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Carbon Farming
  Richard Eckard
   Jamberoo NSW
   March 26th 2012
Agricultural Greenhouse Gas Emissions
                                            Australia 2009

                                                       Field Burning of
                                                         Agricultural

Nitrous oxide                         Prescribed
                                                        Residues, 0.4
                                                                          • Agriculture
                                      Burning of
                                    Savannas, 14.3
                                                                             – 57% of all methane
                                                                             – 73% of all nitrous oxide
                                                                          • Enteric Methane
                           Agricultural
                            Soils, 16.7
                                                        Enteric

              Rice
                                                     Fermentation,
                                                         64.6
                                                                             – 11% of National emissions
                                                                          • Nitrous Oxide from soils
        Cultivation, 0.1

           Manure
         Management,
             3.9                                                             – 2.5% of National emissions



                                          Methane

     Methane and nitrous oxide represent two of the biggest inefficiencies in agriculture

                                                                                                            DCC 2011
Typical Farm Emissions
                  N2O - Dung,
                 Urine & Spread
                      10%
                                                                                              N2O - Dung,
N2O - Indirect                                                                                  Urine
   11%                                                                                  N2O -    12%
                                                                                       Indirect
                                                                                         6%
                 N2O - N
                 Fertiliser                                                             N2O - N
                    4%                                                                  Fertiliser
                  CH4 - Effluent                                                          0%
                     ponds
                       1%
                                                     CH4 - Enteric
                                                        74%
                                                                                                                             CH4 -
                                                                                                                             Enteric
       N2O - Effluent                                                                                                         82%
          ponds                    Dairy                                                                       Beef
            0%
                                   3 - 7 t CO 2 e/cow                                                          2 t CO2e/steer
                                                                                         CH4 - Burning
                                   4 – 45 t CO 2 e/ha                                                          2 – 3 t CO 2 e/ha
                                                                                         N2O - Burning
                                   8 – 21 t CO 2 e/t MS                                                        6 – 7 t CO2e/t beef
                                                                                         N2O - Crop residues

                                                                                         N2O - Indirect
                                                                                         leaching
                                                                                         N2O - Indirect
                                     Grains                                              ammonia
                                                                                         N2O - N Fertiliser
                                     0.2 - 1 t CO2e/ha
                                     0.04 t/CO2e/t grain                                 N2O - N2 fixation



                                                                     Eckard, Grainger & de Klein 2010; Browne et al. 2011
The Carbon Farming Initiative

• Landholders can receive carbon credits for:
   – Reducing methane and nitrous oxide emissions.
   – Increasing the carbon stored in soils and vegetation.

• People and businesses can buy CFI credits to offset their
  emissions.
• Participation is voluntary.
Types of CFI offsets

         Kyoto-Protocol
             offsets          Mandatory carbon market

        • Eligible forestry   • Higher priced ($23/t?)
        • Methane             • 500 businesses facing tax
        • Nitrous oxide


Farms

           Non Kyoto-
                               Voluntary carbon market.
         Protocol offsets
                               • Lower priced
        • Soil carbon
                               • Altruistic Individuals.
        • Avoided
                               • Carbon-neutral marketing
        deforestation
                               • Government ($250M).
        • Biochar
CFI offset Methods
• Registered                     • In development
   –   Landfill gas                – Dietary supplements
   –   Methane from piggeries        (oils)
   –   Environmental plantings     – Nitrogen rate
   –   Savannah burning            – Inhibitors and EEF
• In DOIC review (17)
   – Landfill waste
   – Camel culling
Abatement Metrics
• Net emissions abatement (CFI)
  – GHG/ha
  – GHG/farm or business unit
• Emissions intensity abatement
  – GHG/unit production
                                                                               CO2 -Energy

  – GHG/MJ or food unit                 N2O - Indirect         N2O - Dung,
                                                                                   8%
                                           14%                Urine & Spread
                                                                    7%



     • May not lead to reduced emissions
                                     N2O - N


• Other metrics
                                     Fertiliser
                                       4%
                                                  N2O - Effluent
                                                     ponds


  – GHG/Nutrient Food Index
                                                       0%

                                                                                             CH4 - Enteric
                                                                                                62%


  – GHG/$100 operating profit             CH4 - Effluent
                                             ponds
                                               5%
                                                                         Browne et al. 2012
Options for abatement

  • Dietary Supplements
      – Oils (3.5% less CH4 per 1% oil)
      – Tannin (eg. grape marc 20%)
      – Legumes




• Net emissions: CFI                      • Emissions Intensity
   – Feed oils when pasture                  – Increasing SR with
     quality is low                            supplementation
      • Assuming similar price to grain
      • Don’t just displace grain

