With the carbon tax repeal bill now passed by the House of Representatives, the National Farmers Federation says the Senate must now finish the job when the bills are introduced this week.

Chair of the NFF Sustainability Committee, Gerald Leach, said that the NFF has not supported the carbon tax due to the unnecessary costs it adds to Australian farm businesses, agricultural input suppliers, and food processers.

“Australia’s farmers have led the way in emissions reductions without the carbon tax, yet agriculture remains a heavily affected sector due to the flow on costs of the carbon tax applied to the suppliers of electricity, fertiliser, chemical and fuel,” Mr Leach said.

Work undertaken by the Australian Farm Institute in 2008 suggests that the average farm business, depending on the commodity produced, will incur additional costs of up to $10,000 per annum. For example, work undertaken by the sugar industry suggests increased costs of the carbon tax of some $20 million, resulting in lost farm profitability due to higher input costs.

“With coverage for fuel set to commence on 1 July 2014, the carbon tax will continue to impact on farmer profitability as all inputs come via road transport, fuel is needed for production, and all harvested commodities leave the farm by road,” Mr Leach said.

“The NFF urges the Senate to pass the repeal legislation before Christmas,” Mr Leach said.

Source: NFF