Fertiliser tax of little benefit – FMA
By FW reporters
THE Governments idea of regional, tradable permits for fertiliser supply has been dismissed by the Fertiliser Manufacturers Association as impracticable.
A tax on fertiliser would neither influence application rates nor bring environmental benefit, claims an FMA statement.
“A tax would have to be imposed at a punitive level to have any effect on use. A 100% increase in the price of nitrogen would reduce the optimum fertiliser application rate by less than 10%,” the FMA states in response to the Governments consultation on proposed taxes and licences for chemical fertilisers and pesticides.
The FMA says nitrate content in watercourses has not declined despite a 15% drop in fertiliser use over the past 10 years.
The association also states that the “polluter pays” principle should not be applied to agriculture unless it can be shown that excessive levels of inputs are being used.