NZ farmers have a cow of a time on emissions

Age
Monday 28/4/2008 Page: 2

THE Kyoto Protocol will hit the pockets of New Zealand food producers for little environmental benefit, according to a NZ farm leader. The president of the Federated Farmers of New Zealand, Charlie Pedersen, said greenhouse costs were already accruing for NZ farmers, despite farming not being directly affected by an Emissions Trading Scheme (ETS) until 2013. Mr Pedersen said under the ETS now before the NZ parliament, different sectors of the economy would be phased in over five years. On the face of it, we as food producers get a break, but in actual fact, in nine months' time liquid fuel, which covers transport, will be included," he said.

This will have an immediate impact on us." He was addressing a conference on greenhouse, agriculture and emissions trading, organised by the Australian Farm Institute on the Gold Coast. Mr Pedersen said energy would be included the following year, which would have a big impact on fanning. The baseline year is 2005, effectively backdating the scheme. We will need to account for any development since then, come 2013. This just adds to the cost on us as the costs are already accruing," he said.

"Every time I drive my tractor out of the shed or turn on the machine at the dairy shed, I'm also trading in emissions. And, of course, whenever I see my cows performing a natural act of nature the same applies." Agriculture accounts for 48.5% of NZ greenhouse gas emissions, with energy and transport making up most of the rest. methane from ruminant animals, at 30%, is the biggest single source of emissions.

Mr Pedersen said one of the big unknowns about the bill was where the ETS would be transacted. "Will it be at on farm' or when the produce from the farm arrives at the processing facility?" he said. The Government was grappling with two essential prerogatives. First was the administrative efficiency of dealing with 40-odd companies as opposed to 30,000 farmers. Second was the way price signals could affect behavioural change at the farm level. Mr Pedersen said the Government's decision would have a huge impact on the workability of the ETS for farmers.

For farmers to be left facing a cost, with no means of reducing their exposure except to reduce production, simply isn't smart for a country that relies so heavily on food production to drive the economy," he said. Our preference is that the point of obligation should be at the farm level." Mr Pedersen said there was a real risk that farming for carbon credits would overtake farming to feed the world. The NZ legislation should be framed to allow for the flexible use of land. "Land use efficiency must be maximised to take into account land capability," he said.

The system NZ farmers faced, if adopted around the world, could not only force up the price of food dramatically, but also create food shortages. Our view is that the process in NZ is rushed and not properly thought through," he said. Mr Pedersen said $17.2 billion, or 47% of NZ export returns, came from agriculture, and about 40% of New Zealanders were employed in the food industry.