Tuesday, 15 March 2022 06:55

Got a spare $200k?

Written by  Peter Burke
A sheep and beef farmer says he is staring down a $200,000 bill for greenhouse gas emissions unless he gets carbon credits for the trees planted on his farm. A sheep and beef farmer says he is staring down a $200,000 bill for greenhouse gas emissions unless he gets carbon credits for the trees planted on his farm.

As the reality begins to kick in for farmers about the costs for mitigating agricultural greenhouse gas emissions, one farmer has told Rural News he could face a $200,000 bill in the future, unless he gets carbon credits for the trees planted on his farm.

Former Meat and Wool NZ director Tom Mandeno, who has served in several high profile leadership roles in the primary sector over many years, runs a 670 hectare sheep and beef property, near Port Waikato, on the west coast of the North Island. He says it would be very hard to find an extra $200,000 in his farming operation to pay such a bill.

To that end, Mandeno has put forward a remit to the Beef + Lamb NZ (B+LNZ) annual meeting being held on March 24. The remit calls for B+LNZ to support the inclusion of established trees as vegetation sequestration offsets, to be included in the greenhouse gas emissions calculation required for farm environment plans.

"If a pine tree can sequester carbon, surely a poplar or oak tree or a native tree - such as kauri and rimu and other native trees that people have fenced off on their farms - should also be included," he told Rural News.

"These trees are sequestering carbon and the farmers are not getting any credit, which I think is unfair."

Mandeno says when he became aware of the GHG emissions issue and how it might impact on his farm he sought the professional help of B+LNZ's Hamilton-based extension manager, Maria Shanks. She looked over his property, did the calculations, and found that the farm was emitting 2,497 tonnes of carbon.

However, what staggered Mandeno the most was that despite all the native trees and other plantings - such as poplar poles and willows - on his farm, he is only entitled to a credit of just 17 tonnes.

"On that basis we face a potential bill of $200k for carbon," he says.

Mandeno says this figure is based on the cost of carbon being set at the rate of $100 per tonne.

He says it is presently valued at $85 a tonne, but he expects this to rise in the coming years. He realises that initially the cost of carbon will be discounted but says this won't last forever and, from a budgeting point of view, the $100 tonne figure is realistic.

"That being the case, a lot of farmers will face very challenging times trying to meet that cost. I don't know how we are going to be able to pay for this," he says.

"It seems we are the only country in the world that is charging farmers emissions in this way."

More like this

DairyNZ chair wants cross-party deal

New DairyNZ chair Tracy Brown says bipartisan agreement among political parties on emissions pricing and freshwater regulations would greatly help farmers.

Positive signs, says McClay

First up to the podium at the recent Tractor and Machinery Association (TAMA) Conference in Wellington, Minster for Agriculture, Todd McClay, reflected on a difficult 12 months, but hinted at signs that things were turning the corner, saying “when ag does well, New Zealand does well”.

Replacing farms with forests?

A horror story - that’s how Federated Farmers describes new research looking at forestry conversions’ impact on water quality.

Overreach

OPINION: When Groundswell showed up in the 'advocacy hub' at Fieldays alongside the same groups that brought you He Waka Eke Noa, the Hound feared the ginger group had been brought into the woke fold and given the old rubber ring.

$10 cucumbers?

OPINION: The Hound hears John Murphy, chair of Veg NZ, reckons greenhouse vege producers face severe challenges due to changes in the ETS.

Featured

2024 red meat exports end on a high

New Zealand's red meat exports for 2024 finished on a positive note, with total export value increasing 17% over last December to reach $1.04 billion, according to the Meat Industry Association (MIA).

Celebrating lamb's proud heritage

One of the most important events in the history of the primary sector that happened 143 years ago was celebrated in style at Parliament recently.

$2.4m for fruit fly operation

Biosecurity New Zealand Commissioner, North, Mike Inglis says the $2.4 million cost of a recent biosecurity operation in South Auckland is small compared to the potential economic impact of an incursion.

National

Top Maori farms named

Maori farms from Northland and Northern Hawkes Bay are the finalists in this year’s prestigious Ahuwhenua Trophy competition  for the…

Hewett appointed AgriZeroNZ chair

Rob Hewett has been appointed the new chair of AgriZeroNZ, the public-private partnership designed to accelerate the development of tools…

Machinery & Products

New home for JCB Agriculture

Power Farming has announced a new chapter in its partnership with JCB, which having represented the UK-based company’s construction equipment…

CAT's 100th anniversary

While instantly recognised as the major player in construction equipment, Caterpillar Inc, more commonly known as CAT, has its roots…

» Latest Print Issues Online

The Hound

Ruth reckons

OPINION: Ruth Richardson, architect of the 1991 ‘Mother of all Budgets’ and the economic reforms dubbed ‘Ruthanasia’, added her two…

Veg, no meat?

OPINION: Why do vegans and others opposed to eating meat try to convince others that a plant based diet is…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter