AgForce has backed Professor Ross Garnaut's recommendation that agriculture be excluded from the national emissions trading scheme, saying no other country in the world has been able to find a way of accurately covering farming.
AgForce president Peter Kenny says the introduction of a national emissions trading scheme (ETS) has the potential to be the largest economic reform this country has ever seen and the potential implications for agriculture are immense.
Mr Kenny said because of the complexity in measuring agricultural emissions and sequestration and its impact on food prices, no country in the world currently had agriculture as a covered sector (i.e., one taxed on its emissions).
"Even New Zealand - which had planned to make agriculture a covered sector within the first few years - is now beginning to back away after government figures showed that their proposed scheme could cut farm profitability by between 20-40pc, pre tax," he said.
"AgForce does not believe agriculture should be a covered sector in Australia.
"What we do support is the use of research as it can deliver both improved efficiency and reduced emissions.
"The Federal Government is still unable to demonstrate how it plans to account for the significant offsets already provided by agriculture (unlike the major emitting industries) or how it plans to account for the price we have already paid here in Queensland because of the land clearing legislation.
"Australia also currently lacks the mechanisms needed to independently measure agriculture's carbon emissions and it's vital to our industries that both their emissions and the full scope of their carbon sequestration are known, measured and understood."
Modelling from the Australian Farm Institute estimates that input costs could increase by up to 45pc for some cropping enterprises and 15pc for some livestock operations.
"Increases of this scale would make many producers unviable even if agriculture is not a covered sector, it will certainly drive up the price paid by consumers," Mr Kenny said.
"The Federal Government has some difficult decisions to make but no sector of the economy is more exposed than this nation’s farmers. We not only have to deal first hand with the practical implications of climate change but also the economic implications of an emissions trading scheme."