Carbon Farming Cashflows

November 19, 2010 at 7:52 am

 The cashflows from trading carbon are significant.  The graph below (click to enlarge)  is the anticipated cashflows from carbon yields outlined on the MAF lookup tables for the Hawkes Bay region and assuming a net carbon price of $20/tonne.  Also on the graph is the average Hawkes Bay MAF cash operating surplus for the last five years.  This is an average of all land classes.  The mean EFS for class 3 (steep hill low fertility hill country carrying 6 – 10 stock units) as per the beef and lamb East Coast Survey August 2010 was $58 per hectare.

With farm gate returns under pressure and cost rising farmers are now faced with what to do with their less productive land.  Carbon farming could become a means to increase income off poorer land classes and allow farmers to focus pastoral farming on their superior land classes.

It must be remembered that you are required to surrender Emissions Units if the carbon stocks in your registered Forestry area fall below a previously reported level (for example, due to harvesting or fire). However, liabilities will not exceed the Emissions Units transferred for the area of forest.

Advertisements

Entry filed under: Forestry.

Rent Reviews & Lease Renewals What is the Emissions Trading Scheme (ETS)


Calendar

November 2010
M T W T F S S
« Sep   Dec »
1234567
891011121314
15161718192021
22232425262728
2930  

Most Recent Posts