v. 141107
EXPOSURE DRAFT
Carbon Credits (Carbon Farming Initiative Reducing greenhouse gas emissions from
fertiliser in irrigated cotton) Methodology
Determination 2014
Carbon Credits (Carbon Farming Initiative) Act 2011
I, Greg Hunt, Minister for the Environment, make the following determination.
Dated
Greg Hunt [DRAFT ONLY—NOT FOR SIGNATURE]
Minister for the Environment
Contents
Part 1
Preliminary
1
2
3
4
5
Part 2
Name of determination
Commencement
Authority
Duration
Definitions
4
4
4
4
4
Irrigated cotton projects
6
Irrigated cotton projects
7
Part 3
Project requirements
Division 3.1
7
Eligible projects
Operation of this Part
8
8
Application for declaration
Emissions Intensity Reference Period Maps
8
9
10
Management action
Management actions
New management actions
8
8
11
Emissions intensity reference period
Determining the emissions intensity reference period
9
12
13
14
Project area requirements
Project area
Stratification
Mapping format and precision
Division 3.2
Division 3.3
Division 3.4
Division 3.5
10
10
10
Part 4
Net abatement amount
Division 4.1
15
16
The net abatement amount
The net abatement amount
Overview of gases accounted for in abatement calculations
12
12
17
18
Method for calculating net abatement amount
Calculation of the carbon dioxide equivalent net abatement amount
Inputs required by the Irrigated Cotton Calculator
13
14
Division 4.2
Subdivision 4.2.2
19
20
Subdivision 4.2.3
21
Part 5
Baseline emissions
The baseline
The variance discount
14
15
Project emissions
Project emissions
15
Reporting, record-keeping and monitoring requirements
Division 5.1
22
Operation of this Part
Application
Carbon Credits (Reducing greenhouse gas emissions from fertiliser in
irrigated cotton) Methodology Determination 2014
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2
Division 5.2
23
Offsets report requirements
Information in each offsets report
17
24
Record-keeping requirements
Records that must be created and kept
17
25
26
27
28
29
Monitoring requirements
General
Cotton area
Lint yield
Synthetic fertiliser
Green manure
18
18
19
19
19
Division 5.3
Division 5.4
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irrigated cotton) Methodology Determination 2014
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Part 1
Preliminary
11.1
Name of determination
This determination is the Carbon Credits (Carbon Farming Initiative - Reducing
greenhouse gas emissions from fertiliser in irrigated cotton) Methodology
Determination 2014.
21.2
Commencement
This determination commences on the day after it is registered.
31.3
Authority
This determination is made under subsection 106(1) of the Carbon Credits (Carbon
Farming Initiative) Act 2011.
41.4
Duration
Note See subsection 122(1) of the Act.
This Determination remains in force for the period that:
(a) begins when the determination commences; and
(b) ends on the day before this determination would otherwise be repealed
under subsection 50(1) of the Legislative Instruments Act 2003.
51.5
Definitions
In this determination:
Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.
cotton area in relation to a given year and project area, is an area of land within the
project area that is the aggregate of the paddocks on which cotton was planted and
irrigated.
Note The cotton area is a subset of the project area and is expected to change on an annual basis
due to a range of factors, including water availability and rotational cropping. The cotton
area does not include parts of the project area on which cotton was not planted in a given
year. The cotton area does not need to have a single boundary.
Cotton Research and Development Corporation means the statutory authority of
that name, established under section 8 of the Primary Industries Research and
Development Act 1989.
emissions intensity reference period is a historic period from which data is sourced
in order to calculate the emissions intensity of the baseline.
enhanced efficiency fertiliser means a fertiliser that can reduce nutrient losses
from the soil while increasing nutrient availability to a plant growing in that soil.
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green manure means a legume that is planted, but not harvested, on a given
paddock in order to improve the soil for a subsequent cotton crop.
historic management actions means all management practices undertaken with
respect to a project area during the emissions intensity reference period that could
impact on nitrogen fertiliser use efficiency.
Note Management practices that could impact on nitrogen fertiliser use efficiency are described
in subsection 10(4).
