Carbon Farming helping drought-proof Aussie farmers

West Australian cattle property, Bulga Downs Station has become one of the first privately owned Australian farms to create and sell 125,000 carbon credits, two years after a Human Induced Regeneration (HIR) project was developed and implemented in partnership with RegenCo - a Natural Capital advisory and management company helping farmers to build a more financial and environmentally sustainable future.

This is a terrific outcome for both the pastoralist and the environment, according RegenCo CEO, Dr. Tim Moore who confirmed the payment was issued through the Commonwealth Emission Reduction Fund (ERF) - providing carbon revenue valued in excess of $2 million at current market prices. “Carbon Farming and HIR practices allow farmers to be more profitable and implement infrastructure that will enhance their pastoral production resilience in dry times, while also reviving their land and capturing carbon,” said Dr. Moore.

The 700,000-hectare Bulga Downs cattle property, located 340km north-west of Kalgoorlie, has been owned and operated by David McQuie and family since 1984. McQuie had been refining his farming systems for years, when the WA Government made its landmark decision in 2019, allowing Carbon Farming on pastoral lands. McQuie immediately began investigating the possibility and benefits of running HIR activities on his property.

“I took my time looking at how HIR practices could improve the long-term productivity of my grazed country, while delivering a solid commercial return. RegenCo advised on our new pastoral management plan which allows us to run and improve our cattle herd and helps generate carbon credits,” McQuie said.

The Bulga Downs HIR project, which will run for 25 years is expected to generate an estimated $36 million in carbon credit sales. Changes made to the property’s management as part of the regeneration project include the identification and establishment (fencing off) of suitable carbon farming areas, a reduction of cattle numbers grazing in these areas and the new watering points to help spread out grazing pressure. New total grazing management (TGM) yards will be installed in future years to further manage and disperse grazing pressure, and the preservation of strategic fire breaks will help protect the carbon regrowth areas.

Carbon credits or Australian Carbon Credit Units (ACCU) are earned for each tonne of greenhouse gas emissions or a carbon dioxide equivalent (CO2e) that’s been sequestered through approved methods, such as HIR and reforestation projects. Like any commodity, an ACCU can be traded by producers, consumers or investors – with the Australian Government and large emitters the most active buyers in the market at the moment. The ERF operates through a reverse auction process, where producers like Bulga Downs and RegenCo submit bids to sell their ACCU’s, and sets the standard market cost.

While the carbon credits market is still emerging and remains largely difficult to access in Australia, this is expected to change as demand and awareness grows among farmers. “The Bulga Downs Station carbon credits were sold to the ERF, a Self-Managed Super Fund (SMSF) and through local trade-counter Jarden (accus.com.au). The current market rate sits at around $18.60 per ACCU, an almost 20% growth compared to 2019 prices. We’re confident strong growth will continue in coming years,” Moore predicts.

“We believe that Agriculture can play a key role towards addressing climate change by reducing and offsetting carbon emissions while also supporting struggling farmers. We’re excited at the potential to replicate the Bulga Downs success across the country and help Australia achieve its emission reduction targets,” concluded Moore.

ENDS

Editors Notes:

-        About RegenCo:

RegenCo is a South Australian based Natural Capital Specialist company that works in partnership with landholders to provide innovative financial and land management solutions for food and cattle production systems and climate protection.

Assisting with the research and development, registration and implementation of carbon and natural capital regeneration projects, RegenCo aims to help diversify farmers’ income by generating valuable carbon credits, while continuing to run farms and improve the land.

For more information about RegenCo visit:  https://regenco.earth/

-        About Dr. Tim Moore:

CEO and Founder of RegenCo, Dr. Tim Moore has 20 years of experience across natural resource management, conservation land management, carbon markets (buy and supply sides) and agribusiness innovation.

Tim’s expertise and knowledge lies in the science and methods of land management and practical implementation of Carbon Farming initiatives, and regularly provides advisory services to the WA, SA and NT Governments. 

Connect with Dr. Moore on LinkedIn: https://www.linkedin.com/in/timnmoore/

-        Human Induced Regeneration (HIR):

Carbon farming is the process of changing farming practices or land use to increase the amount of carbon stored in the soil, trees and other plants, to reduce carbon emissions into the atmosphere. HIR is one method of Carbon farming designed to encourage the regeneration of Australian native plant species, indigenous to a local area.

About 45% of Australia’s landmass is considered to be degraded Rangelands, which store less carbon in the soil and are therefore less productive. This land will only continue to degrade under a business-as-usual management. HIR practices can help these landowners increase the amount of carbon they store, and regenerate their land.

More information about HIR: https://bit.ly/3yHGwpx

-        Relevant Links:

o   ERF Auction Results - http://www.cleanenergyregulator.gov.au/ERF/auctions-results/april-2021

o   Jarden Group - https://www.jardengroup.com.au/ and https://accus.com.au/

Download images: HERE