DairyNZ chair wants cross-party deal
New DairyNZ chair Tracy Brown says bipartisan agreement among political parties on emissions pricing and freshwater regulations would greatly help farmers.
News of the troubles surfaced last week with the Politik website reporting that the Government faced a breakdown in negotiations with farming groups on the HWEN deal.
"The consequence is likely to be that the Government will now have to impose a new fertiliser levy on all farmers. In effect, this would be a tax," the website claimed.
Last October, the Government insisted HWEN would be in place by the end of this year, ready to come into effect in 2025.
However, it is now believed there isn't enough time to implement the legislation before Parliament rises for this year's general election.
Speculation about HWEN's demise was further fuelled by public comments from Beef + Lamb NZ chair Kate Acland claiming that He Waka Eke Noa would not be legislated before the election.
The apparent failure on an agreement on farm emissions could see the implementation of a fertiliser tax. Rural News understands that unless a last-minute deal can be stitched together, there is a possibility that government will act unilaterally and legislate for a fertiliser tax.
However, in Parliament last week, Agriculture Minister Damien O'Connor appeared to pour cold water on this idea. While he confirmed he'd been working on the possibility of a new tax on nitrogenous fertiliser, O'Connor said ag sector groups had told them they didn't want it and that he'd "probably not" progress the idea to Cabinet colleagues.
Acland told Rural News that Beef + Lamb New Zealand was committed to playing its part in addressing agricultural emissions.
"However, we still believe the current methane targets are too high and do not reflect the latest science when it comes to methane's warming impact on the planet."
Acland says there has been no concrete proposal in relation to emissions pricing from the Government, aside from indications of a potential tax of around $150/tonne on urea.
"Preliminary analysis of this suggests that this would have a significant impact on domestic food prices and farm profitability, particularly on our mixed arable systems, and raise an unjustifiably large amount of money, which we could not support," she added.
"We are still committed to a partnership approach in addressing agricultural emissions."
Meanwhile, staunch opponents of HWEN, Groundswell, have cautiously welcomed the news of HWEN's demise.
"It is too early to celebrate, but we think we are allowed a little hope," Groundswell co-founder Bryce McKenzie said in an email to members last week.
Ironically, last week Stats NZ reported that agricultural emissions in 2022 had fallen by 1.6% - with the reduction attributed to the sheep, cattle and grain sectors.
