ETS could be a cash cow for some farmers

Are the Feds barking up the wrong tree on the ETS?

This article in The Rural News looks at opportunities for some farmers on the emission trading scheme.

Many farmers have woodlots and small forests planted in unproductive bits of land, that will provide revenue to offset any livestock emissions. They may even have a surplus that could be traded profitably in the future.

With some land now not economic for sheep and beef farming, forestry options to generate carbon credits and income could be a good option.

A forestry consultant says Federated Farmers’ strong opposition to the Emissions Trading Scheme (ETS) is actually depriving some farmers of an excellent opportunity to make legitimate revenue and secure some long term financial benefits for their operations.

Stuart Orme, Wairarapa, says if the Federation took a more enlightened approach to the ETS instead of becoming embroiled in a political argument and completely rubbishing it, many farmers would be able to cash in on some of the benefits of the ETS.

Instead, he says, farmers are being misled into believing that the ETS is a “total nightmare” when trees on their properties are capable of netting good returns from sales of carbon credits.

“A combination of carbon returns and long term production forestry offers an absolute boon for hill country farmers, many of whom are stuck with land that is slipping away and is fundamentally unsuitable for sheep." 

“Based on an average price of $22.50/NZU, a hectare of forest in southern Hawke’s Bay planted this year would return $4725 in the first 10 years from potential carbon sales, cumulatively rising to $12,300 in 20 years and $19,160 in 30 years.