From confusion to commitment - Charlie Arnott's carbon journey

Eighth-generation grazier Charlie Arnott first became aware of the importance of carbon in the 1990s while studying rural science at the University of New England. Over the years, he saw the element work its way from his textbooks into news reports about the growing 'climate emergency'. In the early 2000s, the concept of carbon farming - a way of drawing carbon dioxide from the atmosphere and sequestering it back into the soils - was floated as a remedy to climate change.

In 2007, Charlie got wind of a local Carbon Day. There was no carbon market at the time, but there was lots of talk, and Charlie, who had just started on his regenerative journey, felt he needed to be there. Expecting only a handful of farmers to show up, he recalls that 'the place was packed, and 98% of the attendees were conventional farmers.' As for what he learned: 'I couldn't tell you what they talked about, but I do remember being confused when I walked out. I think everyone was.'

'I couldn't tell you what they talked about, but I do remember being confused when I walked out. I think everyone was.'

Charlie made sure he kept his finger on the pulse from then on, but whenever he ventured back into the information days, debates and policy updates, he just became more confused. A decade later, Charlie Arnott found himself perched high on the carbon fence. And he was far from alone. Such is the uncertainty around carbon farming and the transition to net zero by 2050 that, in 2023, AgriFutures Australia initiated a fact-finding trip across the nation. The subsequent Carbon Conversation Report captured the 'confusion, annoyance and overwhelm' expressed by the 300 participants involved. Charlie's challenges echoed many of the participants' concerns outlined in the report, plus a few more besides.

An unclear path and the odd bushranger

Charlie's carbon journey has required much soul-searching as well as education.

One of Charlie's earliest challenges was dealing with the constantly changing nature of the carbon conversation and the uncertainty around what a carbon scheme might ultimately look like. 'There didn't seem to be a clear line of sight from, "How do I get into it; what do I do; how do I make money out of it?'" reflected Charlie. 'I knew how to put carbon into the soil; however, the science, legislation and economics were very hazy.'

Not wanting to get caught up with a flawed scheme or the wrong people, Charlie stayed perched on the top rail.

Even though the carbon path remained unclear, as more organisations and people he respected became involved, Charlie could see very real opportunities emerging. However, given Australia's ongoing water buyback fiasco, he also knew 'there'd be a few bushrangers out there ready to take advantage of farmers who were a little naive or desperate to make a quid.' Not wanting to get caught up with a flawed scheme or the wrong people, Charlie stayed perched on the top rail.

Philosophical challenges

Hanaminno is more than a property, it's a classroom, a teacher and a business partner.

Charlie first began implementing unconventional practices a year or two before attending his first Carbon Day in 2007. Since then, he's become one of Australia's foremost communicators and educators in the regenerative farming space. For Charlie, his family farm, Hanaminno, is more than a property; it's a classroom, a teacher and a business partner.

While sequestering carbon is a natural by-product of many of his practices, the 'commodification of carbon' left him uneasy.

Charlie's mission is simple: take care of the environment so it can grow the best food and fibre possible. But while sequestering carbon is a natural by-product of many of his practices, the 'commodification of carbon' left him uneasy. As did the idea of being bound by a contract for the next 25 years. 'It wasn't just me I'd be signing up; I'd be signing up my kids,' says Charlie.

Early adopters missing the carbon boat

As the carbon conversation continued and matured, other aspects kept Charlie from leaping. Like many pioneers of holistic practices, the Boorowa farmer was concerned that significant carbon gains had already been made on Hanaminno and that he may have 'missed the Carbon boat'. He worried that there'd be limited room for improvement compared to more conventionally run enterprises and the run-down properties venture capitalists were snapping up for their enormous carbon-building potential.

Messy conversations and political agendas

While those questions, challenges and hesitations banged around inside Charlie's head, outside, there was an even bigger, messier conversation going on. Naysayers have long accused the carbon farming community of having drunk the 'Carbon Kool-Aid' and derided project providers as merchants of smoke, mirrors and snake oil. And as for the carbon farming sector, they are only just now getting on the front foot when it comes to sharing the good news and science.

