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Beyond the Bale : December 2011
35 selling more wool 35 on-Farm December 2011 Beyond the Bale the climate is changing. Regardless of whether man-made or natural forces are the main driving force, the wool and sheep industry can contribute to reducing the impact of greenhouse gases and potentially generate an additional income stream through carbon trading. However, the climate change issue is complex, technically and politically with many unknowns. Collaborative research will aim to unlock some of the unknowns in relation to Australian agriculture, and provide opportunities for woolgrowers to participate at an optimal level. Climate change is likely to result in a range of impacts, short and long term, affecting the resilience and capability of grazing enterprises to respond to risk. While woolgrowers are adapting their systems constantly to address new threats, grazing businesses require adaptation strategies to ensure long term business sustainability. AWI currently has a number of R&D investments which are finding innovations to help Australian woolgrowers adapt to the changes and opportunities which will come from a changing climate. AWI makes investment decisions in the environment, climate change and carbon area based on strategy three of AWI’s on-farm strategic framework in the AWI Strategic Plan 2010-2013. The key programs for this framework are: l Program 1: The Environment and Climate Change l Program 2: Carbon l Program 3: Provenance, Verification and Promotion of Wool Carbon Eco-Credentials. More information: For more information regarding current and past AWI investments in this area, and to download the latest publications and reports, visit www.wool.com/carbon. Fast Facts l The wool industry can contribute to reducing the impact of greenhouse gases and potentially generate an additional income stream through carbon trading. l AWI has a number of R&D investments which are finding innovations to help Australian woolgrowers adapt to the opportunities and threats which come from a changing climate. l Resources for woolgrowers are available on the AWI website at www.wool.com/carbon above: Woolgrowers can receive carbon credits for reducing greenhouse gas emissions from livestock and other on-farm practices such as fertiliser use, or increasing carbon stored in soils or vegetation on their properties. current ProJects AWI has a number of R&D investments in the carbon and climate change area, which aim to: l help increase woolgrower resilience and adaptability to climate change; l improve productivity through advances in carbon sequestration and global greenhouse gas mitigation; and l establish the wool industry’s provenance and eco-credentials to protect market access, support participation in carbon trading markets and enhance demand for wool. Latest PuBLIcatIons anD rePorts modelling the impact of a carbon tax on the australian wool industry September 2011 This 29-page report prepared by GHD Agriculture for AWI provides an estimate of the likely impact of a carbon tax on input costs for Australian sheep farming enterprises. The analysis applied Commonwealth Treasury modelling regarding the inflationary impact of a carbon tax, to model farms representing average sheep enterprises in both the pastoral and high rainfall production zones in Australia. In the absence of the full details of the proposed tax, this project aimed to model potential impacts on farm input costs under the most likely policy settings and using a range of potential carbon prices (ranging between $10 and $40 per tonne CO2). Farm level modelling of greenhouse emission mitigation and sequestration options for the australian wool industry August 2011 This 72-page report prepared by The Australian Farm Institute with funding from AWI provides an assessment of the issues regarding the implementation of Australian policies that will impose a cost on greenhouse gas emissions – policies that will bring about some important changes to the business environment in which Australian sheep and wool producers operate. At the same time, the Australian Government’s recently legislated CFI creates potential opportunities for landholders. Given the static nature of the modelling, the results are best interpreted as providing an indication of the challenge the policy will present for sheep farm businesses, rather than projecting actual future incomes. Carbon farming opportunities