Farmers urged to consider trading scheme

DEREK FLYNN

You don't want to damage your existing business, but trees could be planted on the least productive parts of a farm

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The Emissions Trading Scheme (ETS) will be the biggest revolution in the New Zealand economy since Rogernomics, according to a Nelson-based carbon accountant.

Carbon Farm managing director Murray McClintock said the scheme was going to happen and would touch all areas of the country's economy.

Farmers needed to start thinking about how they could use it to their advantage, he said.

"It's a business opportunity which has environmental benefits."

Speaking at the national Federated Farmers conference last month, Agriculture Minister David Carter said farmers would still have to bite the bullet and face a scheme of some sort. Mr Carter said the scheme, as proposed by the previous Labour government, would be reformed to be more in line with the Australian model.

"I cannot pre-empt the outcome of the select committee's recommendations, but I predict we will end up with an ETS, but a far more balanced one," he said.

Carbon farming would allow farmers to diversify their properties, said Mr McClintock.

"You don't want to damage your existing business," but trees could be planted on the least productive parts of a farm, he said.

"The important thing about carbon credits, unlike any other agricultural product, is that the value is driven by the energy market.

"Energy might be up while food prices are down."

Mr McClintock said farmers who owned their own trees to offset emissions rather than buying credits on the carbon market would be much better off. "To buy credits ... you're at the mercy of the carbon market."

He said there would be far more demand for carbon than would be available for supply when the ETS was up and running in New Zealand, so planting trees was a "win-win situation".

- The Marlborough Express