A CSIRO report has found reducing greenhouse gas emissions by 2030 in the $13 billion Australian grains sector is likely to see a decrease in grain production.
The report released on Tuesday was produced by the national science agency for the Grains Research and Development Corporation (GRDC) and looked at how the grains sector could help meet Australia's climate targets.
The Australian Grains Baseline and Mitigation Assessment also found emissions could be reduced by approximately 15 per cent by 2030 through a change in farming practices including regional crop rotations and a change in fertiliser use.
The report was co-authored by CSIRO Senior Research Scientist, Dr Maartje Sevenster who said it was important for the grains industry to understand the options.
"The Australian grains sector can contribute to managing global climate change by increasing yields and reducing greenhouse gas intensity, but reducing on farm emissions is very hard to achieve," she told AAP.
"You can increase production without increasing emissions significantly...if it was about total emissions reduction you would very likely lose production from the system."
"I don't necessarily think that all sectors should contribute equally because it is more difficult for some sectors than others," she said.
Dr Sevenster said the 18-month research initiative provided essential baseline data around the current level of greenhouse emissions for the Australian grains industry.
Australian agriculture has recently defined ambitious objectives which aim to reduce Australia's emissions reductions while keeping the sector competitive on the global market.
GRDC Chair and Queensland grain grower, John Woods said the report established an important baseline for the sector.
"The risks of climate change and climate variability including low rainfall and increased temperatures to the Australian grains sector are significant," Mr Woods said.
"Yet climate challenge creates new opportunities for innovation and growth for the agricultural sector, and with the right approach, Australia's grain sector can prosper in a changing environment."
Grain growers manage about four per cent of the Australian continent with 22,300 grain farms covering an estimated 31 million hectares,.
"As growers we continue to apply farming practices that result in world-leading low emissions intensity grain production, while maintaining and improving profitability."
Mr Woods said there were multiple drivers for the agricultural sector to investigate low emissions intensity opportunities.
The report also concluded the local grains industry produces lower greenhouse gas emissions compared to other grain producing countries, including the USA, placing Australia among the most efficient producers in the world.
Dr Sevenster said it would be a trade off if Australia had to reduce its grain production.
"If we stop producing it is likely that someone else has to crank up their production, which is likely to be associated with more greenhouse gas emissions," she told AAP.
"With growing food demand from a climate perspective it's undesirable for Australia to reduce its grains production."