The following was emailed to farmers on 13 April 2022.
Thank you to everyone who had their say on the Primary Sector Climate Action Partnership – He Waka Eke Noa – agriculture emissions pricing options during our February/March roadshow and engagement, hosted together with DairyNZ.
It was hugely important that we heard from farmers during this process. Your feedback is helping us refine and improve the proposals – we are taking this back to the rest of the partnership, including the Government, and having robust discussions on what changes are needed. We will be advocating strongly on what’s important to you.
We know this is a really complex and difficult topic and the solution will never be perfect. The feedback reinforced that our priority must be to keep costs down and ensure the ongoing viability of individual farm businesses so that our rural communities continue to thrive.
We’ve developed a one-page summary (PDF, 133KB) of what you told us.
Farmers told us:
- There was a strong preference for the farm-level levy option. These farmers told us they want to be recognised and incentivised for individual actions, have a say on the farm emissions price and have choices about their farm management. However, there were concerns about sector readiness for a farm-level pricing system and the cost of implementing this by 2025.
- More farmers wanted to move straight to farm-level pricing in 2025 than wanted to transition to a farm-level pricing from a processor-level hybrid levy.
- You told us you didn’t want agricultural emissions to be priced through the ETS.
- You also told us you support: better recognition for sequestration happening on your farms, including moving the 2008 baseline; keeping the cost of administration of the entire system – and the levy price itself – as low as possible to achieve the outcomes (such as using existing systems like IRD); and revenue raised being recycled back into research and development and use of new technologies.
- There were several factors identified that would help make it an easier transition for farmers: training and support; keeping the system manageable; and having a reporting solution that’s integrated with other reporting, management and regulatory tools.
Further addressing your strong support for split gas pricing and its importance for setting climate change targets we will:
- Continue to advocate on your behalf in parallel to our work in the He Waka Eke Noa partnership.
- With DairyNZ, continue to call for the Government to report on warming as well as emissions, and to commit to using the latest science when it reviews the methane emissions targets in 2024.
About the feedback summary
The summary captures what sheep and beef and dairy farmers told us at roadshow in-person and online events during the consultation period. The feedback is being used to inform our discussions with He Waka Eke Noa partners as we work through the practicalities and develop the recommendation to Government, which is due 31 May.
The He Waka Eke Noa partnership will release information about all submissions received from across the agriculture sector at a later date.
A final note
While consultation has closed, this conversation is an ongoing one. You can talk to one of us or your local Director at any time.