Farmers warn of land grab under climate law

Farmers are warning that ‘turbocharging’ carbon credit offsets could negatively impact prime agricultural land and escalate conflict over land use.

National Farmers Federation chief executive Tony Mahar. Picture: AAP

Farmers have joined coalminers and gas producers in raising concerns about Anthony Albanese’s signature climate policy, warning that “turbocharging” carbon credit offsets could negatively impact prime agricultural land and escalate conflict over land use.

National Farmers’ Federation chief executive Tony Mahar said the safeguard mechanism, which will pass through the parliament on Thursday, could spark a “mass buy-up” of productive agricultural farmland by big-emitters to offset pollution.

The NFF also warned about “perverse outcomes” of the Labor-Greens safeguard mechanism deal and the need to protect Australian food and fibre production in the face of rising food prices and a growing global population.

Mr Mahar said while agriculture was excluded from the safeguard mechanism, which requires the 215 biggest-emitting facilities to slash emissions by nearly 5 per cent each year out to 2030, the NFF was concerned that heavy emitters would be “hungry for offsets from farmland”.

Safeguard-impacted companies are moving to aggressively broaden their search for domestic carbon offsets to achieve the ­government’s ambitious pollution reduction targets.

Despite pleas from the private sector, Climate Change Minister Chris Bowen has initially excluded access to international offsets under the safeguard mechanism, which commences on July 1.

“The safeguard mechanism will turbocharge demand for offsets, and with few other options on the table, emitters will look to farmland,” Mr Mahar said.

“This will potentially escalate land-use conflict, with pressure to turn food-and-fibre-producing land into carbon sinks to counter emissions from other industries.

“Farmers are serious about responding to climate change, but we have to ensure progress on climate doesn’t come at the cost of food security. It’s critical that government avoids a mass buy-up of productive farmland – including using the ministerial veto for projects ­exceeding 30 per cent of a farm if necessary.”

The warnings come after fossil fuel companies said the Prime Minister’s deal with the Greens was a “carbon tax by stealth” that will drive up energy prices, destroy jobs and kill foreign investment.

Bowen Coking Coal chief executive Nick Jorss warned companies may be forced to tear up longstanding coal contractual agreements with strategic partners as a result of the Greens’ amendments.

“That’s possible, absolutely. I think our neighbours are very concerned about this. This is the latest in a long list of regulatory changes that is really another kick in the guts for the industry,” Mr Jorss told Sky News.

While the government will get its safeguard mechanism changes and $15bn National Reconstruction Fund through the parliament this week, Mr Albanese and Housing Minister Julie Collins have failed to secure a single crossbench vote on the $10bn Housing Australia Future Fund.

With the Greens, David Pocock and Jacqui Lambie Network refusing to back Labor’s signature housing policy, Mr Albanese withdrew the bill to buy extra time for the government to lock-in votes ahead of parliament returning for the May 9 budget.

Opposition Senate leader Simon Birmingham rejected Mr Albanese’s claim Coalition “filibustering” had delayed the HAFF. “The Labor government has made absolutely no attempt to debate the housing bill in the Senate, let along bring it to a vote,” he said.

“Mr Albanese is showing that he’s either not across the facts or is seeking to blatantly mislead Australians by pretending that to pursue his poorly designed multi­billion-dollar housing proposal. Contrary to Mr Albanese’s claims, it is his government that slammed the door shut on his proposal being voted on by the Senate.”

Mr Albanese is refusing demands from the Greens and Senator Pocock to dramatically lift investment in social housing well above Labor’s pledge to build 30,000 affordable homes.

Attacking Adam Bandt in question time, the Prime Minister said it was “absurd to vote for zero rather than vote for progress”, and said the Greens leader knew the government could not just “flick a switch” and demand a rent freeze.