Wayne Langford: Federated Farmers president on the Government moving agriculture from the Emissions Trading Scheme

The Government's move to scrap agriculture from the Emissions Trading Scheme has been welcomed by rural leaders.

The newly-scrapped scheme would see farmers charged for additional emissions units used above their allotted allowance by 2025.

Agriculture Minister Todd McClay says the Government needed to focus on 'practical tools' that wouldn't reduce production or exports for Kiwi farmers.

Federated Farmers president Wayne Langford approves of this choice - but claims there's still significant work to be done. 

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Episode Transcript

Speaker 1 (00:00):
Heather dup c l pay on some very good news.
The government has announced it will remove agriculture from the
Emissions Trading scheme. The scheme would have seen farmers pay
for their emissions by next year. Now removing it means
that agriculture will be the only major sector again exempt
from the ETS. Wayne Langford is the president of Federated Farmers.

Speaker 2 (00:16):
Hey, Wayne, Hey, good to be here.

Speaker 1 (00:18):
This is a relief, isn't it.

Speaker 2 (00:22):
It is really? I mean, there's still significant work to do,
but it's good to have this weight off their shoulders. Aspicial.

Speaker 1 (00:28):
Yeah, what's the significant work that you have to do.

Speaker 2 (00:32):
We've got to continue to reduce our missions to help
to help reach the government's targets, right, and we've said
that we're going to do that and we are working
on that. However, we didn't need this threat of being
priced to a point, and that's driving many farmers broke.
That was never going to make any sense.

Speaker 1 (00:47):
Are you going to do any work because there's another
industry group that's now been set up to replace Harwalker Echino,
Are you guys going to do work towards finding a
way to price your emissions?

Speaker 2 (00:57):
Now? I don't see it, say that is the case.
I see it as a group that's working on reducing
our missions, and hopefully we can do that without pricing.
That's certainly what I'm leaving towards, and I certainly won't
be putting a price on our missions while I'm I'm
president of FED at Farmers, and I hope no one
else will be either.

Speaker 1 (01:14):
So were you of the view that we should not
price agricultural emissions?

Speaker 2 (01:19):
That is my view at the stage, because I think
we can come up with solutions without having to price it,
and if we can, that'll be better better for everyone.
And you know, if we can let the markets determine
what you know, what farmers can and can't do, then
then I think that's a good way forward.

Speaker 1 (01:34):
Yeah, thank god for some common sense here. Okay, but
what about the threat then that you're going to have
some I mean, I'm thinking particularly of dairy, right, that
you're going to have the likes of I don't know, Nile,
stop taking stop taking our products because our emissions they
consider to be too high.

Speaker 2 (01:48):
Well, I think that's a classic example, right, farming actually
moved faster than the likes of what her what recon
I was talking about. I mean We've got Nestleigh asking
us to reduce our missions, and Fonterra have responded by saying, hey,
we're going to do that with these twenty thirty targets.
So that's farmers taking responsibility for themselves without having to
have a price hanging over their heads and ultimately leading

(02:10):
the market decide.

Speaker 1 (02:11):
How does the government feel about you guys never paying
for your emissions?

Speaker 2 (02:16):
Oh well, I hope that they're feeling all right because
they know how much we contribute to the to the country.
And then I also on top of that, they know
how much we contribute to vival emissions. We actually bring
warm the down in this country by producing the milk
in the way that we do, and they know that
if they if they cap production here, it's going to

(02:37):
go off season, it's going to produce emissions that are
higher rate. That just makes no sense at all.

Speaker 1 (02:41):
Am I right in thinking there is no other country
in the world that charges farmers for their emissions.

Speaker 2 (02:46):
That's my understanding as well.

Speaker 1 (02:48):
So it would have been a completely crazy thing that
only we.

Speaker 2 (02:51):
Were doing well exactly when we are so efficient. That
was the frustrating thing about it. So, yes, we acknowledge
that you know they're there will be tools that will
come along, and other countries may may jump on these
and we may not be as the most efficient leading
into the future. But that's why we're going to keep
working on it. Right, We've got this competitive edge at
the moment. Let's keep working and spending the money on

(03:13):
that rather than than you know, some big text that
goes who knows where and producers who knows what?

Speaker 1 (03:21):
Wayne? You know, the thing about it is, I mean,
you can have some common sense in the current government,
but the last lot will pretty cookie, and there's always
the chance that the next red team that comes in
as kookie as well. Are you guys worried that you
might get a slight reprieve but this thing is just
going to come at you anyway.

Speaker 2 (03:37):
Oh well, that's that's why I think when we say
we're going to keep working on it, it is because
we are. I mean, you're right, it's common sense that
there will be reviews of this as government's changed. But
you know, we also acknowledge that that we are doing
a fear bit of hard work here. We are in
front of the in front of the game, we feel,
and that's where we want to be when the next
government does come in, whether it be three six nine's views,

(04:00):
whenever that is, we'll be ready for it.

Speaker 1 (04:03):
Have you heard from many farmers about how they feel
about this.

Speaker 2 (04:07):
I'm certainly a fear bit of relief. I think that's
what I'm hearing early on. I'm just heading the field
days now, I'll be catching up with literally thousands of them,
I think. So it's going to be really interesting to
see what the mood is there and how farmers taken
it on.

Speaker 1 (04:21):
Yeah, I was going to ask you, what do you
think the mood's going to be like, because it's a
pretty tough time to be a farmer.

Speaker 2 (04:26):
Yeah, definitely a tough tough time. The Red Meates sect
here in particular doing it really tough. But the area
has been being going all right, but you know, there's
still not a lot of money around them, particularly not
going through the winter. So field days are going to
be a really interesting one, hopefully, Hopefully those that are
attending a buying something and the guys that are exhibiting
are getting something out of it as well.

Speaker 1 (04:46):
Good stuff, Wayne, listen, enjoy yourself and thanks for your time.
Wayne Langford, Presidents of Federated Farmers.

Speaker 2 (04:52):
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