How can Australian grain farmers become carbon neutral?

You’ve probably heard the term “carbon neutral” popping up in conversations around the farm. You might be wondering if this is just another regulation you need to manage or if it could actually benefit your farm in the long run.

Simply put, being carbon neutral means balancing out the greenhouse gases your farm produces. This doesn’t mean you have to drastically change everything overnight. Instead, it’s about finding ways to gradually reduce or offset your emissions. While this might initially feel challenging, many farmers are finding it opens doors to new markets, makes their farm more efficient, and ultimately more profitable.

In fact, Australian grain farmers have already made impressive progress, producing some of the lowest-emission grain globally. Practices you’re probably already using, like precision farming and reduced tillage, have contributed significantly to this.

What exactly are greenhouse gases?

You hear about greenhouse gases all the time, but what are they, and why do they matter to you? Essentially, these gases trap heat in our atmosphere and lead to climate change. The main gases from farming include carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O). Each of these gases traps different amounts of heat, but they are compared with each other using a unit called “CO₂-equivalents” (CO₂-e).

Carbon neutral vs. net zero – clearing up the confusion

There’s some confusion around terms like “carbon neutral” and “net zero,” but here’s the simple difference:

Carbon neutrality means balancing your emissions by reducing or offsetting them elsewhere. Net zero is similar, but it places emphasis on actively reducing your emissions first, and only offsetting what remains after you’ve made these reductions.

Why is becoming carbon neutral important now?

The world around you is changing rapidly. Big grain buyers like CBH Group and international companies like Asahi are increasingly demanding grain with lower emissions. Governments and consumers globally now expect clear evidence that farms are operating sustainably.

Australia itself has set ambitious emissions reduction targets, starting to prepare now is important to ensure you don’t face unexpected costs or challenges later.

Brad and Joan Richens, grain farmers from Kamarah, NSW, are taking proactive steps toward carbon neutrality. They realised that planting trees to offset emissions wasn’t practical for their farm. Instead, they’ve partnered with Loam Bio to increase soil carbon.

“I don’t want to get to 2030 and have to pay a bill for my emissions just to farm. And for me, planting trees wasn’t an option,” Brad says. “If I can look after my soil, we go down that path. And if I can increase soil carbon, it helps me hold moisture, get better soil health, increase my yield and then have some ACCUs (Australian Carbon Credit Units) – that’ll be fantastic.”

By using Loam Bio’s CarbonBuilder^TM, a microbial seed treatment, they can build stable soil carbon. More soil carbon improves water retention and nutrient use efficiency, boosting farm productivity. Through Loam Bio’s SecondCrop^TM program, they can earn ACCUs, providing extra income and securing their farm’s future.

Their experience shows a growing trend: farmers who were once unsure about carbon initiatives are now adopting practices that reduce emissions and strengthen their farm’s productivity and resilience.

Understanding where your emissions come from

Knowing exactly where your emissions come from helps you figure out what to do next. On grain farms, most emissions come from the fertilisers you apply, fuel used by your machinery, and how you manage your soil and crop residues.

On average, for every tonne of Australian grain that is produced, 315 kg of CO₂-e is emitted (Sevenster et al., 2022).

Practical steps to get started

Measuring your emissions

The first step is getting a clear picture of your farm’s current emissions. This doesn’t mean you need to be a scientist. Just start with what you know.

• Set your boundaries. Think about what areas of the farm you want to include in your calculations.
• Use a simple calculator. Tools like the Cool Farm Tool make it easy. You just enter basic info about how your farm runs, fertiliser use, crop yields, fuel, and it does the maths for you.
• Get it verified if you need to. If you want to report your emissions formally, it’s worth getting your data verified by companies like Climate Active or Verra. They help give your numbers credibility.

Reducing emissions in practical ways

Once you know where your emissions are coming from, you can start making simple changes that add up over time.

• Improved nitrogen management. Adding legumes into your rotation can help fix nitrogen in the soil, so you don’t need as much synthetic fertiliser.
• Adopt precision farming. Tools like Variable Rate Technology (VRT) help you apply inputs more accurately, so you’re only applying what’s needed.
• Reduce tillage. Less disturbance to your soil means more carbon stays in the ground and you burn less fuel in the process.

Offsetting emissions you can’t reduce

Unlike ‘net zero,’ carbon neutrality allows you flexibility. You can offset as much or as little as you’d like, whether or not you’ve reduced emissions first. Some emissions are harder to cut out completely. For those, you can offset them in a couple of ways.

One option is to improve your soil health through carbon farming practices that store more carbon in the ground. If your efforts are verified through a program like the ACCU Scheme, you can earn Australian Carbon Credit Units (ACCUs) and use them to decrease your emissions or potentially sell them on the carbon market.

If a project isn’t possible right now, you can still buy verified carbon credits to help balance out the emissions you can’t reduce on-farm.

Real benefits of becoming carbon neutral

Moving toward carbon neutrality isn’t just about meeting regulations. It can help you save money through lower input costs, create additional income streams from carbon credits, improve your soil’s health and yield potential, and give you access to premium markets looking for sustainable products.

Tools and technology to support your journey

Several helpful technologies exist that make the path to carbon neutrality easier. For example, digital tools simplify tracking your farm’s emissions, and precision agriculture techniques reduce unnecessary inputs. Additionally, microbial technologies like Loam Bio’s CarbonBuilder can help you build stable soil carbon without a major upfront investment.

“At Loam, we prioritise quality over quantity in carbon removal. By building the most stable forms of soil carbon, we position ourselves in the premium carbon farming segment. Carbon buyers can trust that the carbon sequestered with our technology will remain in the soil for the long term.”

Guy Hudson (Co-founder & CEO at Loam)

How Loam Bio can support your farm

Loam Bio partners closely with farmers to navigate the carbon-neutral journey. They provide hands-on guidance, practical tools for measuring and managing soil carbon, and support in earning carbon credits. Whether you’re taking your first step or looking to expand existing practices, Loam Bio is there to support you.

Australian grain farmers have always been innovative and adaptable. Becoming carbon neutral is just another step towards keeping your farm resilient, profitable, and future-ready.