According to the structures of grassland agro-ecosystems, their carbon balance represent the sum of the carbon balances of the four production levels, or the sum from its three interfaces. The carbon balance per production level or interface is the sum of the carbon that is taken up and lost through the different processes in that level or interface. The carbon balance analysis method based on four production levels can quantify which of the processes in the production are either a carbon sink or source. For example, carbon and nitrogen accumulation such as Carbon and Nitrogen sink, soil and water conservation are carbon sink process in Pre-plant production level. The grassland tourism hunting and so on, are the process of carbon source in Pre-plant production level. Photosynthesis and carbon and nitrogen assimilation of biological nitrogen fixation are the process of carbon sink in Plant production level. Greenhouse gases emission is the process of carbon source in Plant production level. The process of carbon sink and source in Animal production level are mostly Carbon fixation in animal product and greenhouse gases emission of ruminant. Carbon fixation in forage and animal products are the process of carbon sink in Post-biological production level. Processing and transport activities are the process of carbon source in Post-biological production level. This can subsequently facilitate improvements in the management of carbon sequestration in grassland production. Furthermore, the carbon balance analysis method based on three interfaces can determine the production mechanisms of carbon sinks and sources, as well as their spatial and quantitative relationships. This can contribute to regulating and controlling the carbon emissions from grassland agro-ecosystems. However, both methods cannot accurately quantify a grassland system's paths of carbon uptake and output, or its utilization efficiency. The carbon balance analysis by the balance between carbon input and output can quantify the pathway of carbon movement. This method is simple and more succinct; however, it is not applicable to farmland scale management of carbon sequestration. Considering a ranch in the Qilian Mountains, China, and a dairy farm in Tasmania, Australia, as examples, three methods were used for analyzing their carbon balances. The results showed that carbon emissions from tourism, product processing, and marketing accounted for the major portions of the total emissions from the grazing management system. Their main carbon sinks were carbon stored in the forage and the soil. Overall, optimal grassland management would benefit from adding carbon sinks and reducing carbon emissions.