required Australian Financial Services Licence, as well as being a Registered Offset Entity under the CFI. For more information on obtaining a Carbon Farming Opportunity Report, please contact us.
NB. No warranties can be given that any price will be achieved.