Australian farmers could reach net zero by 2040, says new report

Consulting firm Ernst & Young has modelled a pathway for agriculture reaching carbon neutrality by 2040 without negative economic implications

ABARES has found that climate change is costing the average Australian farming family $30,000 a year due to lost productivity. Picture: AFP

Australia’s agriculture sector could commit to reaching net zero by 2040 without industry shrinkage, a new economic report has revealed.

Consulting firm Ernst & Young has modelled a pathway to carbon neutrality for the sector, outlining ways farmers could diversify their income and boost their profit. The report comes amid an ongoing rift in the Coalition about a net zero target, with the Nationals still opposed to the goal.

The report, commissioned by Farmers for Climate Action, made several recommendations including improving pasture management, selective breeding and the use of feed supplements to reduce methane output.

Farmers for Climate Action chief executive Fiona Davis said many of the practices were already occurring but needed to be scaled up.

“All of these things will contribute to more profitable and resilient farming systems,” she said.

Ms Davis said the planting of crops that captured carbon should be voluntary.

“Farmers will likely plant their carbon and biodiversity crops on unproductive sections of their farms leaving the more productive and often flatter sections of farms for the more lucrative crops,” she said.

Australian farmers are expected to reap a record $73bn in produce this financial year, according to the government’s commodity forecaster.

But the Australian Bureau of Agricultural and Resource Economics and Sciences has also found that climate change is costing the average Australian farming family $30,000 a year due to lost productivity.

While major farming groups have thrown their support behind the goal, The Nationals have previously flagged potentially carving out agriculture from any emissions reduction strategy.

Prime Minister Scott Morrison has signalled his commitment to reach net zero emissions as soon as possible and preferably by 2050.