module nine diversification and other income earning opportunities

MANAGING INDIGENOUS PASTORAL LANDS

Pub no. 14/025

McClelland Rural Services Pty Ltd diversification and MODULE 9 other income earning opportunities Contents

Introduction 3 List of Tables Sub-leasing or Letting Grazing Licences 5 Table 9.1 S mall Scale Abattoir Activity in the 14 Agistment 8 List of Photos Agistment WA 8 Cover Photo – Dale Gorge Agistment in NT 8 Karijini National Park Agistment in Qld 8 Photo 9.1 H ome Valley Station 13 Contracting 9 Photo 9.2 G unbalanya Abattoir 15 Contractor Duties 9 Photo 9.3 Elijah Whitehirst, Owner Duties 10 Gunbalanya Abattoir’s First Employment on Non-Indigenous Indigenous Apprentice 15 Cattle Stations 11 Photo 9.4 M osaic Burning at Fish River Station NT 17 Employment as Rangers 11 Mining Royalties and Employment 12 Operating an Indigenous Training Business 12 Burks Park Training Centre WA - horsemanship, cattle handling 12 Myuma Group - Plant hire, construction, mining, horticulture, hospitality, catering 12 ILC Roebuck Plains WA – On- the- job cattle handling 12 ILC Queensland Stations – On- the- job cattle handling 12 Tourism 13 13 Small Scale Abattoirs 14 Gunbalanya Meats 15 Palumpa 16 Never Never Meatworks (Mataranka) 16 Other abattoirs 16 Carbon Farming 17 Carbon Farming Initiative 17 Business Support and Grants 17 Issues to Consider 18 Northern Models 19

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Introduction

Traditional Owners (TOs) through Aboriginal corporations have title to significant areas of pastoral land in northern Australia. Although the corporations represent their local communities, they cannot employ everyone from these communities on their pastoral properties.

Land ownership of pastoral properties, in addition to its cultural significance, may best be viewed as an investment by Aboriginal corporations which can provide a return to management and opportunity for capital growth. Even this may be limited because of the size, stage of development and livestock carrying capacity of some properties.

Nevertheless, the sustainability of Indigenous pastoral communities can be enhanced through land and cattle-based diversification and other income earning opportunities which help to broaden economic activity, and create a more balanced income stream.

Remote pastoral communities can also share in other expanding economic activities not directly related to cattle raising such as tourism, mining and carbon farming. If these activities occur on or near homelands, it will provide social cohesion through attachment to the land, access to sacred sites as well as cultural and traditional activities including hunting, fishing and gathering, underpinned by Native Title. Diversification and Income Earning Activities Module 9 expands on land-based diversification opportunities available to Indigenous pastoral rural communities to:

• increase their income • reduce business risks from relying solely on the cattle market for income • provide their people with a broader range of skills to improve their employment prospects. The module also provides examples and models of the available business opportunities. Implementation requires more investigation by Indigenous pastoral interests and communities through business plans, and sourcing of finance or assistance programs where necessary.

Activities covered in this module are as follows: Sub-leasing and Agistment Indigenous-owned properties which do not have the cattle, or means to finance cattle, can still utilise the available land and labour by being paid fees by other people to run cattle on their land. Such land use agreements involve sub-leasing, provision of grazing licences or agistment. Contracting Land use agreements, and the necessity for Indigenous owners to operate their own properties, opens up income earning opportunities for contractors from communities to perform mustering and fencing services. Other opportunities include earning fees for service to control fires, weeds and feral animals.

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Employment on Non-Indigenous Cattle Stations Non-indigenous cattle stations. particularly corporations, have a policy of directly employing and training people from local Indigenous communities. Employment as Rangers Environmental activities can extend to paid employment as rangers as part of the ‘Working on Country’ Program. Mining Royalties and Employment Royalties from mining activity in northern pastoral areas are an important source of finance for many remote Indigenous communities and Land Councils. Mining companies also have a corporate social responsibility to employ local people. Operating an Indigenous Training Business Indigenous groups can provide training in cattle management, construction and cultural heritage. Small Scale Abattoirs Some Indigenous corporations are interested to become more involved in meat processing through ownership of small local abattoirs that kill their own cattle, and marketing and retailing the meat to local communities and tourist and mining businesses and settlements. Tourism Tourism is an expanding industry throughout northern Australia. Communities could be involved through ecotourism, and creative artistic and cultural activities. Ownership and employment possibilities in the region include roadhouses, hotels and motels at centres, which are not located on land used for pastoral activities. Other community possibilities are bee-keeping and bush tucker-related enterprises. Carbon Markets There are a range of opportunities emerging for Indigenous landowners in the carbon market Carbon sequestration, abatement and storage and biodiversity protection, are emerging as a new economy in northern Australia.

