Wednesday, 23 March 2022 09:55

Farm costs will rise under ETS - DairyNZ

Written by  Staff Reporters
Jim van der Poel Jim van der Poel

DairyNZ chairman Jim van der Poel says over 2,000 farmers have taken part in the He Waka Eke Noa chairman consultations via face-to-face meetings and online.

Van der Poel, who attended meetings in the North Island, says there is very little support for an ETS.

He says the meetings discussed the pros and cons of the other two options: farm-level levy and processor-level hybrid levy.

"Once people get to know what we are seeking they start to engage," he says.

Van der Poel says farmers realise that under an ETS, costs will escalate.

"It will become another tax; not too many people think an ETS is the best option."

The meetings normally started with farmers questioning the need for an emissions pricing scheme.

"There's a lot of noise out there. At the start of meetings, farmers want to know why they are going into this at all when they are most efficient in the world," he says.

The issue of costs has been a key area of discussion.

Van der Poel says they could only give farmers "best-guess estimates" on costs at this stage.

He says polls carried out at the events show farmers are open to the options, with the majority favouring one or other of the alternative options over the NZ ETS. The Government previouly legislated to put agriculture into the NZ ETS but has agreed to listen if the primary sector comes up with a better option.

"As a sector, we have to accept our emissions reduce and adapt. Otherwise, farming is in ETS and the cost of it will be out of our control," he says.

The Primary Sector Climate Action Partnership He Waka Eke Noa, which includes DairyNZ and Beef+Lamb NZ, will report its recommendations to Ministers by May 31.

"These options would deliver more positive outcomes for farmers and New Zealand than the NZ ETS," says van der Poel.

The options (a farm-level levy and processor-level hybrid levy) are more practical and reward positive change, while still achieving environmental outcomes. Some of the money raised will be invested back into R&D and on-farm work to reduce emissions.

Following initial farmer feedback on the options in December, the partners are also putting forward a two-phased approach, starting with the processor-level hybrid levy option and transitioning to a farm level system in future.

"Doing nothing is not an option. If we don't move on this, the Government will put agriculture in the NZ ETS. They have already put this into legislation but have agreed to listen if we come up with a credible alternative," says van der Poel.

More like this

ETS logic - stranger than fiction

OPINION: Over the last two weeks we have seen a Bill pass through the house that removes the ETS backstop from agriculture emissions, and once again we heard some strange logic being presented.

Carbon tax

OPINION: A group of University of Auckland academics claim a carbon tax is the most effective way for New Zealand to cut emissions while supporting a stable economy.

OSPRI's costly software upgrade

Animal disease management agency OSPRI has announced sweeping governance changes as it seeks to recover from the expensive failure of a major software project.

Musical chairs

OPINION: DairyNZ's director elections has seen scientist Jacqueline Rowarth re-elected for another three-year term.

Featured

Pāmu farm opens gate to urban visitors

For many urban New Zealanders, stepping into Pāmu’s Pinta dairy farm near Taupo last month was the first time they had had the chance to experience farm life up close.

National

Machinery & Products

Gong for NH dealers

New Holland dealers from around Australia and New Zealand came together last month for the Dealer of the Year Awards,…

A true Kiwi ingenuity

The King Cobra raingun continues to have a huge following in the New Zealand market and is also exported to…

Data crucial to managing water

Watermetrics was formed as a water data collector and currently supplies and services modern technology such as flow meters, soil…

» Latest Print Issues Online

Milking It

Dairy power

OPINION: The good times felt across the dairy sector weren't lost at last week's Beef + Lamb NZ annual meeting.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter