Carbon and profit are inseparable

alliances and advisory constraints that dominate NZ agriculture. e National Australia Bank discovered many years ago that the most pro table farms had a common theme. at was organic

Carbon and pro tability, sustainability, reduced nitrogen applications, and reduced greenhouse gas emissions all go hand in hand. ey are inseparable. We at Kiwi Fertiliser fertilisers we can nd. Where possible, we mix our fertilisers from lime through to nitrogen with a carbon source, Kiwi Carbon Blend. KCB is a win-win for Kiwi Fertiliser and the farmers

About two-thirds of world carbon emissions come from burning fossil fuels.

Over recent time, carbon dioxide in the atmosphere has increased from 280ppm to 400ppm.

It needs to go back to 280-350ppm to help mitigate climate change.

Although NZ’s contribution to the world’s perceived problems is negligible, farmers and growers can improve their individual bottom line by increasing carbon sequestration independent of any added income stream from selling carbon credits. at is an optional extra.

Expectations

When supervising dairy farms, some years ago, I noticed the fertiliser regime was not meeting expectations. Production stagnated, weeds and toxic chemicals had increased while animal health deteriorated. Pro tability su ered. We signed up to a nancial programme where the inputs and outputs were analysed on a cents/kg basis, e.g., feed grown, feed eaten, milk produced, stock sold etc.

e analyses showed quite clearly that the less feed that was bought in or supplement made, the greater the pro t. Research also shows the more the cows diets stray from pasture, the higher the greenhouse gas emissions. e more grain, PKE and other inputs they eat, the less healthy the milk and meat.

From this nancial programme, the foundation of Total Replacement Programme evolved, leading to a huge drop in the application of arti cial nitrogen.

Please note that nitrogen and carbon are diametrically opposed to each other. It is so easy to cut back and improve both pro tability and carbon sequestration. e key is to match feed supply with feed demand. Increase the number of balance dates you have from twice a year to many times more. Keep stock numbers in closer balance with feed grown.

Farming becomes a joy as it used to be.

Matching supply and demand means choosing a stocking rate that suits the pasture growth. is reduces the need to supplement. ese factors drive pro t. Identify the factors that increase pro t; not those that increase production. Once you do that, optimum production follows. Chasing production always increases costs, but not necessarily pro t.

Putting this into perspective, a farm I supervised that was most like LUDF in Canterbury produced an average annual ROI (return on investment) of 8.5 per cent.

Profit margins

e best LUDF ROI was 6.4 per cent. NZ average was 2-3 per cent.

Our worst was 6.5 per cent when the farm seriously ooded in 2004, and our best was 12.8 per cent in 2008.

Nitrogen use fell to 30kg/ha bu ered with carbon. LUDC N use was 8-10 times more, unbu ered meaning much of it would have been lost to the ground water supply and the atmosphere.

Our pro t was double that of LUDF. It also became very apparent most of the farmers that joined the nancial program also ran alternative fertiliser programs.

ey arrived at their decisions independently, being spread all around NZ. ey were free-thinkers, unencumbered by the commercial

Grass