Growing the PEI Agricultural and Agri-Food Industry

PEI Farms at a Glance

Government Emissions Targets

PEI aims to cut agricultural emissions 35-40% below 2015 levels by 2040.
This requires reducing emissions from crops, livestock, and fuel use while improving soil carbon storage. Policies and funding programs are in place to help farmers adopt sustainable practices and track progress.

Support Co-operatives

Farmers can earn revenue through carbon markets by adopting GHG reduction practices. Programs like Verra’s Verified Carbon Standard allow producers to sell carbon credits, while government incentives support ecological goods and services (EG&S). As demand for low-carbon food grows, these opportunities will expand.

Improve Soil Health

Major companies—including Cavendish Farms, McCain, and PepsiCo—are setting Scope 3 emissions targets, pushing for lower on-farm emissions. Producers who adopt climate-smart practices will stay competitive and maintain access to key markets.

Enlarge and Upskill Workforce

Expanding cover cropping, agroforestry, and longer crop rotations can store more carbon in soil and vegetation. Policies supporting regenerative farming will strengthen carbon sequestration while improving long-term land sustainability.

Apply and Demonstrate Industry-Led Research

Programs like the On-Farm Climate Action Fund (OFCAF) help farmers implement nutrient management, reduced tillage, and manure improvements. These BMPs lower emissions while maintaining productivity and profitability.

Optimized Nutrient Management

Reducing nitrogen fertilizer use and adopting precision application methods lower nitrous oxide (N₂O) emissions, a potent greenhouse gas. Using cover crops, organic amendments, and slow-release fertilizers helps improve efficiency while maintaining soil fertility.

Cover Cropping and Reduced Tillage

Cover crops absorb excess nutrients, prevent erosion, and increase soil carbon storage, while reduced tillage slows decomposition and minimizes carbon dioxide (CO₂) emissions. Together, these practices enhance soil health and long-term productivity.

Improved Crop Rotations

Extending and diversifying crop rotations—including more perennials—helps store carbon in soil, reduce reliance on synthetic inputs, and lower overall emissions. Longer rotations also improve soil structure and resilience to extreme weather.

Climate-Smart Livestock Management

Adjusting animal diets, improving manure handling, and optimizing grazing practices significantly reduce methane (CH₄) emissions from livestock. Strategies like feed additives and anaerobic manure storage also enhance efficiency and sustainability.

Agroforestry and Land Restoration

Incorporating trees, hedgerows, and perennial vegetation on farms increases carbon sequestration while improving biodiversity and water retention. Restoring grasslands and forests on marginal land further offsets emissions.

Greenhouse Gas (GHG) Emissions and Modeling

• Figure 5: Modelled average annual GHG emissions per hectare for primary cropping systems
• Figure 6: Modelled average CO₂ + N₂O emissions (tonnes CO₂e ha⁻¹ yr⁻¹)
• Figure 7: Carbon input from roots and modelled change in soil carbon for different crop systems
• Figure 8: PEI Crop Inventory Modelled Total Emissions
• Figure 9: Modelled Livestock GHG Emissions per year
• Figure 10: Modelled Livestock GHG Emissions per head per year
• Figure 11: Modelled GHG Emissions Per Unit of Manure Based on PEI Inventory
• Figure 12: Total GHG Emissions Based on PEI Livestock and Crop Inventory
• Table 1: Summary of PEI Agriculture Estimated Baseline and GHG Emission Reduction Targets
• Table 2: Use Cases for GHG and Carbon Accounting
• Table 5: Land Use on Prince Edward Island

Mitigation Practices and Impact

• Figure 13: Modelled Annual GHG reductions with reduced tillage, cover cropping, and 20% reduced nitrogen rates
• Figure 14: Modelled N₂O Emissions Reductions at Various N Rates
• Figure 15: Modelled Soil Organic Carbon Change Over Time Using Cover Crops and Reduced Tillage
• Table 6: Modelled Crop System BMP GHG Reductions
• Table 7: Modelled Changes to Livestock & Manure Management

Future Projections and Pathways to 2040

• Figure 16: PEI Livestock Emissions Reduction Potential
• Figure 17: Modelled Livestock Emissions Reductions Per Head
• Figure 18: PEI Manure Emissions Reduction Potential
• Figure 19: Timeline to Realize GHG Reductions from BMPs (Annual Tonnes CO₂e)
• Figure 20: Annual GHG Emissions Relative to Net Zero Targets Based on BMP Implementation Timeline and Adoption Scenarios
• Table 9: BMP CO₂e Estimations and Project Sizing for EG&S and Carbon Markets

Land Use and Carbon Markets

• Figure 1: Land Use and Livestock Estimates Based on Annual Crop Inventory and Census Data 2015–2021
• Figure 2: Cropping Systems in ACI Data
• Figure 3: Potato Intensity Statistics
• Figure 4: Potato & Forage Intensity Statistics
• Figure 21: Provincial LULUCF Estimates 2000–2020
• Figure 22: Opportunity Cost of Land Conversion Emissions on Perennial Carbon Sink Potential
• Table 3: Comparison of Voluntary and Compliance Markets
• Table 4: Examples of Leakage to Consider for Island-Wide Carbon Strategy
• Table 8: BMP CO₂e Estimations and Project Sizing for Carbon Marketing