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Sub-leasing or Letting Grazing Licences

Traditional Owners may agree to sub-lease their land or grant grazing licences (in the case of the Northern Territory (NT)) to other pastoralists to run their cattle or to allow use for non-pastoral activities (See also Land Information Module 3). Those who wish to run cattle on unutilised Indigenous land may find this attractive, if they do not wish to invest in more land themselves. It gives access to alternative markets, allows expansion of their herd without borrowing to purchase land, and can provide the third party lessee with some protection against falling land values.

These land use agreements are contracts, and it is essential that understanding be reached on the specific terms that are to apply to the contract. Terms or arrangements should be committed to writing and signed by all parties. Agreements may apply to all or part of the property and there may also be instances of multiple agreements on the one property.

Sub-leasing or agreeing to a grazing licence can be a long term strategy for properties with limited pastoral potential, or as part of a transitional strategy for holdings with significant pastoral potential. In the former case, the emphasis of the sub-lease agreement will be on financial returns, while the latter case should also cover the transfer of skills and knowledge. However, a depressed cattle market can make it difficult to attract interest from third parties wishing to enter into sub-leasing or grazing licence agreements on Indigenous lands, since both parties must be able to profit from the arrangement.

In (WA) and Queensland (Qld), where Indigenous properties generally occupy pastoral leases, sub-leasing of all or part of leasehold land requires the written approval of the Minister. At present, there are 10-12 Indigenous Pastoral Leases with sub-leases in the Kimberley and Pilbara. As all WA pastoral leases expire on 30 June 2015, no sub-leases can be approved for a period extending beyond 29 June 2015.

In the NT, most Indigenous pastoral activity takes place on Aboriginal Land Trust areas which is Aboriginal freehold. There, the negotiation of grazing licences between Traditional Owners and other local and interstate pastoralists takes place through Pastoral Land Use Agreements (PLUAs) driven by the Land Councils under the Indigenous Pastoral Program (IPP). Consultations found that some 17 properties controlled by Traditional Owners in the NT have issued PLUAs, under Section 19 of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth) (ALRA). These land use agreements have been entered into with non-Indigenous and Indigenous operators, including the Indigenous Land Corporation (ILC). However, these are in a state of flux because of the downturn in the cattle market.

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In all three jurisdictions in northern Australia, there are various types of agreements which can benefit Traditional Owners and local communities through the pathways listed below, or a combination of all or some:

• an annual fee from sub-leasing or licensing and may include a portion of the profit from the cattle enterprise being conducted on the sub-let land • fee for services such as rangeland and station operations, fencing and mustering contracts • provision of training for young people and interested mature people • sustainable grazing levels, compatible with cultural and natural resource values • redevelopment of pastoral infrastructure for the future benefit of Traditional Owners • provision of Indigenous ranger services for environmental and rangelands monitoring and management • ability for Traditional Owners to run their own herd • maintenance of land rights involving access to Country to hunt, fish and visit sacred sites • maintenance of community living areas.

The owner of the cattle may look after management and marketing, or utilise the management services of the land owners. In both cases the type and number of stock should be stated and properly identified, particularly if there are multiple agreements on the one property. The ability to commence a sub-leasing or licensing agreement may require development assistance from the ILC, to prepare a property management plan and erect basic infrastructure.

Indigenous Pastoral Program (IPP) staff in the NT, monitor pastoral-related activities and ensure terms and conditions and protocols are complied with, such as land management, infrastructure development, animal welfare, employment, weed and feral animal control.

