Trees could replace beef and sheep under ETS

Farmers will be subjected to levies under the Emissions Trading Scheme (ETS) from January 1, 2015.

Participants at a recent Lower Northland monitor farm field day were told that sheep and beef farmers will pay a levy per kilogram of meat processed, equivalent to six cents/kg for sheep and three cents/kg for beef.

Independent forestry consultant John-Paul Praat, of P.A. Handford and Associates, said that now was the time to start planting trees to earn carbon credits, to help offset the levies and minimise farmers’ liabilities for emissions.

“Everyone in the sector thinks the ETS is unfair, and they’re right,” he said. “But we’re all in the same boat and have to get on with it.”

Livestock contributed 97 percent of on-farm carbon emissions, with the only way to mitigate these effects being through improved efficiency in terms of evaluating the breeding worth of stock, how well they converted dry matter, and improved productivity with lower stock numbers.

“It’s business as usual, but farmers need to be more efficient in trying to reduce their carbon footprint.”

Grants are available for planting trees and farmers should seek advice on what species to plant and how forestry can benefit individual farms through improved soil condition, alternative income streams and increased biodiversity. Mr Praat said there was no need for farmers to worry about being carbon neutral, unless it was proven that there was a price premium for carbon neutral produce which could make it worthwhile.

“There are a lot of figures being bandied around such as needing one hectare of pines for every three of animals, but this isn’t correct. On 600ha you’d need to plant up five percent – or 30ha – in order to look after your liabilities for the next 30 years.”

It was possible to trade carbon credits as a commodity on the open market, or transfer them from one block of land to another, as long as the land was registered to the same owner.

Mr Praat said it was more likely to be ‘townies’ buying forestry land and trading credits, than farmers. However, retiring inappropriate farm land to forestry would help improve a farm’s overall profitability.

A local farmer said the scheme was too complicated. There will be a few making a lot of money, but it won’t be the farmers, he said.