Understand natural capital: for NSW land managers

You will have a range of different natural assets on your property. Below are some examples.

Different types of natural assets

This landscape illustration shows examples of natural assets, including:

1. Fresh water (waterways, creeks, rivers, springs, farm dams)
2. Fallen and standing timber
3. Mountain ranges
4. Grasslands
5. Woodlands
6. Atmosphere/air
7. Soil
8. Subsoil substances
9. Groundwater
10. Minerals
11. Beaches and coastal dunes
12. Ocean
13. Saltmarsh
14. Wetlands
15. Riparian vegetation
16. Endangered species
17. Native vegetation/plants
18. Native wildlife
19. Ecological communities
20. Geological formations (rocky outcrops, karst landforms, caves)
21. Culturally significant area
22. Aquatic wildlife
23. Forests.

Natural assets provide a range of free services from nature, called ‘ecosystem services'

There are 3 main types of ecosystem services:

1. ‘provisioning’ ecosystem services such as forage provided for livestock, crop production and timber production
2. ‘regulating’ ecosystem services such as pollination, pest control, climate regulation, filtering water and carbon sequestration in soil and vegetation
3. ‘supporting’ services such as photosynthesis, soil formation and nutrient cycling, as well as cultural services including educational and spiritual knowledge.

Different types of ecosystem services

This landscape illustration shows examples of ecosystem services, including:

1. Noise and dust minimisation
2. Provision of energy
3. Production of forage and fodder for animals
4. Provision of shelter for animals
5. Water regulation and storage
6. Regulation of waste
7. Local temperature regulation and control
8. Carbon sequestration/climate regulation
9. Biomass production
10. Science and education provision
11. Pollination
12. Conditions for producing food
13. Oil formation
14. Nutrient recycling
15. Water shedding or filtration
16. Habitat provision
17. Provision of recreation activities
18. Regulation of erosion and sediment
19. Provision of medicines
20. Cultural significance
21. Timber production
22. Flood prevention and control.

As a farm or property manager, you are providing environmental services when you take actions that restore, manage or protect natural assets to maximise ecosystem services.

Some of these environmental services are:

• managing livestock in ways that protect or improve the soil and pasture base
• revegetating riparian areas to improve water quality and prevent or reduce local and downstream erosion
• protecting and improving habitat to improve biodiversity and protect native plants and animals
• managing pest animals and weeds
• revegetating land to improve shade and shelter
• planting trees or managing soils to store carbon
• actively managing degraded native forests to improve health, vigour and biodiversity.

Many of these services will have farm business benefits that can help reduce input costs and improve productivity. 

Others provide benefits and value to people in your area and sometimes for all Australians.

Different types of environmental services

This landscape illustration shows examples of environmental services, including:

1. Fencing to exclude stock and pests
2. Controlling pests and weeds
3. Re-establishing native grasses
4. Renewable energy infrastructure
5. Fencing to protect high value assets
6. Establishing vegetation around dams
7. Managing grazing pressure
8. Creating science study zone
9. Carbon sequestration zone
10. Establishing biodiverse shelter belts
11. Managing fertiliser
12. Practicing water use efficiency
13. Regenerating soils
14. Stopping sedimentation in waterways
15. Re-establishing wetlands, mangroves and saltmarsh
16. Constructing in-stream habitat
17. Controlling erosion
18. Revegetating and protecting riparian zones
19. Cultural (cool) burning
20. Protecting critical habitat
21. Managing native vegetation seed banks
22. Protecting culturally significant assets
23. Rehabilitating waterways
24. Maintaining flood management structures.