His warning follows that of Australian Farm Institute executive director, Mick Keogh, who this week said an emissions trading scheme (ETS) could reduce farm profits by 9pc due to rising costs, even though agriculture will be initially excluded.

While Mr Keogh warned the livestock sector would be hardest hit, he said farmers might be better off in the system.

But in New Zealand Mr Nicolson is warning that with "hundreds of amendments and last minute supplementary order papers", the ETS legislation is a "huge mistake".

"The legislation is ill-thought through, rushed, and has huge risks for the New Zealand economy and the nation," he said.

"This has all been pushed though parliament for short term political gain rather than any sound economic or environmental reasons that will benefit New Zealand or the globe.

"The reality is it will cost New Zealand significant real money and is unlikely to achieve the global outcomes sought.

"Agriculture, like the rest of New Zealand, will be affected from day one through higher input costs."