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Only grass decomposed in an anaerobic environment would produce methane. Grass decomposed aerobically would produce CO2 instead.

But methane decomposes into CO2 on a relatively short timescale(12 years?) so surely....it's a wash?

Those couple of years where the carbon is in the form of methane instead of CO2 have a big impact because methane is a much stronger greenhouse gas.

Not a wash. Methane has 85x the impact per unit as co2 which has a half life of 27 years.