Emissions reporting: what Riverine Plains farmers need to know

Key messages

• Large companies, banks and exporters must now report their Scope 1, 2 and 3 emissions and many producers will soon be asked to provide emissions data to their buyers
  
• Farmers who know their emissions numbers will be ready for these new requirements and market opportunities
• While emissions reporting is becoming part of doing business in agriculture, it’s also a practical way to run a more efficient, profitable farm by identifying inefficiencies, cutting input costs, and helping improve long-term farm performance
• There are a number of simple, free, Australian emissions calculators that can support farmers to track their emissions

Across the Riverine Plains, farmers are already adapting to changing seasons, market pressures, and tighter margins.

Measuring farm emissions is becoming part of that process, not just as an environmental obligation, but as a way to understand how the business performs and where efficiencies can be gained. Knowing where emissions come from can highlight inefficiencies, guide input decisions, and help strengthen long-term resilience on-farm.

What are agricultural emissions? 

Agricultural emissions are the gases released through farming activities that contribute to climate change. The main ones are: 

• Nitrous oxide (N₂O): from nitrogen fertiliser and manure use
• Methane (CH₄): from ruminant livestock and manure
• Carbon dioxide (CO₂): from fuel combustion and machinery use

Understanding scopes 1, 2 and 3 

When reporting emissions, it’s important to understand the three scopes used internationally: 

1. Scope 1 – Direct emissions: Occur within the farm boundary, such as livestock methane, soil nitrous oxide, or diesel use in tractors and pumps.
2. Scope 2 – Indirect energy emissions: Come from purchased electricity used on-farm (for irrigation, refrigeration, etc.).
3. Scope 3 – Indirect value-chain emissions: Arise outside the farm, for example from fertiliser manufacturing, transport of inputs, or processing and distribution of farm products. 

Knowing these categories matters because new regulations, including the Mandatory Climate-Related Financial Disclosure, will require large companies to report against all three scopes. This means that buyers will increasingly need credible data from their suppliers, including primary producers. More information on this is available via Australian Treasury – Climate Disclosure Framework (2024).

Why does emissions reporting matter for farmers? 

Emissions reporting is becoming part of doing business in agriculture, but it’s also a practical way to run a more efficient, profitable farm. By identifying “hotspots” such as fuel, fertiliser or manure-generated emissions, farmers can cut waste and input costs. 

GRDC trials show that better, or more timely nitrogen management can lower fertiliser costs by up to 20 percent without affecting yield. 

Tracking emissions also prepares producers for new market and compliance expectations. Increasingly, major buyers and exporters are requesting this data under upcoming financial disclosure rules, and those who already measure their footprint will be ready to respond. 

Beyond compliance, understanding emissions will help farmers plan for the future, access carbon and finance opportunities, and build long-term farm resilience. 

Is emissions reporting mandatory? 

Not yet. In 2025 the Australian Government introduced voluntary standards for estimating and reporting agricultural emissions. 

However, under the new Mandatory Climate-Related Financial Disclosure regime, large companies, banks and exporters must now report their Scope 1, 2 and 3 emissions across the entire supply chain. 

As a result, many producers will soon be asked to provide data to their buyers.

In short: it isn’t mandatory today, but it’s quickly becoming part of doing business in agriculture. 

How to quantify on-farm emissions

Record key operational information: 

• Type and rate of fertiliser used 
• Fuel consumption by activity 
• Number and class of livestock 
• Electricity use 
• Land-use changes (e.g. new pastures, tree planting, fallow) 

Several Australian-based emissions calculators are available to estimate direct and indirect farm emissions. 
They rely on official National Greenhouse Accounts (NGA) factors and methods consistent with international standards. 

The Department of Climate Change, Energy, the Environment and Water (DCCEEW), together with the Carbon Farming Outreach Program (CFOP), has prepared an official summary table comparing these calculators, showing their coverage, data requirements and suitability for different farming systems (grains, livestock, dairy or mixed). 

Emissions are expressed in tCO₂-e, but what matters most is the trend over time or the emission intensity (e.g. kg CO₂-e per tonne of grain). 

A hypothetical on-farm example 

Imagine a Riverine Plains mixed farmer who starts tracking fuel, fertiliser and crop rotations after attending a local training or information session. After reviewing the data, they find that 30% of emissions come from nitrogen fertiliser use. By fine-tuning application rates, adding a legume rotation and recalibrating equipment, the farm cuts emissions by 15 percent and saves about $18/ha in input costs, with no yield loss. 

This example is hypothetical, but it reflects realistic outcomes achievable through better nitrogen and fuel management. 

Using emissions data to guide farm decisions 

Once emissions are measured, the real value comes from applying that information to improve efficiency and soil health. The table below shows how different emission sources can lead to practical on-farm actions. 

Need support? 

As mandatory climate reporting rolls out for large companies, market access and potential premiums will increasingly depend on credible on-farm data. Farmers who know their numbers will not only be ready to meet buyer expectations but can also use that information to improve efficiency, reduce costs, and strengthen their business for the future. 

If you’d like to learn more about measuring and reducing on-farm emissions, or explore opportunities under Australia’s carbon farming framework, visit our Carbon Farming Outreach Program or contact Sayra Samudio at sayra@riverineplains.org.au.