Irrigated Cotton Calculator means the Calculator of that name published by the
Department on its website to calculate the carbon dioxide equivalent net abatement
amount in accordance with this Determination and includes updates to the tool
published on the website which:
(a) update inputs and variables used by the tool consistent with the latest
National Inventory Reports and carbon dioxide equivalence and applicable
methods under s 10(3) of the National Greenhouse and Energy Reporting
Act 2007;
(b) are of a minor nature; or
(c) are necessary or incidental to updates referred to in paragraphs (a) or (b).
Note The Irrigated Cotton Calculator is available via the Department’s website.
irrigation status, in relation to a paddock, means whether water was applied to the
the whole area of the paddock at least once.
lint means unprocessed cotton; the fibrous material of a cotton boll.
National Inventory Report means the most recently published document that is:
(a) known as the National Inventory Report; and
(b) prepared by the Department in fulfilment of obligations that Australia has
under the Climate Change Convention.
new management action means a project management action that:
(a) is undertaken with respect to a cotton area during the crediting period; and
(b) differs from historic management actions.
A new management action can include an enhancement or improvement to a
historic management action.
Note New management actions must be consistent with section 10.
nitrogen fertiliser use efficiency means the ratio of lint yield to nitrogen, applied
via synthetic fertiliser.
paddock means a defined area of land with a single boundary within a project area
on which cotton could be grown during either the emissions intensity reference
period, the crediting period, or both.
project management actions means all management actions undertaken on a
project area during the crediting period.
stratification means the division of a project area into one or more paddocks.
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synthetic fertiliser means a product, including urea, applied to soil to enhance soil
fertility which has a manufacturer’s label that guarentees a minimum nitrogen
content:
(a) for solid fertilisers, greater than or equal to 0.5 per cent; or
(b) for liquid fertiliser and solid fertiliser applied in solution greater than or
equal to 0.1 per cent.
Note Synthetic fertilisers may include products with an organic base that are supplemented, where
necessary to meet the applicable minimum nitrogen contents, with inorganic nitrogenous
compounds.
t CO2-e means tonnes of carbon dioxide equivalent.
yield, with reference to cotton lint, means the amount (mass) produced.
Note Other words and expressions used in this determination have the meaning given by the Act. These
include:
crediting period
eligible offsets project
emission
greenhouse gas
legislative rules
offsets project
offsets report
project
project area
project proponent
Regulator; and
reporting period.
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Part 2
62.1
Irrigated cotton projects
Irrigated cotton projects
(1) For paragraph 106(1)(a) of the Act, this determination applies to an emissions
avoidance offsets project which aims to avoid emissions from the cultivation of
irrigated cotton by increasing the nitrogen fertiliser use efficiency of that process.
(2) A project covered by subsection (1) is an irrigated cotton project.
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Part 3
Project requirements
Division 3.1
Eligible projects
73.1
Operation of this Part
For paragraph 106(1)(b) of the Act, this Part sets out requirements that must be met
for an irrigated cotton project to be an eligible offsets project.
Division 3.2
83.2
Emissions Intensity Reference Period Maps
At the time of the application under section 22 of the Act, the project proponenet
must provide the Regulator with an annual map for each year in the emissions
intensity reference period in which there was a cotton area, stratified in accordance
with section 13.
Division 3.3
93.3
Application for declaration
Management action
Management actions
(1) For each year in the crediting period in which there is a cotton area, at least one
new management action must be undertaken either before or during the year which
aims to increase the nitrogen fertiliser use efficiency of the cotton area in respect of
that year.
(2) For each project area, a project proponent must provide the Regulator with the
following:
(a) a description of the historic management actions undertaken during the
emissions intensity reference period;
(b) a description of the new management actions undertaken during the
crediting period; and
(c) an explanation of how the new management actions are consistent with the
requirements in section 10.
103.4
New management actions
(1) A new management action for the purposes of subsection 9(1) must not be
inconsistent with the relevant myBMP (Best Management Practice) standard for the
action, as published by the Cotton Research and Development Corporation.
