Emissions trading could increase the production costs for livestock by 18pc by 2030 if farmers have to offset methane emissions from their cattle and sheep, according to ABARE.
And The Australian Financial Review is reporting that cropping expenses could also rise by 6pc if farmers have to pay for nitrogen losses from their farm land at a carbon price of $40 a tonne.
The preliminary research from ABARE, which was done before the government's white paper was released in December, shows that even if agriculture is not included in the scheme, farmers will face cost rises of 3pc for livestock and 4.5pc for cropping by 2030.
But ABARE says it "has not undertaken analysis of the government's proposed emissions trading scheme" and has not modelled the impact on the food-processing industry or on each commodity group.
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