Farmers are facing a carbon tax of up to $50 a tonne, which will increase the cost of their food and fuel, and may even have the effect of driving up the price of commodities, according to a new report.
Agriculture sprayers will be taxed at a rate of 25 per cent, while farmers who sell the agricultural product to a consumer will be required to pay the tax at a percentage of the value of the product.
The Agricultural Engineering Association (AEA) said that a higher rate of carbon tax could have an adverse impact on farmers who are selling their crops, while the cost to producers of the agricultural products would increase.
“It’s not an easy choice,” AEA spokesman Dan Lewis said.
Agricultural sprayers already pay the carbon tax in other countries. “
We need to be prepared for it.”
Agricultural sprayers already pay the carbon tax in other countries.
Australia’s state and territory governments are currently considering introducing a carbon levy to cover a portion of the cost.
The proposed carbon tax will be introduced at a later date, but Mr Lewis said it was likely to be introduced within six months.
The ABC has asked the Department of Agriculture for comment.
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