By Karen Bates, Head of Agribusiness & Advisory
At Opteon, we combine on-the-ground agricultural experience with deep valuation expertise. Our agribusiness specialists understand how land is worked, managed and valued - and we know the opportunities and complexities that come with change. One of the most significant shifts in the rural landscape today? Carbon farming.
What is carbon farming?
Carbon farming refers to land management practices that reduce greenhouse gas emissions or increase the carbon stored in vegetation and soils. This process, known as carbon sequestration, offers a new income stream for landholders - particularly those in extensive pastoral regions - by generating Australian Carbon Credit Units (ACCUs). Each ACCU represents one tonne of carbon dioxide stored or avoided.
Farmers and landowners can earn ACCUs by adopting eligible practices, such as:
- Regenerating or protecting native vegetation,
- Planting trees,
- Improving soil carbon levels through altered grazing or cropping methods, or
- Enhancing energy and fertiliser efficiency.
These ACCUs can then be sold to companies and governments looking to offset their own emissions, under Australia’s Emissions Reduction Fund (ERF). As of early 2025, ACCUs are trading at around $35–$40 per tonne, though this fluctuates based on demand and government policy (Clean Energy Regulator, 2024).
A growing but complex opportunity
Carbon farming is still a relatively new sector - and it’s evolving. Market confidence is growing, with increasing corporate and institutional investment. However, key challenges remain. For many rural enterprises, integrating carbon projects with traditional land use (such as grazing) raises both practical and legal considerations. For example, entering into a carbon agreement may restrict future land clearing or development, potentially affecting future productivity and the property’s valuation.
It can also take time to realise a return. Registration of a carbon project can take six months or more, and it may be up to 18 months before the first credit is issued and sold. For this reason, carbon income is best viewed as long-term and supplementary — not a short-term replacement for core operations.
Valuation data for carbon-credited land remains limited, especially in Western Australia and the Northern Territory, where pastoral leasehold land dominates and transactions are often private. Nonetheless, there’s growing evidence that well-structured carbon projects can enhance asset value, particularly when paired with biodiversity or ESG-linked financing mechanisms (ANZ, 2024).
What it means for landholders and lenders
Carbon farming provides a chance to diversify income, improve land condition, and contribute to national climate targets. For financiers, it offers a new layer of complexity (and opportunity) in rural lending. Understanding the legal and operational constraints of carbon agreements is essential, particularly in relation to land use flexibility and resale.
How Opteon adds value
Our agribusiness valuers bring lived rural experience and data-backed insights to this emerging sector. From understanding the physical characteristics of a property to assessing the long-term implications of a carbon covenant, we help landowners, lenders and investors navigate this changing environment with confidence.
We continue to monitor market developments closely, including transaction evidence, government incentives, and technological innovations such as satellite measurement of biomass. As the carbon farming sector matures, we remain committed to providing reliable, independent advice that reflects the full value, and future potential, of the land.
References:
- Clean Energy Regulator. (2024). Australian Carbon Credit Unit (ACCU) Scheme – Quarterly Market Report.
- ANZ. (2024). Carbon and Natural Capital in Agribusiness Lending.
Karen is an experienced property valuer providing commercial, industrial, rural and specialist valuations across Newcastle, Hunter Valley and the Central Coast.
Karen provides high quality valuation reports for mortgage security and specialist purposes, including compulsory acquisition and compensation valuations under Land Acquisition (Just Terms Compensation) Act 1991 and valuations as an expert witness pursuant to Division 15 of the Family Law Rules 2004.
She has developed strong working relationships with a broad range of stakeholders including local and state government, sales agents, property developers, and investors, and she is able to draw on this network to provide important insight into the property market and valuation drivers in the region.
Karen also plays a leadership role in the industry. She is currently a member of the API NSW State Committee, as well as being an API Examiner for valuer candidates, and she is a founding member of the Women in Property Valuation network.
Prior to returning to the property valuation profession, Karen spent 15 years as a regional economic development specialist working across Western Australia, South Australia and Queensland, both on the ground, and in higher level policy development, leadership and management positions.
Contact Karen on 0458 590 050 or karen.bates@opteonsolutions.com
DISCLAIMER
This material is produced by Opteon Property Group Pty Ltd. It is intended to provide general information in summary form on valuation related topics, current at the time of first publication. The contents do not constitute advice and should not be relied upon as such. Formal advice should be sought in particular matters. Opteon’s valuers are qualified, experienced and certified to provide market value valuations of your property. Opteon does not provide accounting, specialist tax, investment or financial advice.
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