The term of grazing licences issued in NT to date has largely been 5 + 5 years. External interest in longer-term proposals persists, but faces understandable difficulties in gaining the interest of Traditional Owners, due to perceived conflicts with existing community land uses and many long-held but undeveloped aspirations of Traditional Owners, for the use of their land and property.

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Sub-leasing and Grazing Licences

• Traditional Owners can agree to sub-lease their land or grant grazing licences (in the case of NT) to other pastoralists to run their cattle. • Sub-lease agreements in WA & Qld need the approval of the Minister. • In the NT, Land Councils organise PLUAs in accordance with Section 19 of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth) (ALRA). • Terms or arrangements in the contract should be committed to writing with all parties signing off. • Agreements may apply to all or part of a property. • Multiple agreements can exist on the one property. • The term of the lease can be 5 + 5 years or longer by negotiation. • TOs earn an annual fee. • Redevelopment of pastoral infrastructure can be included in the agreement for the future benefit of TOs. • TOs may generate employment for the local community through the provision of fee for services, including rangeland and station operations, fencing, mustering and environmental controls. • Training may be provided. • Seek assistance from Indigenous Land Holder services in WA, or the Indigenous Pastoral Program in NT.

Further Information on Subleasing and Grazing Licences Subleasing WA

Grazing Licences NT

Subleasing Qld

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Agistment

Agistment is an arrangement with a definite period over the short to medium term, (up to three years) where the owner of the property manages a third party’s livestock. As with sub-leasing, agistment agreements are contracts requiring arrangements in writing to be signed by all parties. Agistment in WA When considering approaches for agistment, owners of pastoral leases in WA need to be aware of the need for prior written permission from the Pastoral Land Board. Under the Land Administration Act 1997, the Board is required to ensure that pastoral leases are managed on an ecologically sustainable basis, so it needs to assess the effect of agistment proposals on the condition of the pastoral lease to be used. Obtaining permission is not difficult. A letter to the Board is required providing details of the agistment proposal, including:

• type of stock to be agisted • number of stock involved • duration of the agistment proposal • statement on the current rangeland condition and the numbers of your own stock, if any, to be located on the subject land • stock to be run together or kept separate • location on the lease of agisted stock - whole of lease or individual paddocks • stock management responsibilities/arrangements • other relevant management comments.

Once the proposal is received, the Board will make an assessment using office records. This ensures a quick response. Applications for periods of more than one season or large numbers of stock will be referred to the Department of Agriculture and Food for comment in the first instance. Permission to allow agistment may be conditional, and it is the pastoral lessee’s responsibility to monitor the impact of additional grazing on the rangeland to ensure land degradation does not occur. The pastoralist must also advise of any subsequent changes to the initial details of the agistment supplied to the Board.

Agistment WA www.rdl.wa.gov.au/publications/Documents/Forms/DispForm.aspx?ID=316

Agistment in NT Agistment activities in NT (Pastoral Leases or Aboriginal Land Trusts) do not require consent of the Pastoral Lands Board (PLB).

Agistment in Qld In Queensland it is necessary to lodge the details of the relocation of stock, which are likely to be located on the second property for 12 months or more, with the Personal Property Securities Register. The rationale for registration is to ensure that third parties are aware of ownership of the livestock, when they are de-pastured on someone else’s property. 8 back to top MODULE 9 diversification and other income earning opportunities

Contracting Indigenous people in the pastoral industry can earn income off-farm by contracting to supply services to other pastoralists. Contracting services can include:

• mustering cattle • fencing • yard building • weed and feral animal control • earthmoving

These services may involve establishing and managing contracting businesses. If you set up a contract business you should have an Australian Business Number (ABN) and public liability insurance. If you employ people you are liable for superannuation, workers’ compensation, and pay as you go (PAYG) taxation. You must also be able to control the way work is done, so there is no dispute with the property owner. Although specific legal advice on contracts cannot be provided in this Manual, the agreement must be practical and negotiable to be mutually beneficial to the contractor and the owner.