In 2023, the Australian Carbon Fund issued its first major allocation of Australian Carbon Credit Units (ACCUs). Over 250,000 ACCUs were allocated to 6 carbon projects, one of which sequestered over 126,000 tonnes within its five-year reporting period. This was a coming of age for the carbon farming sector, but negative opinion pieces in the press quickly rained upon any celebrations. For an industry already defending its integrity against a rising tide of anti-livestock and anti-farmer agendas, this was hardly the kind of media reception to instil confidence. Carbon and farming have both become political, making Charlie wonder, 'Would I be signing up the land I'm stewarding to a bigger, unseen agenda that may not have farmers' best interests in mind?'

Yet despite all the confusion and conjecture, contracts were being signed, drill rigs were fanning out across the country, core samples were being bundled off to labs and ACCU payments were starting to flow. Carbon farming was finally a reality.

Charlie has been using MaiaGrazing systems for years. He likes the grazing management software and enjoys working with their people. So when Maia formed Atlas Carbon in 2022, it was as if the stars had aligned. Here was a carbon company created by people he liked and trusted. There were also clearer frameworks now and more science. And while policy was still finding its way, it showed no sign of doing an abrupt u-turn, especially with the inevitable dawn of natural capital accounting fast approaching. Partnering with Atlas didn't exactly make Charlie leap off the fence, but rather get off in stages. The provider's 3-stage process - consider, assess, commit - gave him the confidence to proceed.

Data plays a sizable role in the 'consider' and 'assess' stages of the process. Seven years' worth of data collected via the MaiaGrazing platform and periodic soil testing through the Land to Market beef program demonstrated Hanaminno's potential for real carbon growth, even before deep baseline testing had begun.

'When it came to committing,' Charlie reflects, 'the people and relationships were crucial. You must be happy that they'll be on your team for the next 25 years.'

The other part of the decision equation was more subjective. 'When it came to committing,' Charlie reflects, 'the people and relationships were crucial. You must be happy that they'll be on your team for the next 25 years.' Charlie has worked with Atlas's Chief Grazing Officer, Bart Davidson, for many years. 'Bart lives and breathes ag,' says Charlie. 'He's incredibly meticulous and passionate about everything he does, so we were confident he'd be around for the long haul.'

For Charlie to begin the process, he had to meet 3 criteria: Hanaminno received an average of 500 mm rainfall a year (precipitation is an indicator of soil carbon potential), he was willing to adopt practices that build soil carbon and he was willing to commit to a 25-year contract to maintain those practices as part of the Australian Carbon Credit Units (ACCU) Scheme requirements.

Hanaminno receives over 500 mm a year, so that was an easy tick. As for implementing the recommended carbon-building practices, Charlie was excited about that prospect, having seen the benefits that these practices can offer when executed well. The ACCU Scheme acknowledges that every farm is unique and provides a range of practices farmers can select from, so Charlie was reassured that he wouldn't be pressured to adopt practices he wasn't comfortable with. As for the 25-year commitment, Charlie and wife, Angelica, had had enough kitchen table discussions over the years to feel they were making an informed choice for their farm and family. They could also see the global significance of what they were taking part in.

The project has helped Charlie pull back the ground covers and dig even deeper into his soils, unearthing a few surprises.

Charlie and education partner Hamish Mackay mixing up a biodynamic brew.

As an early adopter of many of the scheme's recommended practices, Charlie is well aware of the benefits of time-controlled grazing, natural sequence farming, multi-species pasturing, contouring and a whole lot besides. When the breeze is up, many species of native grasses ripple across 75% of his 5,000-hectare property. His livestock roam chemical-, antibiotic- and drench-free. In good seasons, Hanaminno is a regenerative showcase. In tough seasons, it's resilient and bounces back faster than most. While the benefits of his holistic approach, such as biodiversity build, production gains and overall farm health, are obvious on the surface, the project has helped Charlie pull back the ground covers and dig even deeper into his soils, unearthing a few surprises.

