Emissions exemption ‘fair’

Farmers say it is fair to exempt them from 95 per cent of emissions charges, but they fear the uncertainty of other climate costs.

The most polluting sector of the economy, agriculture, looks set to join the Emissions Trading Scheme, but under a deal that will see it pay just 5 per cent of its total emissions cost from 2025.

That would equate to a charge of 1 cent per kilogram of milk solids and 1c per kg of beef, coming at a cost of about $1500 for most dairy farmers.

Agriculture accounts for nearly half of total greenhouse gas emissions. Federated Farmers Manawatu¯ dairy spokesman Murray Holdaway said the Zero Carbon Bill, presented to the Government this week, set a framework for how farmers would deal with climate change, but didn’t contain details of how the policy would be implemented.

He believed it was fair farming was included in climate change policy, but he said there were differences within the sector regarding the best way forward.

Much of that related to methane targets, to be met before 2030 and 2050. ‘‘From what I have seen, there seems to be an agreement between international experts that methane is not as big a problem as carbon dioxide, because it is a short-lived gas only lasting 10-12 years before breaking down.’’

Carbon dioxide, however, accumulated for thousands of years.

He said $1500 wouldn’t hurt farmers, but it was expected the cap on carbon price would be removed and the 95 per cent free allocation was only a political agreement until the next election.

‘‘Worst case could see average annual payments of $100,000 per farmer, which would mean dairy farming would be not a viable business.’’

Climate change policy should not be to the detriment of food production and security, Holdaway said.

Manawatu¯ conservationist Karen Tutt said farmers were committed to protecting the environment, with many taking part in tree planting programmes and fencing around waterways.

They understood their ethical responsibility.

‘‘In the early days, farmers and greenies didn’t get on. But that’s not the case any more. We’ve got to eat... but farmers also have to make a living.’’