Some practical points which can be included in a mustering contract (in addition to the above legal requirements) are: Contractor Duties • Quote to be expressed as ‘price per head ’( for all cattle that come through the yards) • Supply all labour to complete the job • Contractor must ensure that he has a Workplace Health and Safety policy in place and that it is adhered to at all times • Supply all plant & equipment to complete mustering, i.e. bikes, horses, saddles, vehicles, trucks, etc. • Contractor to be self-sufficient with regard to all cooking and power requirements, if required to camp at the yards • Supply all helicopters and avgas • Contractor to indicate whether they will supply own fuel or will buy fuel from station. • Must supply appropriate transport means and bear all costs for any interstation carting • All weaners and sale cattle to be delivered to the main station yards • Supply own stores

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• Husbandry a. All cattle to be bang tailed (if unable to be bang tailed, to be painted) b. All females to be aged c. All weaners to be given agreed injections, d. All male calves and weaners to be given agreed HGPs e. All weaners and calves to be branded, dehorned (including veterinary treatment), earmarked and castrated f. All young cattle to be tagged with NLIS devices g. Dehorn all cows with horns (including veterinary treatment) • Contractor to be provided with own killer (meat) by station management • No animal cruelty is acceptable • All workers should be competent, dressed in appropriate attire so as to perform their mustering duties, e.g. hats and boots, etc. and will comply with station behavioural code of conduct • Must keep an accurate account of all cattle numbers, records and description, i.e. sex, age, type, etc. Also, which paddock cattle have come from and placed back. • Contractor will put all cattle back into their paddocks as instructed by management • No drugs or alcohol • No firearms Owner Duties • Supply agreed chemicals and vaccination for animal husbandry. • Supply gas for branding and all brands and earmarks. • Station will provide all hay and feed the weaners and sale cattle in the main station and outlying yards. • Will provide all fencing and yards in workable conditions for the mustering to be carried out appropriately. • Main roads to be graded — Internal roads will be graded while mustering process is ongoing in order for the mustering to be carried out appropriately. • Supply the contractor with meat — kills to be done by station management only.

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Employment on Non-Indigenous Cattle Stations Some non-indigenous pastoral companies have corporate social responsibility or equal opportunity employment policies, to actively employ and train youth from local communities. Several use experienced Indigenous staff to engage and motivate small numbers of new employees. They recognise the importance of cultural awareness and the benefits of recruiting from local communities, and that establishing relationships is a lengthy process. (See Human Resources Management Module 8) Employment as Rangers The ‘Working on Country’ program for Indigenous rangers recognises land management work as paid employment for environmental services. This includes managing biodiversity, feral animals, weeds, land disturbance, and protection of cultural sites.

Ranger work plans are guided by community elders who have traditional knowledge in how to care for country. This is passed down from generation to generation to ensure culture remains alive. A combination of cultural and traditional knowledge and western technologies is used to achieve work tasks.

Through this program, the buys environmental services from Indigenous communities who employ rangers to undertake this important work. It also provides nationally accredited training and career pathways for Indigenous people in land and sea management.

‘Working on Country’ is expanding and has resulted in significant improvements in income — Indigenous rangers now earn above the gross median income for all Australians.

Further Information on Employment as Rangers Factsheet: Working on country

Ranger activity Northern Territory

Queensland

Western Australia

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Mining Royalties and Employment Mining agreements involving royalty and compensatory payments are directed at providing benefits to Indigenous communities. This could include employment and training programs, business enterprise development programs, payment of limited cash compensation, and heritage protection. In addition to royalties, mining companies can offer assistance under their Corporate Social Respon- sibility policies. In all cases, if associated with Aboriginal leases, it is important for communities to decide how these funds should be directed in the best interests of pastoral development. (See Land Information Module 4). Operating an Indigenous Training Business Indigenous people with particular skills can derive income by operating a training business. There are number of models which can be followed. Burks Park Training Centre WA - horsemanship, cattle handling The Bina-Waji Nyurra-Nga Aboriginal Corporation, assisted by Jayun Indigenous Corporate Partnerships and Kimberley Indigenous Management Support Services (KIMSS) has set up a business at Burks Park, in Halls Creek WA, that provides residential, pre-vocational and vocational training and jobs to young people. Trainees have the opportunity to attain a Certificate II Agriculture (Beef Production), which is an accredited TAFE qualification. Myuma Group - Plant hire, construction, mining, horticulture, hospitality, catering The Myuma Group, a traditional owner group from the Georgina River Basin on the NT-Qld border, has a company which runs a plant hire group and employs and delivers accredited training programs to Indigenous people in civil construction work and mining as well as horticulture, hospitality and catering. The number of workers ranges between 20 and 50. ILC Roebuck Plains WA – On- the- job cattle handling The ILC has set up training facilities at , 30 km east of Broome in the Kimberley region of WA. Together with the adjacent Roebuck Export Depot, an Indigenous employment and training initiative is providing ongoing benefits to Indigenous people in the region. Roebuck Export Depot (RED) is a state-of-the-industry, AQIS‑registered live export depot, built by the ILC to create training and job opportunities for Indigenous people. Trainees at Roebuck Plains Station and Station are rotated through RED, to increase their experience and skills in the cattle industry. ILC Queensland Stations – On- the- job cattle handling The ILC’s Queensland stations Crocodile/Welcome, Urannah, Bulimba, Merepah and Mimosa, all provide employment-based training programs for Indigenous youth.

