This article was first published in the August 2025 issue of TerraWise Insights. To get the latest updates and insights, subscribe today.

There’s a phrase you might’ve heard floating around ag circles recently – “know your number.” It’s got nothing to do with stocking rates or rainfall deciles. It’s about emissions intensity, how many emissions your farm produces per unit of product. That could be per tonne of grain, per kilo of lamb, or per litre of milk.

It’s not just about being “green”; it’s becoming the yardstick that markets, buyers, and banks are starting to pay attention to.

It’s a concept that European agriculture is already well across, and we are starting to see the shift here too. The good news is, Aussie farmers are well-positioned to get ahead of it.

What does it mean to “know your number”?

Your number is your emissions intensity. Because it considers both total emissions and total production, you can think of it as a measure of efficiency, how productively a farm manages its emissions to generate a commodity. A farm might have higher total emissions, but if it’s producing more efficiently, it’ll have a lower emissions intensity.

Think of it as how much bang (profit/product) you’re getting for every bit of carbon you emit?

Here’s how it might look in a Planfarm TerraWise Carbon Account Report:

Why European farmers already know their number

In Europe, many farmers are already required to report their emissions intensity to buyers, processors, and even banks. It’s embedded into supply chains.

But it’s not all red tape; some are now receiving premiums or preferential contracts by proving they’re below industry averages. It’s not hypothetical; it’s already happening. The ISCC (International Sustainability and Carbon Certification) is an example grain producers will be familiar with.

Why this matters for Aussie farmers

We’re not far behind, and are already seeing:

• Meat processors piloting emissions tracking.
• Grain buyers watching Europe closely, especially with the EU’s Carbon Border Adjustment Mechanism on the horizon.
• Banks offering green lending tied to climate-friendly practices that reduce emissions.
• Programs like AgVic’s Emissions Pilot helping Aussie farmers get started.

Australian (and particularly WA) ag is export-driven. If global markets move, we move with them. Luckily, many local farmers already run efficient systems, it’s just about proving it.

How to find out your number

You don’t need to be a climate scientist. If you’re keeping good paddock records and tracking inputs, you’re already most of the way there.

Advisors like us at Planfarm TerraWise can help calculate your numbers using your own data. If there are gaps in your data, we can make use of industry averages, assumptions and allocations and use the exercise to help you learn how to keep better track of your data and emissions.

The goal isn’t perfection. It’s about getting started so you can make informed business decisions.

What can you do with your number?

Once you’ve got it, you can:

• Benchmark against others in your industry
• Spot what’s driving your emissions (e.g. fertiliser, diesel, livestock)
• Track progress year on year
• Stand out to buyers looking for low-emission suppliers
• Be ready for carbon or finance opportunities

It’s not a feel-good figure; it’s a business tool.

Lower emissions = more efficiency = better business

This isn’t just theory. Reducing emissions often means using inputs more efficiently and reducing waste, which improves margins.

Improving emissions efficiency on farm doesn’t just benefit the environment, it can also reduce input costs and improve profitability. Research across Australian farming systems has shown that better planning around fertiliser use and livestock feed can cut emissions while improving margins.¹

Similar trends have been seen overseas. European research shows that farms using more efficient practices, like better rotations and fertiliser management, often have lower emissions and better financial performance, especially when input costs are high.²,³

These aren’t radical changes, they are smart, practical improvements farmers are already making such as improving Nitrogen Use Efficiency, utilising selective spraying technology or including legumes into crop rotations. Emissions data just helps your quantify the benefits on another level to productivity and profit.

Cutting carbon often means cutting waste. That’s just good business.

Final word: Don’t get caught off guard

Markets are shifting. It won’t be long before Australian buyers start asking about emissions intensity, and expecting you to prove it.

Those who act now, who know their number and use it to make smart moves, will be best placed to grow, adapt, and lead.

Footnotes:

1. Machon, J. et al. (2024), “Western Australian broadacre farming systems: Reducing emissions while maintaining profitability”, Agronomy Australia Conference Proceedings.

2. De Bo (2021), “Is there a joint lever? Identifying and ranking factors that determine synergies or trade offs between GHG emissions and profitability on dairy farms”, Agricultural Systems.

3. IEEP (2024), “The Costs and Benefits of Transitioning to Sustainable Agriculture in the EU: A Synthesis of Existing Knowledge.”