Powering Farm

Business
Affordable energy is key
to regional prosperity

Australia’s farm sector is a significant contributor to Australia’s

economic strength, producing $60 billion worth of food and
fibre. For agriculture to continue on its trajectory of growth, the
sector needs affordable, reliable and lower emission energy.
To achieve this, the National Farmers’ Federation (NFF) is
calling on Government to provide energy policy certainty.

At a glance The Powering Farm Business document

brings together the NFF’s positions on climate
change, electricity and mining and onshore
• The world’s population is forecast to
gas development. The overarching policy
exceed 9 billion by 2050. Meeting this
seeks solutions that deliver for farmers and the
increased demand for food and fibre
environment through the provision of affordable,
while reducing global emissions will
be a challenge. reliable and increasingly lower emission energy
sources.
• Access to affordable and reliable
electricity is paramount to maintaining The nexus between climate
the international competitiveness of
Australian agriculture.
and energy policy
• Wholesale price hikes and outages Australia requires a national energy plan that
can destroy annual returns for some reflects all opportunities for energy generation
farmers in the space of a few hours. and is realistic about the manner in which energy
is supplied. There is significant potential for rural
• There is great opportunity for
and regional areas to take part in the future of
Australian agriculture to contribute to
Australia’s energy generation mix, building more
national emissions reduction goals.
resilient communities in the process.
• Proposals for mineral and petroleum
Those who continue to contribute to Australia’s
mining ventures on farmland must be
emissions reduction goals must be recognised
backed by robust science.
and rewarded for their actions.

NATIONAL FARMERS' FEDERATION 1 MARCH 2018

 Powering Farm Business 2018

Agriculture’s role in emission

reduction
The NFF recognises that climate change poses
a significant challenge for Australian farmers. As
a nation, we must act to ensure our economy
is well placed to cost efficiently reduce our
emissions profile.
There is great opportunity for agriculture to
contribute to national emissions reduction goals.
Agriculture contributes to the national emissions
profile by both sequestering carbon in soils and
vegetation and by emitting greenhouse gases
through, for example, livestock production and
cropping practices. Innovation is needed to
reduce agriculture’s emissions intensity and to
enable farmers to efficiently participate in carbon
markets.

The current electricity market
fails farmers
The National Electricity Market (NEM) is not
working for Australian farmers and needs
serious reform. Australia’s electricity sector is
undergoing transformational change as older
electricity generators reach the end of their
useful lives. A different generation is required
to achieve internationally-agreed emissions
reduction goals. Innovation will continue to drive
change in the way that electricity is generated
" and managed to meet consumer requirements.
Government policy must not
favour specific technologies, but
rather enable the technologies to
Government policy must not favour specific
technologies, but rather enable the technologies
to compete on their merits. The NFF recognises
the need for a smooth transition to a market
based system.
Australia must move from a policy environment
that is layered in policy distortions and subsidies
to one that is market-based.
Farmers need access to
affordable electricity
Reliability and affordability are key for farmers –
wholesale price spikes and outages can destroy
annual returns, in some cases, in the space of a
few hours.
Electricity use is variable across agriculture
depending on the intensification of operations,
location and business structure.

"
For some farmers demand is flexible while for
compete on their merits. others demand is driven by factors such as
weather and access to water.

NATIONAL FARMERS' FEDERATION 2 MARCH 2018

 Powering Farm Business
"
Efficient investment
in, combined with efficient
operation and use of, electricity
services is crucial for farmers,
other consumers and the wider
"
economy.
The replacement of ageing electricity
generators will require a substantial
transformation. Inefficient network investment,
ineffective regulation and a lack of policy
consistency is driving up electricity prices for
end users.
The owners of electricity networks must
bear the cost of their past inefficient network
investment decisions.
NATIONAL FARMERS' FEDERATION
2018
Mining and onshore gas
Agriculture and the mineral and petroleum
industries underpin the social and economic
fabric of rural and regional communities.
Australian agriculture plays a crucial role in
supplying fresh quality food to Australia and the
world.
The safety of Australia’s food must not be
jeopardised by the mineral and petroleum
industries. The NFF is concerned about long-
term environmental, economic and social
sustainability of farmers.
The nature of the mining and petroleum
industries means that they may have both
positive and negative economic, environment
and social effects.
The mineral and petroleum industries must take
all reasonable steps to avoid adverse effects on
communities, landholders and the environment.
Investment in robust scientific information is
critical to the protection of the natural resources.
Governments need to invest in information,
monitoring and compliance to inform the
regulation of the mining and petroleum sector.
3 MARCH 2018
Powering Farm Business 2018

What we need from Government

Government must deliver a national energy plan that:

1. Is technology-neutral, market-based and 5. Empowers and builds capacity in
economy-wide, delivering affordable, regional, rural and remote communities to
reliable and secure energy; contribute to secure and reliable energy
supply and storage;
2. Supports increased competition across all
aspects of the electricity and gas markets; 6. Ensures that rural, regional and remote
Australia is not disadvantaged or left
3. Ensures sound economic regulation
behind by the disruption, and that the
of networks through the Australian
policy solutions are designed for all
Competition and Consumer Commission
Australians, not just those in metropolitan
where competition is low, especially in
areas; and
regional and rural Australia;
7. Recognises and rewards landholders,
4. Supports innovation to capture the full
communities and industries that contribute
range of opportunities to improve energy
to Australia’s emissions reductions goals.
productivity, energy efficiency and low
emissions energy generation, including
renewable, thermal and kinetic energy;

This policy document has been developed by the NFF's Climate and
Energy Taskforce is based on four key NFF policy positions: 1) Climate Policy
2) Electricity Policy 3) Mining and Onshore Gas Policy and 4) Energy Policy.

, These documents can be found online at www.nff.org.au

National Farmers Federation

CONTACT: 14–16 BRISBANE AVE, BARTON, ACT
Scott Kompo-Harms % 02 6269 5666
GENERAL MANAGER OF ECONOMICS & TRADE w www.nff.org.au
% 02 6269 5666 m skompoharms@nff.org.au @nationalfarmers

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holders. The National Farmers’ Federation, nor its servants or agents, does not accept liability, including liability for negligence arising from information contained in this document.