It says the Federal Government's decision not to include agriculture at the outset of the proposed ETS came as no surprise given the problems and cost of measuring greenhouse gas impacts on individual farms.

But in calling for more research, Growcom chief executive, Jan Davis, has also hit out at the "basic premise of an ETS under the Kyoto Protocol", saying such a system is inherantly flawed.

"Adequate consideration is not given to carbon stored in agricultural systems nor is there any separation between human and natural emissions," Ms Davis said.

"This significantly reduces the capacity of the agriculture sector – and, in particular, horticulture - to benefit from a trading scheme.

"We need more research into agricultural emissions, emission reduction practices and carbon capture methods to better inform the policy debate when the government again reviews the inclusion or exclusion of agriculture in 2013.

"Poor accounting rules mean that we can't measure it and trade it under an ETS.

"If we can't trade it, everyone loses."

Ms Davis says government policies are needed that provide incentives for improved on-farm practices for both emissions and carbon capture, without the enormous costs and risks involved in the premature inclusion of agriculture in an ETS.

"This would help further reduce emissions in horticultural systems which already are only a very small contribution (around 1.3pc) to overall emissions from the agricultural sector," Ms Davis said.