Unknowns unnerve

It is not just the number of zeroes in the figures that concern Lindsay and Margaret Dempster about the impending emissions trading scheme, rather it is the unknown.

For example, Mr Dempster asked what the effect would be on meat and fertiliser companies from the first stage of the emissions trading scheme (ETS) which came into force for energy and electricity on July 1.

The threat of the ETS on their farming business clearly concerns the Dempsters, and their initial research estimates their liabilities when they have to account for all their greenhouse gas emissions at $100,000.

To offset those emissions, Mr Dempster said would require them planting 250ha of trees at a cost of $400,000.

He said they had suitable land for trees, but was reluctant to start planting until there was more certainty about the policy.

The Ministry of Agriculture and Forestry estimates the cost of the first stage of the ETS at $1200 for an average sheep and beef farm and $3335 for an average dairy farm.

It estimated that a dairy farm would need to plant 6ha of pinus radiata to offset the July 1 ETS costs.

 

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