Key facts
- Senator Sarah O'Reilly stated farmers are making progress in reducing emissions.
- She believes farmers are often scapegoated for emissions challenges.
- EPA figures show agriculture could reduce emissions by up to 19% by 2030.
- O'Reilly called for government supports to reduce both emissions and costs for farmers.
- She urged the government to lower the VAT rate on hydrotreated vegetable oil (HVO) used in agriculture.
Senator Sarah O'Reilly stated that farmers are making significant progress in reducing emissions and require practical support rather than being blamed for climate challenges. She highlighted that the Environmental Protection Agency's (EPA) figures indicate the agriculture sector could see emissions fall by up to 19% by 2030, based on planned government policies. These projections are attributed to measures like reduced fertilizer use and adoption of lower-emission technologies. O'Reilly emphasized that farmers' efforts should be recognized and matched by government supports that lower both emissions and costs. She specifically called for the removal of VAT on hydrotreated vegetable oil (HVO) fuel used in agriculture, noting that HVO currently costs 15-25 cents per litre more than conventional diesel. Farmers pay 13.5% VAT on green diesel but 23% on HVO, and removing VAT on HVO would make the transition to greener fuel more affordable. O'Reilly believes such a step would be mutually beneficial for agricultural workers and the government, providing positive incentives for environmental progress.