Modelling the biophysical and economic impact of on-farm greenhouse gas abatement Natalie Doran-Browne, BSc (Hons) March 2015 Thesis submitted in total fulfilment of the requirements of the degree of Doctor of Philosophy Faculty of Veterinary and Agricultural Sciences The University of Melbourne Produced on archival quality paper Abstract Climate change has resulted in a number of global challenges, such as the need to reduce greenhouse gas emissions (GHGE) with the simultaneous challenge of feeding a burgeoning world population. Agriculture is responsible for 10-12% of global anthropogenic GHGE. In Australia, 15% of national emissions come from agriculture, which is also the main source of anthropogenic nitrous oxide (N O) and methane (CH ). 2 4 Information is needed on various mitigation options and their effect on farm profitability before GHGE can be reduced from the agricultural sector,. Determining agricultural emissions is complicated by a number of factors such as the range of production environments and management practices that characterise agriculture, as well as the methods chosen to calculate farm GHGE. Understanding how farms with different types of production manage under current climate variability is the precursor to examining the potential for mitigation. From an industry perspective it is challenging, especially for livestock farms, to expand the industry while attempting to reduce GHGE. Additionally, unless mitigation options are profitable there is no incentive for farmers to change the management of their farms to reduce emissions. Therefore, the cost- effectiveness of mitigation options needs to be analysed against the current profitability of farms. The purpose of this thesis was to compare the GHGE produced by wool, prime lamb, beef, dairy, and grain production in southwest Victoria and to compare the profitability of these farms under different rainfall and market price scenarios. This thesis also sought to demonstrate selected ways that farmers can mitigate GHGE through changes in farm management or improvements in productivity, while assessing the potential of these mitigation options to generate carbon offsets. The importance of methods and metrics when researching farm GHGE was also explored. This research focused on farm enterprises in the high rainfall areas of southwest Victoria. This region was chosen because its fertile soils and climate make it suitable for multiple types of livestock and crop production, enabling the comparison of emissions from these different types of production within the one environment. Computer modelling was used extensively to examine the GHGE, mitigation options, production levels, profitability and economic feasibility of mitigation strategies in this thesis. Farms are complex systems that consist of numerous components such as different soil types, Page i pasture species and livestock. Whole-farm models allow the relationships between components to be analysed and incorporated into a whole system that can be examined across numerous years, including various changes to management or the environment. In this thesis, whole-farm biophysical models were used to represent the livestock enterprises. To calculate emissions that were compliant with Kyoto accounting, the Australian National Inventory methodology was used, which is based on the IPCC methodology but substitutes Australian values and algorithms where they exist and otherwise uses the default IPCC values. This thesis contributed a number of important findings to the body of knowledge that exists on GHGE from agricultural enterprise and clarified key concepts on effective ways of mitigating on-farm GHGE. The enterprise comparison showed that the emissions intensity of grain farms was the lowest (0.04-0.15 t CO e/t grain), followed 2 by steers (6.3-6.7 t CO e/t carcase weight), dairy (8.5-9.4 t CO e/t milk fat plat protein), 2 2 prime lamb (11.4-12.0 t CO e/t carcase weight), wool (18.1-18.7 t CO e/t clean fleece) 2 2 and cow-calf enterprises (22.4-22.8 t CO e/t carcase weight). The research 2 demonstrated that the profitability of these enterprises was affected more by changes in rainfall than commodity prices. Dairy enterprises were the more profitable ($/ha), but the profitability of wheat, steer and prime lamb enterprises were least affected by low rainfall scenarios. The self-replacing cow-calf beef systems, canola and dairy enterprises were the most vulnerable to reduced rainfall. This thesis showed that mitigation strategies that focused on emissions intensity