Home / Knowledge / News / Textiles / Cotton farmers count the cost of the carbon tax
Cotton farmers count the cost of the carbon tax
01
Jul '11
Australian cotton farming families will still face a 5.5 percent cut to their farm net income following the imposition of a carbon tax, despite the Government's claim that agriculture will be excluded.

Independent research produced by the Australian Farm Institute for Cotton Australia and the National Farmers' Federation (NFF), modelled the impact of an economy-wide carbon price tax commencing at $20 per tonne on a typical irrigated cotton farm of 400 hectares.

Modelling under this scenario shows that five years after the introduction of a carbon tax, this farm business would incur total annual cost increases of 2.1 percent, producing a reduction in farm net income of 5.5 percent at year five.

Costs arise from an increase in the price of energy, which would increase the cost of energy-reliant farm inputs, such as electricity, fuel and fertiliser.

NFF President Jock Laurie says this research clearly shows that Aussie farming families will be left well behind in an increasingly competitive global cotton market.

“Quality Australian cotton has always been in high demand around the world, but whacking a carbon tax on top of existing production costs will wipe out our price competitiveness, placing our traditional markets at risk,” Mr Laurie said.

“We'll continue to do the modelling work that the Government should be doing to expose the folly of rushing into a carbon tax, when none of our international competitors have to carry that same burden.”

Cotton Australia CEO Adam Kay says the Australian cotton industry currently has a tiny carbon footprint, producing less than a third of one percent of the nation's Green House Gas emissions (GHG).

“Australian Cotton farmers have already put in the hard yards to reduce GHG emissions, adopting our specific Best Management Practices modules, designed to ensure growers use the right emission reducing technology and operational procedures,” Mr Kay said.

“We don't produce much GHG now, so we don't have that far to go towards reaching our cotton industry goal of becoming carbon neutral. It's about time the Government recognised and rewarded our efforts, rather than compromising our international competitiveness with another tax,” Mr Kay said.

The research paper 'The impact of a carbon price on Australian Cotton Businesses' is the third in a series of papers being developed by the Australian Farm Institute, and is available below.

National Farmers' Federation (NFF)

Must ReadView All

Textiles | On 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search