Edition 189: Friday March 9, 2007.

The Farmingshow Straggle Muster

Climate Change and Farming - The Facts

Statements are being made by government and officials in regard to Climate Change that are misleading and do not tell the full story.

It is true to say that around 50% of New Zealand's Green House Gas (GHG) emissions come from farming.

However, Kyoto is based on a country's emissions relative to 1990, which is the base year used for Kyoto calculations. It is not based on total emissions.

When Kyoto begins to operate during the first Commitment Period (CP1) from 1/1/2008 to 31/12/2012 then carbon accounting will be carried out comparing the average emissions each year during CP1 with those of 1990. If emissions are above 1990 levels then there will be a cost to pay, if they are below, then there will be a value that can be applied to the reduction in emissions, which may have occurred by carbon sequestration in a new forest or, simply by a reduction in animals carried.

Department of Statistic figures show that the total sheep numbers have fallen by 18.8% from 1994 to 2006 and beef cattle numbers have fallen by 10% in the same period.

Since 1990 many sheep, beef and hill country farms have planted new forests (Kyoto Forests). For many (probably the majority) of New Zealand's farms they would in fact be in Kyoto credit relative to 1990 because of their tree planting and reduction in animals.

Those farms that have increased emissions eg Dairy Farm conversions would, of course, be in deficit.

The reduction in emissions, which may be represented by carbon sequestered in a new forest (after 1990) that you planted on your farm has a value and can be sold.

If you had one age class of forest and you sold all your credits then you could perhaps sell between $13,000 and $25,000 worth of credits per ha (dependent on price). However, if you did that, then the day you harvested your forest you would need to buy the credits back and then start selling them again as the new forest grew.

A much more prudent way would be to join with others and pool a large number of forests of different age classes and then just sell the credits that you could maintain forever across all of those forests provided you continued to replant them after harvesting. (We assume this is what the Government would be doing if it succeeds in nationalising the carbon credits from our forests).

Because of the multiplier effect on the time value of your money invested, the early return received from carbon credits will have a significant effect when compared with the eventual returns arising after 26 to 28 years from log harvest alone.

Property Rights

Farmers and foresters are both very respectful of the sanctity of private property rights. As well both groups (along with the vast majority of all New Zealanders') have an absolute abhorrence of retrospective legislation that removes an existing property right.

All New Zealanders need to be aware of the draconian clauses in the proposed climate change legislation as it applies to citizens' private property rights.

Roger Dickie - Kyoto Forestry Association.

And remember to get your lunchtime bite of farming every weekday afternoon from Noon to 1pm on a radio station near you:
Nation-wide on Newstalk ZB in Alexandra on 95.1FM, Ashburton on 873AM, Blenheim on 92.1FM, Gisborne on 945AM, Greymouth on 99.1FM, Oamaru on 1395AM, Queenstown on 89.6FM, Taupo on 95.9FM, Timaru on 1152AM, Tokoroa on 1413AM, Wairarapa on 846AM, Wanaka on 90.6FM and Wanganui on 1197AM.
Hokonui Gold in Southland and West Otago on 94.8FM
Radio Clutha in South Otago on 96.9FM
Central FM in Hawkes Bay on 93.5, 96.6 and 99.4FM.

Or visit our home on the web at farmingshow.com.