Further Information on Indigenous Training Businesses Burks Park

Myuma

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Tourism

Indigenous communities can gain from taking part in the growing northern Australian tourist industry. Currently tourism on pastoral leases in WA is limited to low key pastoral-related tourism and in Queensland it must not become the dominant activity. Similar restrictions apply to pastoral leases in the NT, but not to Aboriginal Land Trusts.

Again there are a number of models which can guide communities aspiring to become involved. Home Valley Station The ILC has established Home Valley Station as a significant tourism business, based on pastoral activities operating on the station. Local Indigenous people are employed and trained in all aspects of the tourism business while the cattle business is a low-cost operation relying on the annual harvest of unbranded animals. In 2010–11, a residential employment-based training program was undertaken for 20 trainees. Trainees undertook Certificates II and III in Tourism, Hospitality, Automotive Mechanical and Horticulture. Photo 9.1 Home Valley Station

Further Information on Ecotourism WA Pastoral Diversification Review Report

Diversification of Leases for Agricultural Purposes

Land Matters magazine

Home Valley Station

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Small Scale Abattoirs

There is an unsatisfied demand for local beef in northern Australia local communities, and from the tourist and mining industries. Beef is processed in southern states and then shipped over large distances to the north when cattle could be killed and processed locally. There is also scope to kill and export meat from multispecies abattoirs including buffalo and camel. Involvement in meat processing can include Indigenous corporations killing their own cattle, retailing through a local butcher shop, employment and training and marketing. It is essential that the market outlets be identified, and that small scale investment proposals be subject to a business plan, before a community embarks on local beef processing.

The NT Department of Resources, Primary Industry Division has recognised this potential and is collaborating with operators of existing small scale abattoirs at Gunbalanya, and Palumpa to upgrade facilities and is continuing to provide regulatory services and technical advice. It is also assisting with the design of new meat processing facilities at Elsey and Peppimenarti and the upgrading of Batchelor abattoir. Current and potential involvement in local abattoirs is summarised in Table 9.1.

Table 9.1 Small Scale Abattoir Activity in the Northern Territory

Abattoir Location Species and Market Livestock Source Development Throughput Stage

8 Indigenous community Gunalanya, Station supermarkets, 330 km E of Cattle, Buffalo originating from Gunbalanya meat wholesaler Operational Darwin 30/week Strangways/East Elsey and retailers and and Waliburru Voyager Indigenous Tourism Australia Kalkarindji Store, 460 km E of Cattle Kalkarindji Yarralin, Pigeon Hole Wave Hill area Operational Darwin 5/week and Lajamanu 230 km SW Cattle Palumpa Wadeye pop. Palumpa Palumpa Station Operational of Darwin 20/week 3,000 Never Never 90 km S of Cattle Local, tourists and Design and Elsey Station Meatworks Katherine 10–20/week mines construction 320 km S of Peppimenarti Cattle Local communities Local Proposal Darwin

Cattle, Renovations 98 km S of Batchelor Buffalo, Export Feral, NT and awaiting Darwin Camel re-opening

Domestic, halal, 40 km N of Cattle, Camel Wamboden capital cities Feral, Central Australia Operational Alices Springs 30/week and pet food

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Gunbalanya Meats In terms of models for Indigenous involvement, the Gunbalanya Meats abattoir at Gunbalanya in west Arnhem Land is of particular relevance. The ILC, under a Pastoral Land Use Agreement, has increased the capacity of the business to process 30 bodies of beef and buffalo per week by expanding the abattoir facilities and actively marketing meat products. Meat is processed and sold to a wide range of customers, including eight Indigenous community supermarkets, various NT meat wholesalers and retailers and Voyages Indigenous Tourism Australia (Ayres Rock Resort, Mossman Gorge and Home Valley Station).