have more potential to be implemented by farmers because the improved productivity often leads to increased profitability. Selected mitigation strategies were explored that analysed the lifetime emissions of livestock and also the use of a novel legume on sheep farms that increased productivity and profitability while simultaneously reducing GHGE. The profitability from productivity gains was 4 to 13 times larger than likely offset income at a carbon price of $23/t. Finally, a new metric was developed, t CO e/unit nutrient density, that compared GHGE from food production using the 2 nutritional value of the food. Further analysis into this metric would be beneficial. Farm emissions using the metric t CO e/unit nutrient density were compared with emissions 2 intensity, as well as against the protein (t CO e/t protein) and energy (t CO e/GJ) 2 2 content in food. Page ii The knowledge gained through this research will help farmers and policy makers to more effectively reduce GHGE. Of key importance is that while carbon offsets in Australia have been generated from a limited number of farms, the uptake by broadacre farmers has been slow because implementation costs of mitigation options generally exceed potential carbon offset income. However, pursuing productivity increases profitability and using an emissions intensity metric to evaluate proposed mitigation strategies is likely to be a more successful approach to reducing agricultural emissions, provided that increased productivity occurs sustainably. Page iii Declaration This is to certify that: (i) the thesis comprises only my original work towards the PhD except where indicated in the Preface, (ii) due acknowledgement has been made in the text to all other material used, (iii) the thesis is fewer than 100,000 words in length, exclusive of tables, maps, bibliographies and appendices Natalie Doran-Browne March 2015 Page iv Preface The majority of this thesis consists of original published works by Natalie Doran- Browne as the primary researcher and author, as follows: 1. Full title: A comparative analysis of on-farm greenhouse gas emissions from agricultural enterprises in south eastern Australia Authors: Browne, NA, Eckard, RJ, Behrendt, R, Kingwell, RS Candidate’s contribution: 85% Journal: Animal Feed Science and Technology Volume and pages: 166-67, 641-652 2. Full title: The relative profitability of dairy, sheep, beef and grain farm enterprises in southeast Australia under selected rainfall and price scenarios Authors: Browne, N, Kingwell, R, Behrendt, R, Eckard, R Candidate’s contribution: 80% Journal: Agricultural Systems Volume and pages: 117, 35-44 3. Full title: Does producing more product over a lifetime reduce greenhouse gas emissions and increase profitability in dairy and wool enterprises? Authors: Browne, NA, Behrendt, R, Kingwell, RS, Eckard, RJ Candidate’s contribution: 85 Journal: Animal Production Science Volume and pages: 55, 49-55 4. Full title: Modelling the potential of birdsfoot trefoil (Lotus corniculatus) to reduce methane emissions and increase production on wool and prime lamb farm enterprises Authors: Doran-Browne, N, Behrendt, R, Kingwell, R, Eckard, R Candidate’s contribution: 85 Journal: Animal Production Science Volume and pages: Published online, awaiting assignment to an edition Page v 5. Full title: Nutrient density as a metric for comparing greenhouse gas emissions from food production Authors: Doran-Browne, N, Eckard, R, Behrendt, R, Kingwell, R Candidate’s contribution: 85 Journal: Climatic Change Volume and pages: 129, 73-87 The co-authors of each published paper have consented to the inclusion of these works in this thesis and signed The University of Melbourne co-author declaration form accordingly. The co-authors have certified that the primary author, Natalie Doran- Browne, contributed greater than 50% to these papers and as was responsible for the planning and execution of the research, as well as the writing and preparation of each paper for publication. The inclusion of the abovementioned published works in this thesis has been approved by the candidate’s advisory committee. The University of Melbourne’s Declaration for a thesis with publication has been certified by the candidate’s principal supervisor, Associate Professor Richard Eckard. Page vi Additional Papers: Conference Proceedings Doran-Browne, NA, Eckard, RJ, Kingwell, RS, Behrendt, R (2014) Modelling the methane reduction from dairy cows that are fed supplementary dietary fats. Proceedings of the International Symposium on