"We would encourage everyone to have a look at it," he told AAP of the land management initiative which will help sustain Great Barrier Reef water quality improvements and at the same time earn him alterative income.

"We can't see any downside."

Mr Anderson says he has always embraced best practice farming but tended to underestimate the impact of a process known as nitrogen fixing by planting fallow crops such as legumes.

He now does soil testing so he can understand exactly how much nitrogen is in the soil and how much fertiliser he actually needs to use.

The result is a limit on the amount of nutrient pollution generated by his business, Sweet Cane, that finds its way into waterways and eventually, the Barrier Reef.

By doing so, Mr Anderson accrues reef credits which can be purchased by government or private corporations in much the same way carbon credits are.

"I suppose what this has done for us is create an opportunity for us to say this is an alternative income stream," he said.

What he now wants to focus on is advancing his efforts to reduce sediment run-off by rehabilitating gullies and building buffer lagoons on his land.

It's something he's encouraging other canegrowers who are looking to sustain their businesses and the environment at the same time, to do as well.

"Fingers crossed it will really take off because I think there's benefit for everybody," he said.

"It could be a meaningful and significant amount."

Smaller growers might be able to make tens of thousands of dollars from the program, while larger operations could generate more than $100,000 each year.

Each credit represents one kilogram of nitrogen prevented from entering the reef.

HSBC Australia and the Queensland government became the first-ever credit buyers in October last year.

Five Queensland farmers have since sold 18,000 credits to the state government's Wet Tropics project which tracks nutrient pollution, and sediment deposit in the Burdekin and Fitzroy river catchments.

Research has put the cost of meeting Barrier Reef water quality targets at up to $8 billion.

According to project developer GreenCollar's Carole Sweatman, water quality is the second greatest risk to the reef's health.

"Recognising and valuing the important role of farmers and graziers is not only key to reaching longer term water quality targets," she said.

"It also provides long term income that helps pay for on-farm improvements without compromising the productivity of their land."

Australian Associated Press