How carbon farming can help boost productivity

Key messages

• Carbon farming can improve soil productivity by increasing soil organic carbon and building healthier soils
• Better soil health can enhance fertiliser and water-use efficiency, reducing costs and boosting yields
• Measuring and managing your emissions can support smarter, more profitable farming decisions

Carbon farming is more than a climate strategy—it’s a practical tool for improving productivity and farm resilience.

At its core, carbon farming involves land management practices that either increase the amount of carbon stored in soil and vegetation or help measure and manage on-farm greenhouse gas emissions. This not only helps mitigate climate change, but also improves soil structure, fertility and water-holding capacity, for more efficient systems.

To understand how carbon farming supports productivity, it’s important to clarify two key terms: soil organic carbon (SOC) and organic matter—while closely related, they are not the same. SOC is the carbon component of organic matter, which also includes other elements like nitrogen, phosphorus, and hydrogen. SOC is the main indicator used to explain how much carbon is being stored in the soil (a core goal of carbon farming). Increasing SOC typically reflects an overall improvement in organic matter, leading to better soil structure, nutrient cycling, and water retention—all of which are vital for long-term productivity.

The role of soil carbon and organic matter

Soil organic matter and SOC are essential for soil health. Higher levels contribute to:

• Better water retention and nutrient availability
• Enhanced microbial activity and nutrient cycling
• Stronger soil structure and aeration
• Greater resistance to erosion and climatic extremes

These benefits translate into improved crop yields, more productive pastures, and reduced variability across seasons.

In the Riverine Plains, typical SOC levels in agricultural soils range between 1.5–2.5%, but can vary widely based on soil type and management history. Research indicates that even small increases in SOC (i.e. 0.1–0.2%) can significantly improve water-holding capacity and nutrient availability. Farmers interested in benchmarking SOC levels can refer to regional data sources such as the Soil CRC or FarmLab platforms for more information.

Carbon farming and fertiliser use efficiency

One of the most immediate benefits of increasing soil organic carbon (SOC) is is more efficient fertiliser use. Healthy soils with higher organic matter retain nutrients better and release them more gradually, reducing losses from leaching or volatilisation. This is particularly important for nitrogen, phosphorus, and trace elements.

Carbon-rich soils also support more active microbial populations that help cycle nutrients naturally. Microbes mineralise organic forms of nutrients into plant-available forms, particularly nitrogen and phosphorus. As SOC levels increase, so do microbial biomass and enzymatic activity—enhancing the natural fertility of the soil.

As a result, farmers may require less synthetic fertiliser to achieve the same yield levels. This not only cuts input costs but also helps reduce greenhouse gas emissions, particularly nitrous oxide (N₂O), when combined with best management practices such as the 4Rs of nutrient stewardship (Right source, Right rate, Right time, Right place).

Using emissions data to improve productivity

Measuring greenhouse gas emissions (GHGe) on-farm—whether as part of a sustainability assessment, baseline audit, or internal benchmarking—can be valuable beyond reporting or compliance. This data can also serve as a productivity tool.

By tracking emissions related to fuel, fertiliser, and soil carbon, farmers can uncover inefficiencies, optimise input use, and target areas for improvement. In other words, the same indicators used to assess environmental performance can also support more profitable and productive decision-making.

Below is a summary of how key emission indicators relate to productivity improvements:

*Scope 3 emissions are indirect emissions from things like freight, input production, or off-farm activities. You can learn more about emission types by visiting the Clean Energy Regulator’s website.

Innovative tools 

To support farmers in applying these insights, a range of tools—both biological and digital—are now available to help build soil carbon or use emissions data to best effect.

Biological and bioelectric innovations

New biological inputs support carbon farming by enhancing root health, microbial activity, and nutrient uptake. Examples include:

- Loam Bio – focuses on increasing stable soil carbon 
- Metagen – microbial products for soil health 
- Utrisha N (Corteva) – biostimulant for nitrogen use 
- New Edge Microbials – inoculants for legumes and soil vitality 

These products are not silver bullets, however when integrated with good management, can accelerate soil improvements.

Rainstick, a new bioelectric technology that uses low-voltage electrical pulses to enhance seed germination is also being trialed, with promising early results. 

These tools are highlighted as examples of innovative, science-based approaches that may support improved soil function, input efficiency, and overall farm performance.

AgTech and satellite-based tools

Digital tools play a growing role in linking emissions data with productivity insights and includes platforms like:

- Ruminati – carbon footprint and scenario modelling
- DataFarming, Pairtree, Agworld, AgriWebb – decision support and farm records
- FlintPro, FarmLab, OptiSoils – monitoring soil carbon, vegetation, and biodiversity

These tools help farmers assess baseline conditions, track improvements, and target interventions efficiently. We highlight them as examples of what's available for farmers interested in leveraging data—not as product endorsements.

Conclusion

Carbon farming is not just about carbon credits—it’s about building healthier, more productive soils and using data to manage your farm more efficiently. By increasing soil carbon, improving input efficiency, and tracking emissions data, farmers can boost yields, reduce costs, and future-proof their operations. The result is a more resilient, sustainable farming system that benefits both the land and the business.