"I can't say exactly what the end price will be because it involves a profit share arrangement with The Merino Company but the very fact that there is a market opportunity there proves there are opportunities as well as threats with this issue," Mr Wootton says.

As a director of The Climate Institute he is one of the leaders in the debate over agriculture and climate change and has a more positive outlook on the issue than many.

"I have spoken to 26 farming groups about this issue in recent times and my advice has been for farmers to understand the risks and the positives and negatives, to focus on climate change itself and not just an emissions trading scheme."

Mr Wootton is wanting more reliable data and better tools for farmers to manage climate change.

"It is pleasing to see that the farming sector is really engaged in the debate now and we need to all now push for some meaningful data from research and move on from there as I think there will be areas where we will gain and the increase in grain prices this year are an example of that."

Mr Wootton said emissions trading could pose significant financial risks for farmers.

"But let's learn from the New Zealand experience and make a scheme that better suits ourselves. However to say we shouldn't be involved because developing countries will benefit from our loss does not show the right leadership on the issue."