This is to update you on the Rabobank emissions white paper and your chance to say a last goodbye to the Farming Tax by telling MPs you support the bill to remove agriculture from the Emissions Trading Scheme.

Rabobank on emissions

You may have seen our previous emails about Rabobank asking for feedback on their report Maintaining Our Emissions Edge.

In the middle of campaigns to get the banking sector and rural lending sorted, and our campaign to include banks’ treatment of agricultural emissions in the coming inquiry, Rabobank’s report was bound to come into the debate.

In case you didn’t see the full story, we gave our supporters a link to their Facebook post that asked for feedback, saying they may want to tell Rabobank what they think of a bank weighing on emissions. Then Rabobank’s Facebook post disappeared, and we wondered if that was due to all your feedback. Rabobank later said the post deletion was a mistake and put up another post asking for feedback.

Now you’re caught up, we should clarify something about our take on Rabobank and their white paper.

In our email about it, we said:

This has become a near constant refrain from the usual suspects. They say New Zealand food producers need to worry about our customer base around the world wanting lower emissions food.

While there’s no evidence for a market share or price premium from this emissions-conscious customer base, what they don’t mention is that New Zealand’s exported food is already among the world’s most emissions-efficient. Those customers who want that should already be clamouring for our exports.

Rabobank pointed out that they did mention New Zealand farming’s emissions efficiency and, while we were talking about the “usual suspects” there rather than Rabobank in particular, we think it’s fair to point out those bits of the Rabobank white paper:

“While New Zealand farmers rank among the most emissions-efficient suppliers of dairy and beef globally, maintaining this position demands concerted effort.” (page 24)

“While New Zealand’s dairy, beef and sheep production each show one of the highest emissions efficiencies per output unit compared to our global competitors, further emissions efficiency is required.” (page 30)

“Maintaining our position as one of the most emissions-efficient agricultural producers globally is by no means solely a defensive posture – it is our emissions edge that will provide ever-stronger opportunities for New Zealand farmers and growers in the years and decades ahead.” (page 34)

For those interested in the report, you can read the white paper for yourself at: https://www.rabobank.co.nz/knowledge/primary-industries-summit  

We think our main points still stand:

• Banks shouldn’t be in the emissions game because they’re not equipped to deal with the active scientific inquiry in the agricultural emissions space.
• The claimed international markets and consumers that want low emissions food should already be seeking New Zealand products because we’re already at the top of that list. Though we’re yet to see evidence of any advantage on price premium or market share from being there.
• Pressure to reduce agricultural emissions or increase emissions efficiency through unworkable regulations and expensive processes will only send production offshore to less efficient foreign famers. That would mean higher global emissions and a poorer New Zealand.

We've seen Westpac is asking their customers for feedback as well. If you have been emailed by them, consider telling them what you think and including those points above.

Say goodbye to the Farming Tax

The bill to remove agriculture from the Emissions Trading Scheme is out for consultation.

Tell MPs you support ending the Farming Tax for good by clicking here and sending a submission to the select committee.

You might want to include the key points from our campaign that got this bill into the new Government's manifesto. The Farming Tax is:

• Counterproductive, as emissions from less efficient foreign farmers will increase when they replace New Zealand's market share;
• Punitive, as it punishes Kiwi farmers for already being the lowest carbon emitters in the world;
• Unworkable, as farmers will face costs and compliance duties far in excess of the potential small change to emissions.

We don't want the only voices MPs hear to be from the anti-farming crowd, so take just a minute to make a short submission. Even a few lines lets them know they have to keep going ahead with the bill despite the opposition.

Thank you again for your support.

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Kind regards,

Bryce, Laurie, Mel and the Team at Groundswell NZ

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