the Nutrition of Herbivores/International Symposium on Ruminant Physiology, 8th to 12th September 2014, Canberra, Australia. Browne N, Eckard R, Kingwell R, Behrendt R (2013) An analysis of extended lactation as a potential mitigation and carbon offset option for pasture-based dairy enterprises in south eastern Australia. Proceedings of the 2013 Greenhouse Gases and Animal Agriculture Conference, Dublin, Ireland. Browne N, Eckard R, Behrendt R, Kingwell R (2012) The economic viability of selected greenhouse gas mitigation options on sheep, beef and dairy enterprises in southwest Victoria. Proceedings of the 2012 Climate Change Research Strategy for Primary Industries, Melbourne, Australia. Browne N, Behrendt R, Kingwell R, Eckard E (2012) Comparing Greenhouse Gas Emissions and Farm Profit on Sheep, Beef, Dairy and Grain Farms in Southwest Victoria. Joint Proceedings of the 2nd Conference of the New Zealand and Australian Societies of Animal Production, Lincoln, New Zealand. Browne N, Kingwell R, Behrendt R, Eckard, R (2012) Comparing the profitability of sheep, beef, dairy and grain farms in southwest Victoria under different rainfall scenarios. Proceedings of the 2012 Australian Agricultural and Resource Economics Annual Conference, Fremantle, Australia. Browne N, Eckard R, Behrendt R, Kingwell R (2010) A comparative analysis of greenhouse gas emissions from agricultural enterprises in SE Australia. Proceedings of the 2010 Greenhouse Gases and Animal Agriculture Conference, Banff, Canada. Page vii Acknowledgements My gratitude and thanks goes to all those who have helped throughout my PhD. Firstly to my supervisory team, all of whom are highly esteemed in their respective fields. Thanks to my chief supervisor, Associate Professor Richard Eckard from The University of Melbourne, for your perspective and willingness to make time for students. I have appreciated your patience and understanding, your expertise, readiness to discuss research and general good advice. Thanks to Dr. Ralph Behrendt from DEPI Hamilton for your skill as a scientist and the thorough way you analyse research which helped throughout the PhD. Also for your calm manner that made me see that things would work out alright, even during the hectic times. To Professor Ross Kingwell from The University of Western Australia, thanks for your guidance, and particularly for your prompt and valued feedback on papers. Thanks for always asking how everything was going along this journey, which helped to make the process less isolating. I would like to thank the many researchers that have shared their time so generously, particularly the whole-farm system analysis of greenhouse gas abatement options for the southern Australian grazing industries (WFSAM) team for being willing to bounce ideas off and act as sounding board to discuss my research. To my fellow PhD candidates, I am grateful for the many talks, the mutual support and advice received along the way. Thanks especially to Tamara for your valued friendship, motivation and understanding at all stages of my studies. I also appreciate the friendship of Glenn and your four-legged children. My gratitude goes to my friends who have been so patient and considerate, especially in those times when I withdrew from social life to work on my research. Thanks to Stephen and Sara for your friendship and the games nights that provided a welcome break. Many thanks to my family, especially my parents, Therese and Roger. Thanks dad for knowing when I needed extra support and for making it known that you are behind me. Thanks mum for your caring and generous ways, for the many meals we’ve shared (that you’ve cooked!) and for lending a hand through the hard times. Thanks especially for always making time available to help out in whatever way you could. Finally I would like to thank my husband Shane for your tireless and enduring love, support and encouragement, your contagious happiness, positive attitude and endless belief in my abilities and who I am. I truly don’t know where I would be today without Page viii you. You have experienced the highs and lows of PhD research with me and been there at each step. And also to Pippa and Rex, our happy hounds who always greeted me with a smile, no matter what mood I was in and who helped me to leave the desk for a walk and to remind me of what is important in life. To Bessie, thanks for the incentive to finish my thesis and in the end providing the motivation I needed to complete my PhD. Page ix
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