Friday, 05 October 2018 12:52

Coming to grips with an ETS

Written by 

Following the conclusion of the Zero Carbon Bill consultation process, it has become clear that the local agriculture sector is likely to be included in the Emissions Trading Scheme (ETS).

So says Crowe Horwath’s agribusiness specialist, Sean Bennett.

While there is still debate on which of the three proposed Zero-Carbon Bill options will be applied, there are obvious benefits to be gained for farm businesses in establishing appropriate tree plantings, or retiring certain land areas to offset possible future emission liabilities, he says.

"Obligations of the ETS will also bring opportunities for farmers and it is vital the new policy is understood by those set to be impacted, including farmers,” he says.

“Farmers should ensure they are positioned to capitalise on opportunities, document their carbon footprint, and compare it to data on plant and lab-based alternate proteins. 

“When we can accurately measure what we have on-farm, and wrap the right story around carbon neutrality, we can then effectively take that to market.” 

Shane Jones, New Zealand’s Forestry Minister stated the government wants to “fix the ETS to make it more streamlined, accessible and flexible and give users more confidence and certainty,” Jones admits there has not been clear, consistent information around the ETS, further commenting “one of the proposed improvements is a consistent, transparent way of making a decision about the supply of ETS units.”

Current policy supports shelter and erosion planting as a method to create carbon credits.

 “If farmers can build on programs already in place by becoming more strategic with plantings, there is potential for farm businesses to create another income stream,” says Bennett.

 Assessing your exact carbon neutrality score requires input from carbon specialists, however, there are methods to develop a rule of thumb understanding of how individual farm businesses rank in carbon neutrality – 12ha of pines, willow or poplar trees/1000 sheep, or 5.7ha/100 beef cattle and 8.7ha/100 dairy cows are carbon neutral.

 “Most sheep and beef farm businesses we have assessed have proved to be carbon positive or well on the way to being so,” says Bennett.

“Sheep and beef farmers have an easier road to being carbon neutral, with latest figures showing that 24% of natural vegetation is on sheep and beef farms. There will be a point where we need to work alongside the dairy industry, as all agri sectors will be grouped together from a legislative perspective.”

With significant gains to be made from the ETS, Bennett urges farmers to take the time to educate themselves on their carbon position and consider how they can use it to their advantage. “If used correctly, it is an instrument that can add real value to your farming business.”

More like this

Marlborough drought declaration welcomed

Marlborough Federated Farmers has got some real concern about the mental wellbeing of farmers and their families in the region because of the drought and there’s a lot of pressure starting to build.

Climate change a constant!

OPINION: Leo Cooney's opinion article (December 5) “Carbon Credits a Discredit” rekindled for me questions about climate change, the ETS, and indeed the whole matter of climate change formerly known as global warming.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Knowing bugs means fewer drugs

A mastitis management company claims to deliver the fastest and most accurate mastitis testing available at scale for New Zealand…

Machinery & Products

AGTEK and ARGO part ways

After 12 years of representing the Landini and McCormick brands in New Zealand, Bay of Plenty-based AGTEK and the brands’…

100 years of Farmall Tractors

Returning after an enforced break, the Wheat and Wheels Rally will take place on the Lauriston -Barhill Road, North-East of…

JD unveils its latest beast

John Deere has unveiled its most powerful tractor ever, with the launch of the all new 9RX Series Tractor line-up…

Biggest Quadtrac coming to NZ!

In the biggest announcement that Case IH Australia/New Zealand has made around its tractor range, its biggest tractor is about…

» Latest Print Issues Online

The Hound

Why?

OPINION: A mate of yours truly wants to know why the beef schedule differential is now more than 45-50 cents…

Fat to cut

OPINION: Your canine crusader understands that MPI were recently in front of the Parliamentary Primary Sector Select Committee for an…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter