Tax fears from sheep tagging

Meat companies and the Agriculture and Forestry Ministry back the proposal for electronic ear tags for cattle and deer in order to trace their history from farm of origin. Improved biosecurity with the ability to tackle outbreaks of disease faster, plus higher on-farm productivity are a few of the trumpeted benefits. But Federated Farmers is digging in for a battle. Although sheep are not included in the scheme initially, there are fears they will be eventually. Mr McKenzie from the Feds said the average sheep farm earned only $20,000 of profit in 2007. "Basically, again MAF figures . . . show that carbon tax at $25 a tonne of carbon, the profit for the average sheep farmer is completely wiped out. The change in profit was minus 160 per cent," Mr McKenzie said. "So a carbon tax would be more than the profit that the farmer is making. That is based on the calculations that MAF did as far as the methane and the C02 equivalent emissions from the sheep farm. The farmers' lobby group surveyed farmers in August and found only 2 per cent supported Nait, 80 per cent opposed it and the rest were "in between", Mr McKenzie said, adding there was no benefit and a lot of cost.