Tag Archives: green
Carbon Farming Could Restore Australia’s Southern Coastal Wetlands
8 May 2013, 6.35am EST Carbon farming could restore Australia’s southern coastal wetlands Restoring our southern wetlands as carbon farms would have many additional benefits to the ecosystem and the public. Catherine Lovelock Australia’s southern coastal wetlands are more diverse than most people realise. In a recent paper , Paul Boon suggests they provide valuable ecological services that exceed those of inland wetland ecosystems. But these wetlands face enormous pressures from urban development and climate change. Fifty percent of coastal wetlands have been lost from the east coast of Australia. Despite this staggering loss we don’t know enough about them to manage or restore them effectively because of years of under-valuing, under-researching, under-funding and under-managing them. We now have an opportunity to redress the poor treatment of our southern coastal wetlands. Wasted wetlands to carbon farms Coastal wetlands store and sequester large amounts of carbon in their soils. “ Carbon farming ” is encouraged in the land-based environment to improve condition of the landscape and provide offsets for activities that emit carbon dioxide. Carbon farming could be encouraged in coastal wetlands, with restoration and improved management providing the possibility of benefits for biodiversity, fisheries, coastal protection and recreation. The carbon value arises because the plants of coastal wetlands are highly productive in contributing their own carbon to the soils. They can also “trap” carbon from other locations that is delivered with water flows. Additionally the low oxygen levels in their waterlogged soils inhibits decomposition of the carbon in the organic matter that is deposited leading to large stores of carbon in their soils. Recent studies of the carbon gains of restoration of saltmarsh in Australia indicates that about 0.6 – 1.4 tonne of carbon per hectare per year is stored in these wetlands ( Howe et al. ) compared to 0.1 – 0.3 tonne per hectare per year in agricultural soils when management is improved ( CSIRO agricultural soils report ). With the restoration of these ecosystems the potential for carbon sequestration far exceeds that of land-based ecosystems on a per hectare basis. Rogers et al. estimate that opening flood gates and allowing sea water with sea level rise into the Hunter River system could result in an additional 750,000 tonnes of carbon sequestered by 2100. Saltmarshes and mangroves are only two of the sixteen coastal wetland types listed in Boon’s paper. Other types, such as estuarine wetlands and melaleuca forests are known to have highly organic soils and are also likely to sequester large amounts of carbon. Siezing the opportunity Including coastal wetlands in the Carbon Farming Initiative (CFI) would not require any changes in the current legislation, because restoring drained wetlands is already listed as an eligible activity. This could be extended further to include restoration of degraded wetlands. The possibility of carbon sequestration projects in wetlands has already been established, with mangrove projects operating under the international voluntary carbon markets. Additionally, it is feasible that insurance can be obtained for carbon in wetlands. Multiple benefits would flow from including restoration in the CFI. Many coastal wetlands in southern Australia are contained within privately-owned properties, and recognising the carbon sequestration values of well managed wetlands can have a positive impact on property values. The Department of Climate Change and Energy Efficiency’s recent assistance package to regional Natural Resource Management groups could be used to explore the benefits from carbon farming by restoring coastal wetlands. Better still would be to include in the CFI a mechanism for including restoration of wetlands on public lands. This would go some way to reversing the degradation and loss that is occurring. National benefits Although coastal wetlands are currently managed mainly at the level of state and local government as well as by private landholders, they are a vital national asset. The Australian Government will benefit from coastal wetland restoration because of improved habitat for biodiversity, flood control and water quality improvement. But also the Government stands to benefit from the new wetlands accounting framework of the IPCC that is currently under review and likely to be ratified in October 2013. In this document the conversion and degradation of coastal wetlands will have an established carbon cost, and their maintenance and restoration will assist in Australia’s carbon balance. Although the Australian and state governments have legislative control over coastal wetlands, often the cost of day-to-day management of coastal wetlands is at local government level with a plethora of demands placed on their limited resources. A modified Carbon Farming Initiative that can include restoring publicly-owned wetlands may provide badly needed resources for local governments to manage wetlands in a way that increases their carbon sequestration with the additional benefits to biodiversity, fisheries, water quality, flood control and recreation. Ultimately our whole society benefits from having intact, functional and diverse wetlands. Colin Creighton of the Fisheries Research Development Corporation, Neil Saintilan of the NSW Office of Environment and Heritage and Anissa Lawrence of TierraMar Consulting also contributed to this article. Continue reading