Preliminary assessment before the baseline test results proved to be as variable as the landscape. Basalt soils to the west of the property, which Charlie was confident would yield the highest carbon levels, were lower than anticipated, while some marginal areas scored better than expected. With a settlement history dating back to the 1820s, 200 years of shifting enterprise and land use have left an uneven impression across the carbon profile of Hanaminno. Atlas proposed a soil improvement program, recommending scaling up the existing on-farm compost production and spreading phosphate, lime and gypsum to optimise the mineral and element balance. Returning to mineral inputs after years of holistic farming required Charlie to soften his hard line on conventional practices.

Certification required a rethink on breed choices.

Becoming a certified carbon farmer has also encouraged Charlie to change his flocks from hard-to-manage composites (for fat lambing) to the steadier Merino. Easier on infrastructure like cell fencing, Merinos are ideally suited for the short, sharp, time-controlled grazing required for pulsing pastures. And there's the higher-quality wool, which Charlie calls the ultimate carbon sink. 'Once carbon is in wool, it stays there, and it doesn't burn.' Another of the project's benefits is that regular testing will allow the ever-curious Charlie to experiment, such as trailing holistic and biodynamic inputs against the conventional mineral inputs that the project blueprint recommended.

For Charlie, signing up to a carbon scheme feels like a natural extension of his regenerative journey.

For Charlie, signing up to a carbon scheme feels like a natural extension of his regenerative journey. It has become more of an exercise in fine-tuning and simplifying his operation rather than one of radical change. While Charlie's not about to try to advise other farmers of what to do on their own farms, he does offer this: 'If you're already interested in soil health and regen, chances are you're already in the game.'

For farmers and graziers considering the carbon farming journey, Charlie offers the following advice:

1: Understand the commitment. Depending on your stage of life, carbon projects can span 2 generations. Be confident that your family enterprise is being signed up to something that will be an asset, not a future liability.

2: Seek advice. Talk to people you respect about their carbon journey experiences, and seek independent advice to understand the accounting, taxation and legal considerations.

3: Learn. Carbon farming resources have come a long way since Charlie's first carbon day back in 2007. The Australian Farm Institute and AgriFutures Australia have created a Carbon Opportunity Decision Support Tool (CODST) to help primary producers navigate the complex carbon landscape. SoilCQuest has also created a comprehensive online course, Growing Soil Carbon 101, which unpacks carbon farming, the science of soil carbon and how to build it in cropping and grazing systems.

4: Look at relationships. Examine the motivations of the project providers and their people's track records. In today's marketplace, where people frequently change jobs and careers, ask yourself, 'Are the people I'm signing up with today likely to be with that business tomorrow?' Providers are profit-motivated, but the best are also motivated to help farmers thrive.

5: Tap into data. Carbon projects involve more than periodic testing; they require a whole-of-farm management approach. Charlie says, 'You can't manage what you're not measuring.' Grazing management tools are ideal for observing short- and long-term trends, setting KPIs and optimising the stocking rates, pasture levels and herd movements crucial to soil restoration and carbon sequestration.

6: Be Flexible. Be prepared to adopt new management practices, even if they push you out of your comfort zone.

7: Make peace with change. Charlie says change is inevitable in the carbon space. Regulations, methodologies and scientific opinions are continually evolving, and new advisory services and providers are getting on board all the time. 'Accept that changes will happen,' advises Charlie. 'The goalposts will shift, but they'll always be heading in the same direction.'

8: Never the perfect time. 'There will never be the perfect time to get off the fence,' says Charlie. 'One could argue that the longer you wait, the simpler it will be, but at some time, you have to make a decision, one way or the other.'