New Zealand’s new centre-right government has formally ditched the controversial methane tax on livestock in a move Kiwi farmers are heralding as a sign of common sense.
The former Labor government under Jacinda Ardern made a name for itself with the plan to tax farmers according to the size of their land, the amount of livestock they own, their overall production and their use of nitrogen fertiliser in a bid to make a whole-of-economy mid-century net zero goal.
Nationwide protests from farmers followed and The National Party went to last year’s election with a promise to remove agriculture emissions from the Emissions Trading Scheme.
This week, the government, which has been in power since November, confirmed the methane tax was gone and it would instead establish a new Pastoral Sector Group to constructively tackle biogenic methane.
Agriculture Minister Todd McClay said NZ farmers were some of the world’s most carbon-efficient food producers.
“The government is committed to meeting our climate change obligations without shutting down Kiwi farms. It doesn’t make sense to send jobs and production overseas, while less carbon-efficient countries produce the food the world needs,” he said.
Kiwi producers had been arguing that since Ardern first trotted out the ‘world-first’ tax, which she planned to start next year.
Sheep, beef and dairy farmer Dean Rabbidge, Rabbidge Farms at Wyndham on the South Island, said the methane tax would have added up to a payment of $12,000 to $13,000 a year for his operation.
He described this week’s news as very good but was also a bit cautious.
“For now the methane tax is gone but no doubt this will just turn into a political football and when we see a change to a left-leaning government it will be back on the table,” he said.
“It is a real relief for the sheep and beef sector now though, as we are already under the financial pump without the addition of a tokenistic tax.
“It seems to me the only people who would benefit from a tax on ruminant animals are the tech developers and consultants.”
Beef + Lamb NZ said it had consistently argued agriculture in the ETS would be disastrous.
Chair Kate Acland said sheep and beef farmers had reduced their absolute emissions by more than 30 per cent since 1990 and were offsetting a significant proportion of their remaining emissions through the trees and native vegetation on their farms.
Much of this sequestration was still not recognised or rewarded, she said.
“Recent analysis by AgResearch indicates that our sheep production is already warming neutral,” she said.
“While we are prepared to be part of a new group that discusses how to manage NZ’s agricultural emissions, any involvement will be with full transparency and discussion with our farmers.
“We are being very clear to the Government that our bottom line is that we do not support a price on agricultural emissions as a way of achieving reductions.
“Emissions reductions in the sheep and beef sector are already happening more quickly than needed.
Chair Kate Acland said sheep and beef farmers had reduced their absolute emissions by more than 30 per cent since 1990 and were offsetting a significant proportion of their remaining emissions through the trees and native vegetation on their farms.
Much of this sequestration was still not recognised or rewarded, she said.
“Recent analysis by AgResearch indicates that our sheep production is already warming neutral,” she said.
“While we are prepared to be part of a new group that discusses how to manage NZ’s agricultural emissions, any involvement will be with full transparency and discussion with our farmers.
“We are being very clear to the Government that our bottom line is that we do not support a price on agricultural emissions as a way of achieving reductions.
“Emissions reductions in the sheep and beef sector are already happening more quickly than needed.
Source: FarmOnline.com / Shan Goodwin