Note The Cotton Research and Development Corporation’s Best Management Practice standards
are available at: www.mybmp.com.au
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(2) At least one new management action undertaken for the purposes of
subsection 9(1) must be demonstrated to have the potential to increase the nitrogen
fertiliser use efficiency of the cotton area.
(3) Nitrogen fertiliser use efficiency can be increased by:
(a) improving the lint yield of the cotton area without a corresponding increase
in the rate of nitrogen applied via synthetic fertiliser; or
(b) decreasing the rate of nitrogen applied via synthetic fertiliser to the cotton
area without a corresponding decrease in the lint yield.
(4) Actions which may achieve the outcomes specified in subsection (3) include, but
are not limited to, modifying the synthetic fertiliser:
(i) application rate;
(ii) application timing;
(iii) application method;
Note
For the purposes of (2)(iii), application method refers to how the synthetic
fertiliser is applied. For example, via aerial spraying or placement at depth in the
soil.
(iv) efficiency by the application of an enhanced efficiency fertiliser; or
(v) a combination of the above modifications.
Division 3.4
Emissions intensity reference period
113.5
Determining the emissions intensity reference period
(1) The emissions intensity reference period is the six year period starting from the day
six years before the first day of the crediting period.
(2) The emissions intensity reference period must include a minimum of three years in
which the project area included a cotton area.
(3) In order for a year to count for the purposes of subsection (2), the information
required under Division 5.4 must be available for that year.
(4) If information required under Division 5.4 is available for a year during the
emissions intensity reference period in which the project area included a cotton
area, that information must be inputted into the Irrigated Cotton Calculator. For the
avoidance of doubt, data for the purposes of Division 5.4 is not required for every
year during the emissions intensity reference period in which the project area
included a cotton area.
(5) If the requirements in subsection (2) are not met in the period mentioned in
subsection (1), the emissions intensity reference period can be extended, up to a
maximum of three times, by moving the start date to a year earlier until the
requirements are satisfied.
Note Under this subsection, the emissions intensity reference period may need to be extended to
either 7, 8 or 9 years for the project to have three years of relevant cotton data and thus be
an eligible offsets project.
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Division 3.5
Project area requirements
123.6
Project area
(1) A project area must be the same area of land in all years in both the emissions
intensity reference period and in the crediting period.
(2) For the avoidance of doubt, subsection (1) does not require a project which consists
of project areas to include the same project areas in each year in the emissions
intensity reference period and in the crediting period.
133.7
Stratification
(1) The project proponent must produce a map which stratifies a project area into
paddocks for each year in the:
(a) the emissions intensity reference period; and
(b) the crediting period.
(2) Each paddock identified in a map produced for the purposes of subsection (1) must
be issued a unique identifier. If a paddock’s perimeter is the same between two
maps produced for the purposes of subsection (1), the unique identifier issued to
the paddock in accordance with subsection (2) must be the same in both maps.
(3) For the avoidance of doubt, a map produced for the purposes of subsection (1) does
not need to align with calendar or financial years.
Note For the purposes of administrative simplicity, project proponents are encouraged to align
the 12 month period covered by their annual map with the relevant cotton growing season
rather than a calendar of financial year.
(4) The map produced for the purposes of subsection (1) may only include a paddock
as part of the cotton area if:
(a) cotton is planted in the paddock;
(b) the paddock is irrigated; and
(c) the residue remaining in the paddock after the harvest of cotton is not burnt.
143.8
Mapping format and precision
(1) A map produced for the purposes of subsection 13(1) must be in a digital
Geographic Information System format.
(2) The boundary of a paddock identified in accordance with section 13 must have a
horizontal accuracy either:
(a) of 10 metres at 95 per cent threshold; or
(b) as specified by the Intergovenmental Committee on Surveying and Mapping
Australian Map and Horizontal Accuracy Standard 2009.
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Note
While any Geosgraphic Information System format which meets the requirements
in subsection (2) is acceptable for the purposes of subsection (1), project
proponents are encouraged to use the Carbon Farming Initiative Mapping Tool,
available on the Department’s website. The Standard mentioned in paragraph (b)
is available at: http://www.icsm.gov.au.
