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PLUG Contends That Taxing Agriculture Production Is Really Dumb

The Primary Land Use Group (PLUG) has been in existence for about 5 years. The Group came about as the Rural Sector became concerned about the Waikato Regional Council Plan Change (PC1) That bureaucratic planning process burned through more than $35 million dollars. This should have been spent on working alongside landowners to improved water quality outcomes. We are concerned that the current HWEN proposals will also lead to financing bureaucracy rather than producing answers to the emissions issues.

PLUG is concerned that Taxing Agriculture either through the ETS or through the current HWEN proposals will not reduce emissions. PLUG along with a growing number of other Groups such as the large Groundswell team want to ensure that we develop and promote a more practical approach to lowering Agriculture emissions. A number of improved options have been suggested that must be considered

High on the priority PLUG urges the full support of the requirement of the Paris Climate Accord that states an unequivocal need to PROTECT FOOD PRODUCTION. We note and are proud of New Zealand Agriculture being amongst the Worlds most efficient (emissions per kg of product) We don’t’ think raising the cost of production will do NZ consumers any favours. Likewise limiting NZ efficient production encourages less efficient producers across the World to fill the gap. Note NZ Agriculture punches well above its size feeding up to 40milion people around the planet.

PLUG is very concerned that the proposals presented to date are too bureaucratic, expensive, slow and results aren’t certain.

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Neither a ‘Price Tax’ on Ag nor the ‘ETS Tax’ is warranted as adaptation methodology. Looking forward ‘Price Taxing’ AG and the ‘ETS Tax’ will adversely impact on the New Zealand economy while other major Countries continue aggressively adding to CO2 emissions.

Our view is that providing good science adaptation technology for the Ag sector to improve our conversion efficiency (energy) in producing food does make sense. Doing so would lower emission leakage, lead to more efficient food production and lead to lower total emissions.

PLUG believes that linking individual on-farm emission data (such as Fonterra has provided to its suppliers) to practical management options to reduce emission leakage is useful. The Ag sector has proved that it is capable of quickly taking up technology once the tools become available.

PLUG disagrees with the push to put a ‘Price on Emissions’. This is of course slang for another Tax.

Eventually, new technology developed with solid science backup will provide worthwhile options to Agriculture to lower their emissions profile. There is a better way than ‘pricing’ and taxing’. That is counter-productive, counter-intuitive and administratively costly.

PLUG recognises that NZ AG should invest in seeking solutions to our emissions profile. PLUG suggests utilising the current levy system to establish a dedicated fund solely focused on solutions. Using the current levy process (farmer vote) provides farmers with true ownership which in our view makes for rapid uptake of any worthwhile technology.

We urge our Levy organisations along with the HWEN Committee to recognise and promote ‘self-management’ of the issue by taking a strong stand and not accepting the Climate Minister’s threat to ‘Price’ or be thrown into the ETS. Blackmail by any other name is Blackmail.

Our Government Ministers should be above threatening such action.

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