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How Emissions Trading will Effect Orange Region

04 November 2008

AUSTRALIA - With the Federal Government’s emissions trading scheme dominating the news recently, cattle, sheep and goat producers in the Orange region are being given the timely opportunity to hear how the scheme will impact them.

Mick Keogh, the Executive Director of the Australian Farm Institute is a keynote speaker at the Orange Meat Profit Day on Wednesday 12 November and will provide attendees with an explanation of the government’s emissions trading scheme (ETS) and the costs that will likely flow on to livestock producers.

The Australian Farm Institute conducts research into strategic issues facing Australian agriculture, and promotes the outcomes to policy-makers and the wider community.


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"There is a critical need for more comprehensive greenhouse accounting rules for agricultural emissions."
There is a critical need for more comprehensive greenhouse accounting rules for agricultural emissions.

According to the Meat and Livestock Association, Mr Keogh said the Australian Farm Institute had recently conducted an analysis on the farm level impacts of the scheme and found that even if agriculture is not initially included there will be costs brought to bear on primary producers.

“Under scenarios where farmers are not required to pay for the greenhouse emissions estimated for their farms, the ETS will have a significant impact on farm profitability due to the increased cost of farm inputs such as fuel and electricity, and farmers’ inability to pass on these extra costs,” Mr Keogh said.

“Reductions in farm profitability of between 5 percent and 10 percent compared to a business as usual scenario are projected, even with quite modest emission prices.

“Under scenarios where farmers are required to pay the full cost of estimated farm emissions as a covered sector, the modelling projects farm profit reductions of more than 100 percent, especially for farms running sheep and cattle.

“There is a critical need for more comprehensive greenhouse accounting rules for agricultural emissions. Current emission accounting rules estimate emissions from agriculture, but do not recognise greenhouse gas removals that are also part of the annual farm production cycle. There is no sense making farmers pay for emissions that are an artifact of greenhouse accounting rules, rather than a true reflection of the annual cycling of carbon through farm production systems.”

Organised by Meat & Livestock Australia, in conjunction with a committee of local producers, the Orange Meat Profit Day is designed to help producers build their profits and prepare for future challenges.

The Meat Profit Day will be held at the Australian National Field Days site outside of Orange, and will be followed by the MLA AGM at the Orange Civic Theatre the following day. A casual on-site dinner will follow the Meat Profit Day. Child care facilities will also be available on the day.

TheCattleSite News Desk



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