                                                       Eckard et al. 2010; Moate et al. 2010
Options for abatement

  • Animal Management
        – Minimize unproductive animals/ improve efficiency
           •   Earlier finishing of beef to feedlots
           •   Smaller cows for cross breeding
           •   Reproduction/weaning %, fertility, health
           •   Extended lactation in dairy


• Net emissions: CFI                     • Emissions Intensity
   –   Less cows for same milk                – Increase stocking rate
   –   Smaller cows for same calves           – Replace animals sooner
   –   Shorter lifetimes                      – Smaller cows for same calves
   –   Additionality?
                                                                   Eckard et al. 2010
Options for abatement

  • Feed quality
      – Balanced ME: CP ratio
      – Grain feeding/ supplementation
      – Pasture improvement and legumes
          • Lower rumen retention time, lower pH, increased propionate




• Net emissions: CFI                 • Emissions Intensity
   – Same animal numbers                 – More pasture = more stock
      • Less methane per animal              • Less methane per kg MS
      • Less urinary N loss
   – Additionality?
                                                            Eckard, Grainger & de Klein 2010
Options for abatement

  • Nitrogen management
      –   Fertiliser rate, source, timing, placement (BMPs)
      –   Formulation (EEF & inhibitors)
      –   Natural plant hormones
      –   Legumes in crop rotations


• Net emissions: CFI                • Emissions Intensity
   – Reduce N inputs for same          – More yield for same N inputs
     product                           – Hormones + N fertiliser
   – Hormones vs N fertiliser


                                                        Eckard, Grainger & de Klein 2010
Options for abatement
  • Inhibitors                                            ENTEC®
      •   Nitrification and urease
      •   Fertiliser coating
      •   Spray on soil
      •   Fed to animals (5% of spray volume)

• Net emissions: CFI                    • Emissions Intensity
   – Net reduction in N2O                  – Additional pasture
      • And N inputs                          • Increased stocking rate
   – Pasture or crop yields limited        – Improved N efficiency
      • CFI income alone insufficient



                                                            Eckard, Grainger & de Klein 2010
Options for abatement

  • Effluent management
      – Cover effluent ponds to generate methane
      – Not viewed as waste, but valuable nutrients
          • Spread in place of fertilisers
          • At calculated rates
          • When soils not saturated
• Net emissions: CFI                     • Emissions Intensity
   – Methane generation                      – Use as nutrient source to
   – Displace N fertiliser.                    upgrade low fertility areas




                                                             Eckard, Grainger & de Klein 2010
How CFI may work

• Individual farmers?
  – Voluntary + Transaction costs high
  – Gross income from an offset method
     • $2 - $12 per method/ha/y
     • <1% of farm gross income
• Aggregators
  – Pre-farm (Fertiliser Companies)
  – Post Farm (Processors)
  – Consultants
In Summary
• Options are available
  – To reduce total emissions under CFI
     • Not many cost effective
     • Methods are being developed
• Emissions Intensity
  – Should remain the main focus of industry
• New area of research
  – In time more options will become available
  – Some will be cost effective
www.piccc.org.au
www.greenhouse.unimelb.edu.au
Greenhouse Accounting Tools
Articles
BMPs

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Clearing the Carbon Confusion Dr Richard Eckard