Photo 9.2 Gunbalanya Abattoir

Photo 9.3 E lijah Whitehirst, Gunbalanya Abattoir’s First Indigenous Apprentice

Source: Steven Schubert, ABC Rural

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Palumpa The Palumpa abattoir, 230 km south west of Darwin, has been cited as a successful small meatworks with a throughput of 20 head per week sourced from its own cattle from the flood plains. Palumpa Abattoir has a ready market for beef at Palumpa (population of 500) and at Wadeye (Port Keats), which is the largest Indigenous community in the NT (population of over 2,000). Never Never Meatworks (Mataranka) The Ngarranbarrdji Development Corporation Limited represents the Mangarrayi people who are the Traditional owners of Elsey Station, near Mataranka, 100 km south of Katherine. The Corporation has developed its own concept plan for a small scale meatworks. The Never Never Meatworks will process 10 to 20 head per week of cattle and buffalo. It has ability to scale up to 100 per week as the skill level is developed. The meatworks design includes a kitchen and butcher shop and is an innovative design by the local people. This will be the first greenfield plant built for many years in the NT. The meatworks will support local and surrounding communities including the Jilkminngan Community which has a population of 300 people and is situated 15 km away from the site. It also has the potential to supply mining sites and the drive-by tourist market. The meatworks has 12 month sealed road access and is located on the Savannah Way, the major tourist drive from Townsville to Broome. Other abattoirs One example of a multi species abattoir is the Wamboden abattoir on Bond Springs Station in Central Australia which processes cattle and camels. Another is the Batchelor abattoir south of Darwin, which was to be leased by Windy Hills Australian Game Meat. The facility has been renovated and there are plans to process cattle, buffalo and camels. Wamboden and Batchelor abattoirs are not owned by Indigenous people, but offer opportunities for employment in capture and processing of camels.

Further Information on Small Scale Abattoirs Indigenous Participation, Department Of Resources, Primary Industry Division, Reporting on the Northern Territory Agribusiness Industry Strategy

Beef Processing at Gunbalanya Meat Supplies (GMS)

Camel Processing and Marketing

RIRDC Assessing the potential for a Commercial Camel Industry in Western Australia

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Carbon Farming

Carbon sequestration, abatement and storage and biodiversity protection are emerging as a new economy in northern Australia. Carbon Farming Initiative The Australian Government’s Carbon Farming Initiative (CFI) is a carbon offset scheme that has been established to provide new economic opportunities for farmers, forest growers and landholders and help the environment by reducing greenhouse gas pollution.

Some methods of carbon offsetting, including wildfire abatement (in northern Australia) and forestry management, are particularly relevant to , because they have the potential to use traditional environmental knowledge. If green house gas emissions can be reduced, carbon credits created under the CFI can be sold to Australian industry to help meet their regulatory requirements for pollution reduction.

The scheme, which commenced on 1 July 2012, brings potential opportunities for Indigenous landholders in the compliance market. In simple terms, this legislation provides a framework for how to generate and verify carbon credits so they can be sold. Photo 9.4 Mosaic Burning at Fish River Station NT

Source: ILC Business Support and Grants A Capacity Building and Business Support stream ($17.1m over five years) will help Indigenous communities establish or participate in carbon farming projects. This stream will be delivered by the Department of Sustainability, Environment, Water, Population and Communities. Support includes giving Indigenous communities access to knowledge and information to help guide their decision- making in relation to participation in the carbon market.

Grants of up to $300,000 are available to Indigenous organisations and individuals with an existing feasibility assessment or business plan to implement carbon farming businesses.