Farmland — Gold You Can Eat
by Chris Bennett in Farm Press Blog Will investors continue to park their money on farmland? Speculation on a farmland crash hasn’t put a dent in the market. Talk of bubbles or crashes hasn’t put a dent in the farmland market, and if the end is nigh — nobody is blinking. Farmland is “gold I can eat” to Steve Romick, a heavyweight investor and managing partner at FPA Funds. Farmland purchases have moved far beyond the agriculture industry, with insurance agencies, specialized investors, foreign firms and pension funds all throwing elbows in a bidding war. Romick, in an interview with Forbes , answered the “Why farmland now?” question by comparing it with the gold market: “I don’t know how to value gold. I don’t know if it should be a thousand dollars an ounce, the rough cost to pull it out of the ground, or $1,600 an ounce, where it is today, or whether it should be $2,000 or God forbid it’s $4,000 because government may take it away from you … “I look at farmland. Farmland has increased in price. But farmland, interestingly, will benefit from the same things that gold will benefit from. If there’s inflation, farmland will benefit. If there’s a decline in fiat currencies, particularly the U.S. dollar, farmland will benefit. Ag prices are denominated in dollars. So if the dollar drops by 50 percent versus the won, for example, in Korea they can buy twice as much or their economy can benefit by not having to spend as much for the same amount of food.” Traditional investments often have been anemic and the poor returns have helped carve a channel for new dollars to flow toward cropland; dollars that would typically have gone elsewhere. The rise in farmland prices and the pace of sales is brisk, with the Midwest leading the spike. Iowa, South Dakota and Nebraska have doubled their 2005 farmland values. Iowa acreage averages $8,296 per acre, reflecting the confidence in corn and commodity demand, and an Iowa farm recently went for $21,900 per acre. In 2012, a Swiss bank bought 9,800 acres of Wisconsin cropland for $67.5 million. UBS AgriVest Farmland Fund Inc., a Connecticut-based farm real estate fund, is expected to close on a $108-million bid for 29,000 farmland acres in Wisconsin and Texas, according to Farmland Investor Letter . The value of the purchases is dizzying and the number of investor players beyond ag is growing. Midwest farm values get the most attention, but coast-to-coast, the same cropland value pattern is evident. California is a prime example, where farmland values grew to $7,200 in 2012. Almond acreage in Tulare County can bring close to $20,000 per acre. Continue reading
A Good Investment: Farmland Values Likely To Remain High
By Karen Caffarini More Content Now Posted Apr 26, 2013 @ 03:54 PM Last update Apr 26, 2013 @ 04:02 PM One area of real estate remains unscathed by the burst housing bubble: farmland. Prices continue to increase for property with prime soil, especially in the Midwest where corn is king. Farmland values have doubled in Illinois in the past five years, according to William Bailey, director of Western Illinois University’s School of Agriculture, and he doesn’t foresee any drastic drops in the future. Here are a few reasons why. Investment opportunities After the bottom fell out of housing, stock market investments plummeted and interest rates on traditional bank accounts dropped, some investors began looking to agriculture property as providing a relatively safe return, said Bradford T. Knipe, senior managing director at Integra Realty Resources in Boise, Idaho, which specializes in farm property. Many investors will buy the land and lease it back to the farmer, he said. Growth spurt The reasons that caused the last big bubble in farm values to burst in the 1980s — high interest rates, farmers owing banks large amounts of money and lower commodity prices — aren’t present now, Bailey said. “Farmers have paid off their debt, bought good equipment and are looking for places to put their money. In some cases, their neighbor’s farm might look very attractive to add to the size of their own farm,” he said. Knipe said farmers are buying either because they need more land to do what they do, or want to buy out their competition. Foreign investment Countries like China, India and Saudi Arabia are aggressively purchasing foreign farm land to ensure an ample food supply is available for their own people, Bailey said. Local farmers would still work the land; they would rent the property from the other country, he said. The determining factor in this case, however, is whether a farmer will refuse to sell to a foreign investor for patriotic reasons, Bailey said. High commodity prices Hot commodities like corn are helping boost prices for Midwest farmland higher than in the northwest area of the country, such as Idaho and Washington, Knipe said. Bailey said an ideal location and plenty of uses also help Illinois corn farmers, who can ship the golden kernels down the Mississippi River to the Gulf of Mexico and out to the rest of the world for consumption, to ethanol plants and to other farmers for livestock feed. Back to its roots When the bottom fell out of the residential subdivision market, land that would have been considered for a new housing development reverted back to its agricultural roots. “The real reason for the change was that the market viewed these lands as reverting back to their highest and best use, from development ground to ag ground,” Knipe said. Continue reading




