Farmers will be hit from day one by the Federal Government's Carbon Pollution Reduction Scheme with major increases to power, fuel and fertiliser costs, according to Nationals Senator Ron Boswell.
Speaking during a debate in the Senate today, the Queensland Senator said one-third of total broad acre farming input costs were energy dependant.
"This includes direct costs such as fuel and electricity, as well as other energy dependent farm costs such as freight, fertilisers and crop contracting," he said.
"This figure increases to a substantial 45pc of input costs for cropping operations.
"If our international competitors do not have a similar scheme in place, we stand to lose markets and viability across agriculture.
"The Australian Food and Grocery Council have stated that any emissions trading scheme which does not include international emitters represents a real threat to the packaged food and grocery industry.
"The Australian dairy industry is highly trade exposed. The proposal to exempt imports from any exposure to the scheme provides overseas companies with a direct competitive advantage."
Sen Boswell also cited figures from an abattoir on the costs of livestock emissions - at 100g per day over 2 years, each animal would be responsible for 1.679 tonnes of CO2.
"There is very little opportunity for the farmer to offset these emissions and the cost will be passed forward through the supply chain to the abattoir," he said.
"At an intake of 180,000 head per annum Rockdale Beef says it would need to purchase $6m worth of permits per annum ($33.60 per hd) and would need to pass the cost onto the customer.
"Furthermore, at a stocking rate of 50,000head, the feedlot would need an additional $840,000 per annum to offset its emissions due to on site ruminant activity.
"As Rockdale make clear in their submission to the Green Paper, this is an untenable situation as Rockdale's export competitiveness will be lost immediately and/or the farmers growing cattle for Rockdale will be forced out of business."