Increasing recognition and evidence supports the importance of healthy and well-functioning farm ecosystems, known as agroecology. The demand for farming systems to meet global and industry targets and agreements (such as the UN Sustainable Development Goals, ESG and the Paris Agreement) means that farmers and land managers have increased reporting requirements. These may need to address:

• supply chain pressures to demonstrate ‘net zero’ and ‘nature positive’ production
• private sector finance to fund environmental restoration
• organisations seeking carbon and biodiversity credits to offset their own environmental impacts

Farmers and land managers wanting to participate in carbon farming activities can find diversified investment opportunities to:

• improve the natural capital of their farm
• generate environmental, economic, social and cultural co-benefits for the community
• report against environmental performance.

Carbon farming positively impacts the environment, enabling farmers and land managers to provide essential food and fibre while improving farm resilience, sustainability and profitability. When considering carbon farming activities, make sure you’ve thought through the benefits and risks to come to an informed decision.

Co-benefits

Carbon farming can bring co-benefits, such as:

• improve soil health, stability and fertility by reducing erosion, minimising soil disturbance, improving soil structure, making better use of water, and improving nutrient retention and cycling
• improve pastures by increasing the quality of forage, giving pastures more time to recover between grazing periods
• improve animal productivity and welfare by increasing feed quality and managing herds better
• improve the water cycle by reducing evaporation and run-off, increasing infiltration of water into the soil and making more efficient use of water, reducing irrigation needs
• improve salt-affected land by rehabilitating wetlands and other blue carbon activities
• increase income and diversify income streams by developing low-emission products that meet market demands for these products
• improve biodiversity and ecosystems by improving and increasing diverse habitats and through traditional ecological practices that maintain a balance between human activities and the natural environment
• support people and communities by improving food quality and community health, creating secure jobs, protecting settlements and infrastructure and improving the liveability of spaces.

Risks and trade-offs

Some of the risks and trade-offs associated with carbon farming include:

• landscape suitability – rainfall, temperature, soil type and historical land management
• compatibility with agricultural production – suitable design and plantings for shelterbelts and agroforestry
• biodiversity benefits – design revegetation projects to improve threatened flora and fauna and/or ecosystem services such as pollination and integrated pest management
• water availability – water requirements for plantings and new crop varieties
• permanence of carbon storage – requirements for management, natural disaster impacts, carbon losses, risk management and succession
• legal – agreements, contracts and legislative requirements for participation in carbon markets
• financial – income from trading carbon versus costs to participate, cost/benefit of changing practices and equipment to implement carbon farming activities.

Held on Wednesday 17 November 2021, this one-day conference explored the benefits of adopting zero-emissions farming. It showcased the latest research, technology and information, as well as industry progress towards CN2050 targets.

These factsheets were developed as part of sustainable agriculture projects. Some content from the Port Phillip and Westernport Catchment Management Authority is still being updated and uploaded, following its integration into Melbourne Water in 2022.