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Part 4
Net abatement amount
Division 4.1
The net abatement amount
154.1
The net abatement amount
(1) For paragraph 106(1)(c) of the Act, this Part specifies the method for working out
the carbon dioxide equivalent net abatement amount for a reporting period for an
irrigated cotton project that is an eligible offsets project.
(2) The greenhouse gas emissions avoided as a consequence of the project is the
carbon dioxide equivalence of the difference between the baseline and the project
emissions from the cotton area over the reporting period.
(3) If a calculation in this Part includes a factor or parameter that is defined or
calculated by reference to another instrument or writing, the factor or parameter to
be used for a reporting period is the factor or parameter referred to in, or calculated
by reference to, the instrument or writing as in force at the end of the reporting
period.
Note Subsection (3) includes the the global warming potentials for methane and nitrous oxide
prescribed by the National Greenhouse and Energy Reporting (Measurement)
Determination 2008.
(4) For an eligible offsets project to which this Determination applies, the carbon
dioxide equivalent net abatement amount is the carbon dioxide equivalence of the
amount of greenhouse gas emissions avoided as a consequence of the project in
relation to a project area in a reporting period, calculated:
(a) using the Irrigated Cotton Calculator in accordance with this Part to
determine the carbon dioxide equivalent net amount of greenhouse gas
emissions avoided as a consequence of the project for the cotton area, for
each year in the the reporting period; and
(b) summing the amounts under paragraph (a) for all years and project areas
which are part of the reporting period.
(5) If the net abatement amount of a year is less than zero, for the purposes of
subsection 4(b) it is taken to be zero.
Note Years in which the net abatement amount is less than zero, that is, years in which project
emissions are greater than baseline emissions, must be reported, but are not deducted from
the net abatement amount. This treatment of negative abatement amounts is possible from
a greenhouse gas accounting perspective because of the variance discount applied to the
baseline which reduces positive abatement amounts (see Subdivision 4.2.2).
164.2
Overview of gases accounted for in abatement calculations
(1) The following table provides an overview of the greenhouse gases and emissions
sources that are relevant to working out the carbon dioxide equivalent net
abatement amount for an irrigated cotton project.
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Greenhouse gases and emissions sources
Item Relevant emissions
calculation
Emissions source
Greenhouse gas
1
Baseline emissions
Project emissions
Synthetic fertiliser
application other than
urea
Nitrous oxide (N2O)
3
Baseline emissions
Synthetic fertiliser
application (urea)
Carbon dioxide (CO2)
Green manure residue
Nitrous oxide (N2O)
Project emissions
4
Baseline emissions
Project emissions
(2) For a year, green manure residue is only relevant to working out the carbon dioxide
equivalent net abatement amount for an irrigated cotton project if:
(a) the green manure crop is planted on an area of land that is a part of the
cotton area in the year; and
(b) there are no other crops planted between the green manure crop and the a
cotton planting in the year.
(3) For a year, synthetic fertiliser is only relevant to working out the carbon dioxide
equivalent net abatement amount if the synthetic fertiliser is applied:
(a) after the harvest of the crop previous to the cotton planting; and
Note
The crop previous to the cotton planting could be a cotton crop, or a crop grown in
rotation with cotton.
(b) before the harvest of the cotton area in the year.
Division 4.2
Method for calculating net abatement amount
174.3
Calculation of the carbon dioxide equivalent net abatement amount
(1) The carbon dioxide equivalent net abatement amount for the cotton area must be
calculated using the Irrigated Cotton Calculator by entering the inputs required by
the Irrigated Cotton Calculator.
(2) Inputs required by the Irrigated Cotton Calculator for the purposes of subsection (1)
include inputs outlined in section 18 and:
(a) the identification of a region; and
(b) the application by the Irrigated Cotton Calculator of the results of scientific
research pertaining to the effect of management practices on greenhouse
gas emissions in the cotton industry.
