Rangitīkei Mayor Andy Watson said the pricing scheme will unfairly impact sheep and beef farmers. Photo / Bevan Conley
Rangitīkei Mayor Andy Watson said the pricing scheme will unfairly impact sheep and beef farmers. Photo / Bevan Conley
Whanganui’s deputy mayor says the Government’s proposal to charge farmers for greenhouse gas emissions could have a significant impact on the local and regional economy.
The proposed agricultural emissions pricing scheme would be effective from 2025 and aims to help New Zealand become a low-emissions country by developing a system to measure, manage, reduce, and price agricultural greenhouse gas emissions.
Whanganui district councillors and Rangitīkei District Council have both made submissions to central government against the proposed scheme.
“Agriculture plays a significant role in Whanganui’s economy, and many local businesses will be affected by the proposal through increased costs and reduced stock levels,” Whanganui Deputy Mayor Helen Craig said.
“The Manawatū-Whanganui region has the highest concentration of stock numbers in New Zealand, largely made up of sheep and beef.
“Therefore, the anticipated 20 per cent reduction in stock could have a significant impact on both the local and regional economy.”
Craig said Whanganui District Council supported the environmental aspirations of the plan and the need for strong climate action, but has heard concerns from the community about the economic impact of the proposal.
Rangitīkei Mayor Andy Watson said the council’s submission highlighted how the Government disregarded the importance of the primary sector.
“With almost one-third of our district’s GDP coming from primary production, we are concerned these incoming price changes may negatively impact our farmers and food producers, squeezing them out of some markets,” Watson said.
“The pricing scheme will unfairly impact our sheep and beef farmers, with the proposal suggesting a decline of 29 per cent in production.”
Watson said the council was disappointed about how little attention was being paid to the social and economic impact of the proposal.
Prime Minister Jacinda Ardern said the next step will be to work closely with farmers to develop the scientific and policy approaches needed to best recognise sequestration that occurs on farms. Photo / Mark Mitchell
“We think these changes will have a significant impact on rural communities, including on their spending power and general quality of life.
“This will no doubt impact farmers on a rating basis in Rangitīkei, and we expect to see the value of properties drop as a result.”
Prime Minister Jacinda Ardern said a recent consultation process highlighted how important the issue of sequestration was to farmers.
“This is work we already had under way, but the next step will be to work closely with farmers to develop the scientific and policy approaches needed to best recognise sequestration that occurs on farms.
“The Government has already committed to sequestration being recognised and compensated for from 2025. The He Waka Eke Noa (Primary Sector Climate Action Partnership), the Climate Change Commission and the Government all agree that it needs to be done in a way that is fair, cost-effective, and scientifically robust.”
She said this scheme was a way to achieve that.
Watson said it was essential the final proposal also recognised the effect on farms owned by tangata whenua.
“We expect this proposal will disproportionately affect Māori as they are historically large operators of the sector, making up almost one-quarter of farm owners across the country. However, there do not seem to be any specific measures proposed to mitigate the effects,” Watson said.
Rangitīkei District Council suggested several changes to the proposal, he said.
“To make this change fairer on our rural communities, we recommend central government undertakes a study in rural districts.
“The study should help them understand better the role farming plays in areas such as employment, schools, and business so they can see the real impact that reduced production will have on our communities.
“We have also suggested other ideas such as making sure that sheep and beef farmers report their emissions to the Government, but making them exempt from levy payments for the first two years, meaning they wouldn’t have to pay their first levy until 2027.”
