Tenterfield’s farming community has welcomed the news that the Federal Government will permanently exclude the agriculture industry from its carbon pollution reduction scheme, heralding the decision as a step away from a move that could cripple the industry.
The Government initially intended to exclude agriculture from the Emissions Trading Scheme (ETS) until 2015 and make a decision on its involvement thereafter in 2013. The Rudd Government this week brought forward the decision by four years and agreed to a central Coalition demand that agriculture be exempt from the scheme.
“It’s good news on the face of it,” said Bronwyn Petrie, Chairman of the NSW Farmers Association’s Tenterfield Branch.
“It’s good to have common sense prevail, and I believe farmers across the nation will welcome the exclusion as a step in the right direction. But more work is needed and the benefits of agriculture in carbon reduction need to be recognised.”
Australia was the only country, apart from New Zealand, to consider including farmers in a carbon pollution reduction scheme and that, Mrs Petrie said, would put Australian and Tenterfield farmers at a huge disadvantage on the global stage.
Peter Jeffrey owns a property at Steinbrook that includes around 550 cows and heifers. He said that the exclusion was an improvement and a good thing for Tenterfield farmers, but said the ETS will still have an impact on the local industry and especially on local wool and beef producers, and that he was still dissatisfied with and sceptical of the ETS. It is an opinion Mr Jeffrey said many of his peers share.
“I’m worried that the so-called cure is worse than the disease,” he said.
“It seems to be more about the flow of money.”
Mr Jeffrey said he would like to see more study into the ways Australia can reduce its carbon emissions, and would like to see all Australians become more aware of their consumer habits at home and avoiding wasteful single-use products.
Independent Member for New England Tony Windsor has described the agriculture industry’s exemption from the ETS as a major breakthrough for the farming sector.
He said the decision to exempt agriculture removed a fear and uncertainty that would have revolved around the industry for years to come.
He believes farmers, whether they are sceptics or supporters of climate change science, should embrace the exclusion.
“The decision means that the negatives of methane and nitrous oxide production from food production will be excluded from an ETS but will still allow the positives of soil sequestration and improved farming technologies to be recognised as part of a carbon solution,” he said.
“I therefore encourage the farming sector to support this decision and encourage those thinking of blocking its passage on the agriculture argument to reconsider their position.
The Nationals Senator for NSW John Williams said he still feared for the future of regional industry because, exemption or not, the ETS would still have an impact on farmers and the agricultural sector through indirect costs.
He said it is not true that the agricultural sector escapes the carbon tax just because its emissions will not be included
“Exempting agriculture is like being thrown from a 10th floor window instead of a 20th floor window - the result is the same,” Senator Williams said.
“The farming sector will still pay more for inputs such as fertilizer, electricity, fuel and transport and because they have always been price takers you can guarantee ETS charges levied on food processors will end up being paid by the farmer.”
Senator Williams said the Nationals would treat the legislation as it did three months ago when it is reintroduced into the senate and remain committed to voting against the emissions trading legislation at the final division.