NZ farmers have a cow of a time on emissions

The Kyoto Protocol will hit the pockets of New Zealand food producers for little environmental benefit, according to a NZ farm leader.

The president of the Federated Farmers of New Zealand, Charlie Pedersen, said greenhouse costs were already accruing for NZ farmers, despite farming not being directly affected by an emissions trading scheme (ETS) until 2013.

Mr Pedersen said under the ETS now before the NZ parliament, different sectors of the economy would be phased in over five years.

"On the face of it, we as food producers get a break, but in actual fact, in nine months' time liquid fuel, which covers transport, will be included," he said. "This will have an immediate impact on us."

He was addressing a conference on greenhouse, agriculture and emissions trading, organised by the Australian Farm Institute on the Gold Coast.

Mr Pedersen said energy would be included the following year, which would have a big impact on farming. The baseline year is 2005, effectively backdating the scheme.

"We will need to account for any development since then, come 2013. This just adds to the cost on us as the costs are already accruing," he said.

"Every time I drive my tractor out of the shed or turn on the machine at the dairy shed, I'm also trading in emissions. And, of course, whenever I see my cows performing a natural act of nature the same applies."

Agriculture accounts for 48.5% of NZ greenhouse gas emissions, with energy and transport making up most of the rest.