The changing face of farming explored at Beef

From hesitation to innovation – embracing soil carbon

Soil carbon is essential for productive, healthy, functioning farming enterprises, and a driver of many production benefits.

Carmel Onions, CBA’s Executive Manager for Agribusiness Sustainability Strategy and Carbon, said during the event that there is huge potential for Australian producers to sequester and store carbon dioxide in our soil to help combat climate challenges.

“We've got a global challenge where we've got too much carbon dioxide in our atmosphere, which means the opportunity is there for farmers, and particularly beef producers, to tap into the carbon market and be remunerated for practices where they sequester more carbon,” she says.

Panellist Dr Terry McCosker OAM says that in the carbon space, Australia has been leading the charge, but producers have to be ready to play the long game to see results.

“I’ve been working in the carbon sector for about 17 years, and it’s taken this long for us to start to realise the rewards that sequestering soil carbon can provide. One of the things I’ve learnt is that it all comes down to how you manage your soil carbon program. Yes, carbon sequestration is largely driven by rainfall, but it’s how we manage this and the balance between photosynthesis and oxidation that can deliver results.

“There are many management systems that waste photosynthesis, where plants or grass are not properly managed. I could have two properties side by side, exact same rainfall, exact same soil types, and the one that's well managed will sequester carbon and the other one will waste its photosynthetic capacity. Producers need to realise it takes time, patience and discipline, but the results are worth it,” Terry says.

Lachlan Dunsdon, National Director Rural & Agribusiness from property valuer Acumentis, says

“There are some good examples of where a strategically developed and implemented carbon farming project has added value to a rural property at the point of sale”.

“Carbon farming projects are often best suited to the current or exiting owner of the land upon which they are situated. For that value to equate to “added market value”, or value that an incoming purchaser will pay a premium to traditional farmland value for, it is up to the landholder and their carbon project developer to communicate simply, clearly and effectively how that project co-exists with existing primary enterprise” Lachlan says.

CBA’s Associate Director Carbon Lachlan Finch added that while there is often some hesitation from producers, the tools and support are there to get started down the right path.

“I encourage producers either way – whether you’ve got a carbon project, you’re thinking about it, or just starting out – to consider your options, as it requires some planning and expert support. When it comes to funding options or navigating market information CBA has a whole team of carbon specialists who can provide you with crucial insights no matter what stage of the carbon journey you’re at.

“We’ve invested heavily in people and products to support our customers in this area, so if you're a customer of CBA, then we want to support you and help turn your ambitions into reality.  In addition to building a carbon trading desk to give our clients market access, we’ve also developed a number of bespoke funding solutions to help customers get projects off the ground and keep them funded throughout their life. In essence, we have the insights and support for producers when they’re ready to take that first step,” Lachlan says.

Using farm data to build future fit farming enterprises 

Natasha Greenwood, CBA’s General Manager for Agribusiness, kicked off the farm data session with some insights about why farm data is so valuable for running a successful farming operation.

“Australia’s agricultural industry can be highly variable. With fluctuations in commodity prices, changing seasonal conditions and higher farm input costs, producers are always looking for opportunities to positively impact productivity and profitability. Having access to the right farm data can play a real role here and has never been more important,” Natasha says.

CBA customer and beef producer John Frith from Glen Arden Cattle Co. says there is a big difference between data and insights. “We need to make sure that we’re not just collecting data for the sake of it, but making sure we understand it so that it is something which is useful and in our decision-making process.

“The first step is benchmarking. You need to define what your goalposts are for your business, what you’re aiming towards, and how you’ll use data to help you monitor and achieve this. Benchmarking things like animal health, weight gain, nutrition and productivity helps us set clear goals around our business and understand what's really driving profitability,” John says.

Natasha says CBA is using farm data to better understand and support agribusiness customers. “We are already using geospatial and remote sensing data to get a deep understanding of our agribusiness portfolio and to identify how we can best support customers.

“It’s important we have good connections and deep relationships with those who are creating the tech and data platforms so we can amplify those tools, form strategic partnerships, and give our customers the benefit of some robust data which will help inform on farm decision making.

“We’re always looking at ways we can simplify things for our customers so they can focus more on building businesses that are productive, profitable and resilient.” Natasha says.

CommBank Regional and Agribusiness Specialists

Talk to your CommBank Regional and Agribusiness Specialist today if you’re looking to explore ways to build a future-fit farming enterprise. Learn more