A new report from Farmers for Climate Action has found coal, gas and oil companies buy most of Australia’s carbon credits. But they have not cut pollution at their own sites. Farmers are left carrying the cost.
The report, Shifting the Burden, was commissioned by Farmers for Climate Action. It was written by Oscar Pearse, a Moree based carbon and agriculture consultant with Regional Policy Solutions.
“The data and projections show the long-term threat to agricultural land if large polluters are not restricted from passing their emissions reductions onto farmers,” Mr Pearse said.
It found typical farm profits have already fallen by nearly $30,000 a year, or $550 a week. The drop is linked to worsening fires, droughts and insurance costs caused by climate change. The figures come from the Australian Bureau of Agricultural and Resource Economics and Sciences.
At the same time, the report says farmland is already providing a carbon offset service. It estimates that service would be worth $1.2 billion a year if it were sold as carbon credits. Farmers are not paid or recognised for it.
The report makes several recommendations. It calls for policies that drive real emissions cuts at industrial sites, rather than relying on farmland offsets. It wants an end to carbon policy exceptions for coal-fired power, which it says can currently avoid accountability. It also calls for food-producing land to be protected from being converted permanently to carbon plantings.
“The industrial polluters will always prefer to pay for food-producing land to be planted to carbon plantings, instead of reducing their pollution at the source,” Mr Pearse said.
“What’s best for Australia is to maturely fix the Safeguard mechanism, drop least-cost abatement principles, and consider the wider picture.”
Mr Pearse said he took on the report to help farm groups engage with the federal government’s review of the Safeguard Mechanism. Public submissions to that review close on 18 September.
“We think it’s an opportunity for a major set of changes to the way the Australian government and all the businesses who are large polluters in the Australian economy handle their responsibilities when it comes to reducing emissions,” he said.
“Essentially, stop handing the problem and the burden onto Australian agriculture.”
Former NSW Farmers president Mal Peters OAM has also backed the findings.
“Twenty-two years ago, I said farmers were carrying the environmental load for the whole country without getting the recognition for it,” Mr Peters said.
“Today, Australian agriculture is quietly providing a service worth over $1.2 billion a year to industrial polluters like coal and gas.”
“Regional Australia is still effectively subsidising big industry.”
“It’s time our land and communities weren’t treated as a cheap shortcut for heavy industry.”
Farmers for Climate Action chief executive Verity Morgan-Schmidt said the findings should not come at farmland’s expense.
“We can’t lose food-producing land to save coal and gas polluters a few dollars,” she said.
“Farmers see the opportunity in carbon offset income, and also know we need to consider how to protect food-producing land very carefully.”
Former NFF president David Jochinke also welcomed the report.
“This report articulates a compelling case for fairer climate policy that properly rewards Australian farmers for their essential role in supporting national decarbonisation,” he said.
The full report is available at Farmers for Climate Action’s website.
More details about the Safeguard Mechanism review consultation and how to make a submission are available on the Department’s consultation website. Consultation closes September 18, 2026.
Like what you’re reading? Support New England Times by making a small contribution today and help us keep delivering local news paywall-free. Donate now