A new calculator now being developed will help farmers understand the combined greenhouse gas and financial implications of farm enterprise decisions.

The calculator will demonstrate the financial impact different mitigation strategies may have on profitability, which will become particularly important if farms ultimately become direct participants in the national Carbon Pollution Reduction Scheme.

The computer-based tool, the FarmGAS Calculator, will be released later this year and will be available free online at the Australian Farm Institute website.

"The calculator lets the user compare a range of options to reduce greenhouse gas emissions arising from farm activities and develop an overall farm profile," the institute’s executive director, Mick Keogh, said.

"The calculator works by allowing farmers to enter both financial and production data to see the greenhouse emission profile of each enterprise and the overall farm as part of their gross margin budget."

The information farmers could gain from the greenhouse gas calculator would enable them to add or remove different enterprises, or vary the significance of each enterprise within their business.

It is part of a project NSW Department of Primary Industries (DPI) has undertaken on behalf of the Australian Farm Institute to investigate technologies and management options for reducing greenhouse gas emissions on farms.

To educate farmers about the tool, reports on typical examples of different farm enterprises will be prepared.

"Most farmers are likely to know the data required to complete the calculator, which will then enable it to break down greenhouse emissions into their source and type on a property," Mr Keogh said.

Farmers can come back to the calculator at any time to update or change their production data, or complete the process in stages.

All they need do is create a login and remember to save their data at each step.

The calculator will be able to project some "what if" scenarios to analyse the greenhouse gas impact of management changes.

The FarmGAS Calculator includes a general farm worksheet and covers farm enterprises such as cattle (breeding of progeny and fattening or stores), sheep, cropping (irrigated and broadacre), intensive livestock (beef feedlot and piggery), horticulture and environmental plantings.

The inclusion of farm trees will enable a manager to examine the potential of environmental plantings as a separate source of revenue, via the sale of greenhouse emission offsets, or alternatively to calculate the area of trees needed to offset or partially offset emissions generated by other enterprises on the farm.

Agriculture is the second largest emitter of greenhouse gases in the Australian economy, accounting for about 16 per cent of total output.

Reducing emissions is, therefore, important for achieving Australia’s long-term domestic targets.

Funding for the project was provided by the Australian Government Department of Agriculture, Fisheries and Forestry under the National Agriculture and Climate Change Action Plan’s Implementation Program and administered by the Australian Farm Institute.

When released, the calculator will be available at www.farminstitute.org.au

Contact David Coleman, Orange, (02) 6391 3342, david.coleman@dpi.nsw.gov.au

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