It will be introduced in just three years and could be signed off by Cabinet in 2023.
The system of farmgate pricing has been worked on since 2019 after calls from the sector for a system that would reward climate-friendly farmers.
The Government says it is committed to a 10 per cent reduction in methane emissions from agriculture and landfills by 2030, going up to a 24 to 47 per cent reduction by 2050, compared to 2017 levels.
It comes alongside a net-zero emissions target for 2050.
But Hannah described the proposal as Wellington "woke thinking" from people on another planet.
"Farmers are sick of this nonsense and the fact Government is closing down their farms.
''One of the freezing works in Northland will have to close.
"Three out of five beef farms in Northland will disappear due to the sheer cost and taxes that will be imposed," he said.
Ian Russell, a Pouto Peninsula beef farmer, said he has always believed in sensible land use and yet, he will be taxed at a similar rate as those in regions who farmed intensively.
"Let's face it. A big chunk of what the Government wants to do is to create tax and no consideration is given to bare fallow land and farm land that have carbon absorbed back into the land."
Russell said the Government was treating beef farmers as any grass-growth cattle farmers who were destroying the environment.
Ohaeawai beef farmer Roger Ludbrook said the changes sought were "unpalatable".
"This is about politics, not science, and once the rest of New Zealand catches up with this and starts questioning whose stupid idea was it, the Government will make changes.
''It has happened before."
Consultation closes on November 18.
Prime Minister Jacinda Ardern noted the disproportionate impact on sheep and beef farmers and said the Government was committed to working through the proposals to find solutions.
She said the Government has included many of the recommendations of the He Waka Eke Noa Partnership of agriculture sector groups for farm-level emissions pricing, and proposed modifications in the consultation document based on advice from the Climate Change Commission.
Climate Change Minister James Shaw stressed the importance of working with farmers to reduce emissions, rather than relying on forestry offsets.
"The Government made a promise to put a price on agriculture emissions, after 30 years of inaction.
"By 2025 New Zealand will introduce a system that means farmers pay a price for their emissions and are rewarded for taking action to reduce their climate pollution.
''Countries grappling with the same challenges as us are once again looking to New Zealand for climate leadership.