IDEAS home Printed from https://ideas.repec.org/a/ags/afbmau/120871.html
   My bibliography  Save this article

The introduction of a carbon price and the use of agrichar in the sugarcane industry

Author

Listed:
  • Thomas, Cameron

Abstract

The Australian Government‘s proposal to put a price on carbon is likely to have a significant impact on the price of farm inputs (diesel, fertiliser, water and electricity). Furthermore, offsets (reduction or removal of greenhouse gas emissions that counterbalances emissions elsewhere in the economy) are a potential area of expansion of interest to the agricultural sector. Agrichar is one of the new technologies and farming practices being investigated to counteract carbon-price-imposed costs. Its two claimed benefits, which relate both to the profitability of sugarcane growers as well as to climate change, are the reduction in fertiliser application and the carbon which agrichar can store in the soil for hundreds to thousands of years. This study drew on the Farm Economics Analysis Tool (FEAT) developed by the Queensland Department of Primary Industries and Fisheries specifically for the sugarcane industry. An analysis was conducted for a typical sugarcane farming enterprise in the Herbert region of north Queensland. The scenarios included in the analysis recognised the change in input prices as a price is put on carbon, the change in farm practices when agrichar is included in operations and the potential to trade in offsets from that additional carbon stored by the use of agrichar. The sugarcane grower was found to benefit from the inclusion of agrichar into the operations. Agrichar is seen as a potential and viable option for sugarcane growers and should be considered as an alternative under the emissions trading scheme to minimise the impact of the rise in input costs. Further scientific and policy development could result in the possibility for stored carbon to be traded in the offsets market, providing additional, although minor, cash flow to the grower.

Suggested Citation

  • Thomas, Cameron, 2010. "The introduction of a carbon price and the use of agrichar in the sugarcane industry," AFBM Journal, Australasian Farm Business Management Network, vol. 7(1).
  • Handle: RePEc:ags:afbmau:120871
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/120871
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afbmau:120871. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/afbmnea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.