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FARMERS WEEKLY – farmersweekly.co.nz – February 28, 2022
Arable faces emissions challenges Annette Scott annette.scott@globalhq.co.nz THE diversity of arable farming systems is complicating the understanding of greenhouse gas (GHG) emissions pricing options. The Foundation for Arable Research (FAR) last year developed E-Check, a simple arable specific GHG calculator to enable arable growers to work out farm emissions. FAR also provided guidance on a range of mitigation strategies. But given the huge variation in the sector, nothing is straightforward, FAR environment senior researcher Dirk Wallace said. “The big challenge is the multiple processes of arable farm systems that make it impossible to provide generic estimates of the likely cost of the greenhouse gas emissions pricing options for any one business,” Wallace said.
The big challenge is the multiple processes of arable farm systems. Dirk Wallace FAR A big component of that comes with finishing stock. A number of options have been batted around and what is clear is that the majority of farmers want what is easiest to implement and, on the ground, what gives them the best deal. “At the moment they are not the same thing and with the huge variation in the sector from being crops focused to such a range of livestock integration, there is not one size that fits more than one,” he said. Wallace urged farmers to know their own farm’s emission number. “I really encourage farmers to get involved in the consultation,” he said. “The best thing to do is work out your own on farm number,
DAMAGE: FAR chief executive Alison Stewart says the arable sector will not become collateral damage in the Government’s push to reduce emissions from New Zealand’s livestock sectors.
look at the two options and figure out how they will affect you and your farm and then fill out the survey to tell He Waka Eka Noa (HWEN) what you think.” In the meantime, FAR has conducted some arable-specific modelling work revealing that financial implications for individual farms will vary hugely depending on the degree of livestock in the farm system. It is also clear that arable farms will not have the same sequestration offsetting opportunities as beef and sheep farmers and will not be able to enter into collectives to gain emission reduction rewards in the same way as dairy farmers. The best way forward for arable growers will be to optimise nitrogen fertiliser use efficiency and implement good management practices around residue management. This will keep nitrous oxide emissions and associated cost as low as possible. The decision to include livestock, or not, will balance out the increased emissions cost
with the revenue gained from the livestock and the associated soil benefits of having a restorative pastoral phase in the farm system. Modelling shows that GHG emissions from arable systems typically range from under 1000 kilograms of carbon dioxide emissions a hectare to 5500kg CO2e/ha. More animals mean more emissions, with modelling suggesting that most of the emissions from a higheremitting mixed arable system, 4000kg CO2e/ha or more, will be associated with livestock. HWEN modelling of the cost of emissions under the ETS backstop option for a 250ha irrigated mixed arable farm in Mid Canterbury, incorporating 2850 stock units (215kgN/ha), in 2025 would be $7502 cost to the farm and in 2030, $24,358, with an emission reduction of 2.4% in 2025 and 7.8% in 2030. Modelling for the same farm under the farm-level split-gas option landed at $4301 ($17/ha) in 2025 and $13,994 ($56/ha) in
2030, with emission reductions at 1% and 3.9% respectively. Under the processor hybrid option, the farm cost would be $7502 ($30/ha) in 2025 and $24,358 ($97/ha) in 2030, with emission reductions at 2.1% and 7.2%. The difference in cost between the two options comes with the farm-level levy calculating livestock emissions for the period the animals are on-farm, whereas the processor-level levy calculates livestock emissions in kilograms of meat produced, meaning the arable farmer finishing or grazing stock will pay for emissions for the animal from its birth to death. A key feature of the farmlevel option is farms calculate their short and long-lived gas emissions through a single calculator, with actual on-farm emissions determining payment rather than using national averages. On-farm efficiencies and mitigations would then be recognised as they become available. A split-gas approach to pricing
would be applied, meaning different levy rates apply to short and long-lived gases and on-farm sequestration could offset some of the cost of the emissions levy. Under the processor hybrid system, processors pay for emissions based on the emissions charge applied to products supplied or bought by farmers, but the processor would likely pass on the cost to farms. FAR chief executive Alison Stewart says no matter what the outcome of the pricing scheme discussion, FAR will continue to work hard to make sure the arable sector’s viewpoints are heard. “We will not become collateral damage in the Government’s push to reduce emissions from New Zealand’s livestock sectors,” Stewart said.
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For more on HWEN pricing and options go to: https://www.far.org.nz/ environment/emissions_pricing E-Check can be found in the environment and compliance section of the FAR website www.far.org.nz
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