Australian PM moves closer to carbon trade deal

* Farms concession boosts hopes for Australia CO2 laws

* Laws pass lower house, hostile Senate next

* "Time has come to act," says prime minister

By James Grubel

CANBERRA, Nov 16 (Reuters) - Australian Prime Minister Kevin Rudd moved closer to securing his carbon trade laws on Monday after the government agreed to exclude farmers from the scheme, but warned opponents time was running out to strike a deal.

The government hopes the troubled scheme will finally pass the Senate before the end of this month and become only the second national emissions trading platform outside Europe and, possibly, a template for other countries.

The package of 11 bills passed the first stage of parliament in the lower House of Representatives on Monday, where the government has a majority.

But the government needs 7 votes in the hostile Senate and has been negotiating with the opposition on amendments to secure the support it needs.

Much is at stake. The Senate has already voted against the laws, in August, and the government has put its reputation at stake by backing carbon trading as a major way to curb carbon emissions is one of the world's top per-capita CO2 polluters.