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184.4
Inputs required by the Irrigated Cotton Calculator
(1) The following table provides an overview of the inputs required to work out the
carbon dioxide equivalent net abatement amount for an irrigated cotton project.
Inputs required by the Irrigated Cotton Calculator
Item Relevant period
Input
Unit
1
Emissions intensitry
reference period; and
crediting period
Mass of synthetic fertiliser
applied for each type of
synthetic fertiliser applied
Tonnes
2
Emissions intensitry
reference period; and
crediting period
Nitrogen concentration for
each type of synthetic
fertiliser applied
Per cent
3
Emissions intensitry
reference period; and
crediting period
Cotton area
Hectares
4
Emissions intensitry
reference period; and
crediting period
Green manure area
Hectares
5
Emissions intensitry
reference period; and
crediting period
Lint yield
Tonnes
Subdivision 4.2.2 Baseline emissions
194.5
The baseline
(1) The baseline for the project must be calculated using the Irrigated Cotton
Calculator, for each year in a reporting period, for the cotton area by entering each
input required by the Irrigated Cotton Calculator into the Irrigated Cotton
Calculator.
(2) For the purposes of subsection (1), the baseline will be the emissions estimated to
occur had the new management actions not been implemented in the relevant year
in the reporting period, minus the variance discount, determined in accordance with
section 20.
(3) For a project area, for each year in the reporting period, the Irrigated Cotton
Calculator must determine the baseline on an emissions intensity basis by:
(a) determining emissions, in t CO2-e, from each of the emissions sources
specified in section 16:
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(i) for synthetic fertiliser, using methods consistent with those used in
the National Inventory Report, for each year in the emissions
intensity reference period; and
(ii) for green manure in a year in which it is relevant to working out the
carbon dioxide equivalent net abatement amount, by multiplying the
emissions intensity of green manure residue, in t CO2-e per hectare,
calculated assuming a yield of 2 tonnes of dry matter per hectare, by
the number of hectares of green manure in the year;
(b) summing the emissions, determined in accordance with paragraph (a), for
each year in the emissions intensity reference period;
(c) calculating the emissions instensity, in t CO2-e per tonne of cotton lint
produced for each year in the emissions intensity reference period, by
dividing the sum obtained in accordance with paragraph (b) by the lint yield
for the year;
(d) calculating the mean emissions intensity for the emissions intensity
reference period, in t CO2-e per tonne of cotton lint produced, based on the
annual emissions intensities determined in accordance with paragraph (b);
(e) multiplying the mean emissions intensity determined in accordance with
paragraph (c) by the number of tonnes of cotton lint produced in the
relevant year in the crediting period; and
(f) applying the variance discount, as specified in section 19, to the baseline
emissions for each year calculated in accordance with paragraph (d).
204.6
The variance discount
The variance discount is 6.5 per cent of the emissions estimated to occur had the
new management actions not been implemented in the relevant year in the
reporting period.
Note A variance discount of 6.5% is applied to the baseline to ensure that the net abatement
amount excludes emissions reductions that may have occurred due to natural variation (see
also paragraph 14(5)).
Subdivision 4.2.3 Project emissions
214.7
Project emissions
(1) Project emissions must be calculated using the Irrigated Cotton Calculator, for each
year in a reporting period, for the cotton area by entering each input required by the
Irrigated Cotton Calculator into the Irrigated Cotton Calculator.
(2) For a project area, for each year in the reporting period, the Irrigated Cotton
Calculator must determine emissions, in t CO2-e, by summing:
(a) the emissions from synthetic fertiliser, in t CO2-e, as determined using
methods consistent with those used in the National Inventory Report, for
each year in the emissions intensity reference period; and
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(b) for emissions from green manure in t CO2-e, in each year in which it is
relevant to working out the carbon dioxide equivalent net abatement
amount, by multiplying the emissions intensity of green manure residue, in
t CO2-e per hectare, calculated assuming a yield of 2 tonnes of dry matter
per hectare, by the number of hectares of green manure in the year.
