The three year study currently being conducted by the Department of Primary Industries (DPI) is examining more than nine sites throughout Western NSW including near Cobar, Bourke and Brewarrina.

DPI research scientist, Dr Cathy Waters, said there has been little empirical data on the carbon capture potential in Australian rangelands until now and the results will identify management practices that maximise natural resource and carbon sequestration potential.

"The preliminary results have revealed greater levels of carbon can be stored in the soil when associated with higher perennial ground cover," Dr Waters said.

"Total grazing pressure can be managed through exclusion fencing by keeping out feral goats and kangaroos, in conjunction with grazing management, which allows producers to adjust stocking rates to increase ground cover through strategic rest periods that allow pastures to recover.

Dr Waters said preliminary results indicated soil organic carbon levels may be as high as 10 per cent more at the soil surface when perennial ground cover is high.

"We are also examining if these differences are consistent across different grazing enterprises for example cattle, merinos, dorpers and goats," she said.

The project received $368,000 in Commonwealth funding under the National Soil Carbon Program and $50,000 from the Western Catchment Management Authority.