  • 1. Carbon Farming Richard Eckard Jamberoo NSW March 26th 2012
  • 2. Agricultural Greenhouse Gas Emissions Australia 2009 Field Burning of Agricultural Nitrous oxide Prescribed Residues, 0.4 • Agriculture Burning of Savannas, 14.3 – 57% of all methane – 73% of all nitrous oxide • Enteric Methane Agricultural Soils, 16.7 Enteric Rice Fermentation, 64.6 – 11% of National emissions • Nitrous Oxide from soils Cultivation, 0.1 Manure Management, 3.9 – 2.5% of National emissions Methane Methane and nitrous oxide represent two of the biggest inefficiencies in agriculture DCC 2011
  • 3. Typical Farm Emissions N2O - Dung, Urine & Spread 10% N2O - Dung, N2O - Indirect Urine 11% N2O - 12% Indirect 6% N2O - N Fertiliser N2O - N 4% Fertiliser CH4 - Effluent 0% ponds 1% CH4 - Enteric 74% CH4 - Enteric N2O - Effluent 82% ponds Dairy Beef 0% 3 - 7 t CO 2 e/cow 2 t CO2e/steer CH4 - Burning 4 – 45 t CO 2 e/ha 2 – 3 t CO 2 e/ha N2O - Burning 8 – 21 t CO 2 e/t MS 6 – 7 t CO2e/t beef N2O - Crop residues N2O - Indirect leaching N2O - Indirect Grains ammonia N2O - N Fertiliser 0.2 - 1 t CO2e/ha 0.04 t/CO2e/t grain N2O - N2 fixation Eckard, Grainger & de Klein 2010; Browne et al. 2011
  • 4. The Carbon Farming Initiative • Landholders can receive carbon credits for: – Reducing methane and nitrous oxide emissions. – Increasing the carbon stored in soils and vegetation. • People and businesses can buy CFI credits to offset their emissions. • Participation is voluntary.
  • 5. Types of CFI offsets Kyoto-Protocol offsets Mandatory carbon market • Eligible forestry • Higher priced ($23/t?) • Methane • 500 businesses facing tax • Nitrous oxide Farms Non Kyoto- Voluntary carbon market. Protocol offsets • Lower priced • Soil carbon • Altruistic Individuals. • Avoided • Carbon-neutral marketing deforestation • Government ($250M). • Biochar
  • 6. CFI offset Methods • Registered • In development – Landfill gas – Dietary supplements – Methane from piggeries (oils) – Environmental plantings – Nitrogen rate – Savannah burning – Inhibitors and EEF • In DOIC review (17) – Landfill waste – Camel culling
  • 7. Abatement Metrics • Net emissions abatement (CFI) – GHG/ha – GHG/farm or business unit • Emissions intensity abatement – GHG/unit production CO2 -Energy – GHG/MJ or food unit N2O - Indirect N2O - Dung, 8% 14% Urine & Spread 7% • May not lead to reduced emissions N2O - N • Other metrics Fertiliser 4% N2O - Effluent ponds – GHG/Nutrient Food Index 0% CH4 - Enteric 62% – GHG/$100 operating profit CH4 - Effluent ponds 5% Browne et al. 2012
  • 8. Options for abatement • Dietary Supplements – Oils (3.5% less CH4 per 1% oil) – Tannin (eg. grape marc 20%) – Legumes • Net emissions: CFI • Emissions Intensity – Feed oils when pasture – Increasing SR with quality is low supplementation • Assuming similar price to grain • Don’t just displace grain Eckard et al. 2010; Moate et al. 2010
  • 9. Options for abatement • Animal Management – Minimize unproductive animals/ improve efficiency • Earlier finishing of beef to feedlots • Smaller cows for cross breeding • Reproduction/weaning %, fertility, health • Extended lactation in dairy • Net emissions: CFI • Emissions Intensity – Less cows for same milk – Increase stocking rate – Smaller cows for same calves – Replace animals sooner – Shorter lifetimes – Smaller cows for same calves – Additionality? Eckard et al. 2010
  • 10. Options for abatement • Feed quality – Balanced ME: CP ratio – Grain feeding/ supplementation – Pasture improvement and legumes • Lower rumen retention time, lower pH, increased propionate • Net emissions: CFI • Emissions Intensity – Same animal numbers – More pasture = more stock • Less methane per animal • Less methane per kg MS • Less urinary N loss – Additionality? Eckard, Grainger & de Klein 2010
  • 11. Options for abatement • Nitrogen management – Fertiliser rate, source, timing, placement (BMPs) – Formulation (EEF & inhibitors) – Natural plant hormones – Legumes in crop rotations • Net emissions: CFI • Emissions Intensity – Reduce N inputs for same – More yield for same N inputs product – Hormones + N fertiliser – Hormones vs N fertiliser Eckard, Grainger & de Klein 2010
  • 12. Options for abatement • Inhibitors ENTEC® • Nitrification and urease • Fertiliser coating • Spray on soil • Fed to animals (5% of spray volume) • Net emissions: CFI • Emissions Intensity – Net reduction in N2O – Additional pasture • And N inputs • Increased stocking rate – Pasture or crop yields limited – Improved N efficiency • CFI income alone insufficient Eckard, Grainger & de Klein 2010
  • 13. Options for abatement • Effluent management – Cover effluent ponds to generate methane – Not viewed as waste, but valuable nutrients • Spread in place of fertilisers • At calculated rates • When soils not saturated • Net emissions: CFI • Emissions Intensity – Methane generation – Use as nutrient source to – Displace N fertiliser. upgrade low fertility areas Eckard, Grainger & de Klein 2010
  • 14. How CFI may work • Individual farmers? – Voluntary + Transaction costs high – Gross income from an offset method • $2 - $12 per method/ha/y • <1% of farm gross income • Aggregators – Pre-farm (Fertiliser Companies) – Post Farm (Processors) – Consultants
  • 15. In Summary • Options are available – To reduce total emissions under CFI • Not many cost effective • Methods are being developed • Emissions Intensity – Should remain the main focus of industry • New area of research – In time more options will become available – Some will be cost effective