AH11019 - The impacts of the proposed carbon price mechanism on Australian horticulture

Australia’s carbon price mechanism will come into effect in July 2012. While

agricultural industries will not be directly involved in the carbon price mechanism, it is
expected that the carbon price will result in cost increases for key agricultural inputs.
These price increases will be most significant for energy (i.e. electricity and fuel) and
energy-intensive inputs such as fertiliser and chemicals.
This report will directly address this priority issue and will provide a detailed but
easy-to-comprehend summary of the key mechanics of the carbon price mechanism.
It will furthermore present the likely impacts on horticulture, in particular an analysis
and discussion of the economic impacts of projected cost increases, including
impacts on farm profitability.

Australia’s carbon price mechanism will come into effect in July 2012. Whileagricultural industries will not be directly involved in the carbon price mechanism, it isexpected that the carbon price will result in cost increases for key agricultural inputs.These price increases will be most significant for energy (i.e. electricity and fuel) andenergy-intensive inputs such as fertiliser and chemicals.This report will directly address this priority issue and will provide a detailed buteasy-to-comprehend summary of the key mechanics of the carbon price mechanism.It will furthermore present the likely impacts on horticulture, in particular an analysisand discussion of the economic impacts of projected cost increases, includingimpacts on farm profitability.