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Part 5
Reporting, record-keeping and
monitoring requirements
Division 5.1
Operation of this Part
225.1
Application
For subsection 106(3) of the Act, the project proponent of an eligible offsets project
to which this determination applies must comply with the monitoring, recordkeeping and reporting requirements in this Part.
Division 5.2
235.2
Offsets report requirements
Information in each offsets report
The following information must be included in each offsets report:
(a) the annual map for each year in the reporting period, stratified in
accordance with section 13;
(b) the new management action undertaken in each year in the reporting period;
and
(c) all inputs and outputs from the Irrigated Cotton Calculator for each year in
the reporting period.
Note Other record-keeping requirements are prescribed in the legislative rules.
Division 5.3
Record-keeping requirements
245.3
Records that must be created and kept
(1) For each year in the crediting period, records of each new management action and
their compliance with section 10 must be kept.
(2) For the emissions intensity reference period, records of the following parameters
monitored in accordance with Division 5.4 must consist of at least one level 1 and
one level 2 record if available:
(a)
(b)
(c)
(d)
(e)
cotton area;
irrigation status;
lint yield;
amount of nitrogen applied via a synthetic fertiliser; and
green manure area.
(3) Except for lint yield, if level 1 records are not available for a monitored parameter
specified in subsection (2), that record must consist of:
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(i) a level 2 record; and
(ii) a level 3 record consistent with the level 2 record mentioned in (i).
(4) For the crediting period, records of a monitored parameter specified in subsection
(2) must consist of:
(a) at least one level 1 record; and
(b) at least one level 2 record.
(5) For the monitored parameter amount of nitrogen applied via synthetic fertiliser,
level 1 records must include an invoice specifying, for each type of synethetic
fertiliser applied:
(a) the product name;
(b) the mass supplied; and
(c) the nitrogen content.
(6) In this section:
(a) level 1 record means a record generated by a person other than the project
proponent which specifically relates to the cotton area or project, whichever
is more relevant;
(b) level 2 record means a record generated by the project proponent which
specifically relates to the project or cotton area, whichever is more relevant;
and
(c) level 3 record means a proxy record.
(i) Proxy records can include, but are not limited to:
(A) local or regional averages with reasonable standing; or
(B) records which relate to parts of the project area which are not
the cotton area.
Note Other record-keeping requirements are prescribed in the legislative rules.
Division 5.4
255.4
Monitoring requirements
General
For the purposes of entering the inputs required by the Irrigated Cotton Calculator,
the parameters in this Division must be determined in accordance with the
requirements in this Division.
Note In addition to the parameters specified in this Division, proponents must monitor
parameters necessary to meet the record-keeping requirements in the legislative rules. See
in particular the eligibility parameters, listed in Part 3.
265.5
Cotton area
For each year in the emissions intensity reference period and the crediting period,
the following parameters must be monitored in relation to each paddock in the
cotton area:
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(a) the area, in hectares;
(b) planting density, in kilograms of seed planted per hectare; and
(c) irrigation status.
Note See sections 12 and 13 for annual mapping requirements.
275.6
Lint yield
(1) For each year in the emissions intensity reference period and in the crediting
period, the lint yield must be determined for each paddock.
(2) For the purposes of subsection (1), the lint yield is taken to be the tonnes of lint
received by the cotton gin from the paddock.
285.7
Synthetic fertiliser
For each year in the emissions intensity reference period and in the crediting
period, the total amount of nitrogen, in kilograms, applied via a synthetic fertiliser
to each paddock in the cotton area must be determined by monitoring, for each type
of synthetic fertsiliser applied:
(a) the mass of the synthetic fertiliser applied, in kilograms; and
(b) the nitrogen content of the synethetic fertiliser, in percent nitrogen of total
mass.
295.8
Green manure
(1) For each year in the emissions intensity reference period and in the crediting period
in which a cotton crop was planted, the area, in hectares, of green manure planted
must be determined.
(2) For each hectare planted with green manure and counted in accordance with
subsection (1), planting density, in kilograms of seed planted per hectare, must be
recorded for each paddock in the cotton area.
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