Farmers Weekly NZ April 15 2019

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13 It’s down to farmers Vol 18 No 14, April 15, 2019

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The hard yards are done

READY: Wairarapa farmers Peter and David McKenzie in one of their paddocks where peas would have been grown are looking forward to a declaration after this season the region is free of the weevil that took one of their crops off the menu in 2016. Find out how they have coped on page 11.

Gas tax is closer Neal Wallace

L

neal.wallace@globalhq.co.nz

IVESTOCK farmers could face an initial greenhouse gas emissions tax of $50 million a year rising to $1 billion, Interim Climate Change Committee David Prentice says. But some of the money might

be used to help rural communities cope with the loss of jobs and services as farm animals are replaced by trees. The $50m is subsidised by the Government allocating units equivalent to 95% of emissions to the primary sector to help it transition and is calculated on a carbon price of $25 a tonne. However, the tax might rise to $1b at an indeterminate time in the future.

The figures are in a discussion document delivered to the Agricultural Climate Change Conference in Palmerston North by Prentice. The committee declined to be interviewed on Prentice’s presentation ahead of the committee presenting its report to the Government on April 30. The document, on the committee’s website, reveals the committee’s thinking on

charges farmers will face as the Government moves the economy to be carbon neutral by 2020. It says an emission tax levied at farm level could be implemented from 2025. In the interim it could be collected by processors from next year. That will give certainty to the primary sector, respond to calls for agriculture to meet its emissions’ obligations and raise awareness with farmers who will

see the deduction on kill sheets and milk receipts. Money raised will be used to introduction the policy but also to help rural communities cope with the likely loss of jobs and services such as schools as farming families leave areas when farmland is planted in trees to offset emissions. The committee is investigating

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