Mr Vaile said the recommendations of the Task Group to exclude agriculture from a carbon trading scheme, but enable it to engage in off-sets for emitters through on-farm forestry, were both logical.

Most agricultural emissions are methane from ruminant livestock.

"The Task Group acknowledges that measurement of methane emissions at the farm scale is not sufficiently advanced for farmers to be required to account for it via the proposed 'cap and trade' mechanism," Mr Vaile said.

"Other relatively minor farm based emissions, involving nitrous oxide from soil disturbance and the use of nitrogenous fertilisers, face similar constraints in the design of a trading regime."

But Mr Vaile said farmers had the potential to benefit through the recommended inclusion of farm forestry in an off-set regime.

"Farmers have been arguing strongly for this opportunity, in part to offset the massive contribution they have already made to lowering Australia's greenhouse emissions through a virtual end to broadscale land clearing," Mr Vaile said.

"Without that sacrifice Australia would be nowhere near capable of meeting the Kyoto target that we have adopted.

"Enabling farmers to now benefit from selling off-sets through carbon stored on-farm is a logical recommendation."

Mr Vaile said the degree of benefit for farmers from such a scheme would depend on the price of carbon in the market and scheme design.

"We will ensure a close involvement of agricultural interests in the design of a trading regime should it emerge from the Task Group's recommendations, to ensure farmers had the chance to maximise the opportunity," Mr Vaile said.

Mr Vaile also welcomed a recommendation for research and development spending on abatement opportunities in the agricultural sector.

SOURCE: Rural Press National News Bureau, Parliament House, Canberra.