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Funding is available to:

• employ a carbon farming project manager • progress carbon farming business development • seek specialist legal, contractual, governance or business development advice • implement carbon farming projects and assist in the establishment of carbon farming enterprises and related activities. Issues to Consider Projects that offset carbon have the potential to generate income. However, there are many issues that landowners need to consider before undertaking a project. These include:

• choosing the right type of project activity for the land • determining whether the new land use activities will result in carbon abatement, that is additional to what would occur without the new activity • deciding whether the long-term commitment that may be needed to make the abatement permanent is realistic • achieving reductions in greenhouse gas emissions that are measurable and verifiable.

Although there is general potential under new legislation for Indigenous pastoralists to generate CFI credits from restoring Australia’s rangelands to receive Kyoto Australian Carbon Credit Units, existing practical models only involve abatement from savanna burning.

If you think your property might be eligible for a carbon offset project and you are interested in finding out more, contact the ILC. The ILC provide the following guidelines for fire projects:

• Land Eligibility – rainfall: Under the current methodology, only land that receives average annual rainfall greater than 1000 mm is eligible. A methodology for land that receives 600 – 1000 mm per annum is currently being developed. • Land Eligibility – vegetation types: Your land should support the vegetation types to which the methodology applies. • Baseline: The fire history (baseline) of your property should support an abatement opportunity. If late dry season fires are not a common feature of your property, there may be little abatement opportunity. • Resources: You must have the resources and necessary skills to undertake the burning program each year. • Opt-out provisions: Understand that there is no requirement for permanence and you can opt-out of a fire project at any time. • Carbon Accounting: Accounting for fire projects is technical in nature and relies on information which can be provided by external organisations such as Northern Australia Fire Information (NAFI). • Neighbours: Manage your relationships with neighbours. • Legal: Know your legal obligations with respect to the use and control of fire.

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Northern Australia Models There are two models being trialled or in existence in northern Australia - one through CFI, and the other an agreement with a private company. Both involve savanna burning. Fish River Savanna Burning Under the CFI, the Clean Energy Regulator has approved a savanna burning regime at Fish River a 1,800 km2 property 200 km south of Darwin. Fish River’s savanna burning project will be the first Indigenous project to earn carbon credits. The ILC, which owns the property, will be able to earn 20,000 CFI carbon credits a year for strategic fire management.

The methodology reduces total greenhouse gas emissions from the property, benefiting the environment, and potentially earning an income stream from carbon credits for Traditional Owners.

By using methods that draw on Indigenous pattern burning and science, the area of land that had been historically burnt each year by wildfires has been reduced from 69% to 3% of the property. West Arnhem Fire Management Agreement The West Arnhem Fire Management Agreement (WAFMA) was brokered in 2006 by the area’s Traditional Owners, the Northern Territory Government, the Northern Land Council, Tropical Savannas CRC and ConocoPhillips, to offset some of the greenhouse gas emissions generated at ConocoPhillips’ liquefied natural gas plant in Darwin Harbour. This agreement recognises the significant greenhouse gas abatement achieved through savanna fire management carried out by Indigenous ranger groups. ConocoPhillips pays around $1million a year to the WAFMA project to provide this fire management service for a period of 17 years.

Carbon Farming for Northern Indigenous Pastoralists

• Carbon Farming Initiative (CFI) is a carbon offset scheme for pastoral- ists to help the environment by reducing greenhouse gas pollution. • Carbon credits created under the CFI can be sold to Australian industry, to help meet their regulatory requirements for pollution reduction. • Business support and grants are available. • Under CFI, carbon credits are created by early savanna burning in the dry season to reduce wildfire emissions later in the year (Fish River pilot scheme). • Under the West Arnhem Fire Management Agreement (WAFMA), the credits created by early dry season burning of savanna are bought by ConocoPhillips to offset greenhouse gas emissions generated by its liquefied natural gas plant in Darwin Harbour. • Contact ILC for assistance with proposals.

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References to Carbon Farming Indigenous Carbon Farming Fund

Clean Energy Regulator - Carbon Farming Initiative

NAILSMA - Carbon Project

Fish River Carbon Farming Initiative

Carbon Farming WA

ILC Carbon Offsets

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