According to the Cattle Council of Australia, the Gunn family's Sevenbardot Poll Hereford Stud, in the NSW Upper Hunter Valley, has calculated the likely cost imposition of the ETS via the Australian Farm Institute's FarmGAS calculator.

The Cattle Council took Canberra officials from the Department of Agriculture to the Gunns' property last week as part of its annual Rural Awareness Tour.

Sam Gunn told the group that his emissions costs under the Carbon Pollution Reduction Scheme could not be absorbed at current market levels and would force a restructure of his business.

“My farm costs could escalate to $88,000 a year if agriculture’s emissions are covered under the CPRS - that’s two men’s wages and a quarter of my annual bull sale,” Mr Gunn said.

The Cattle Council of Australia is supporting the push by the Coalition for permanent exclusion of agriculture’s direct emissions from the CPRS cap.

Otherwise, it says many graziers would have no choice but to reduce production in order to meet their liabilities.

Mr Gunn's estimated carbon cost of $88,825 (excluding EITE assistance) under the CPRS is based on carrying 1000 stud cattle, 700 store cattle and 5000 sheep, at a carbon price of $25/t; the price that is predicted in 2020 should agriculture be covered under a CPRS cap.

“All producers face the same stinging situation; it’s not difficult to see how a CPRS with financial penalties on direct farm emissions could destroy the beef industry,” Mr Gunn said.

Although the Federal Government has acknowledged the complexities of including agriculture in the CPRS, it has not permanently excluded it from the cap and trade system.

However, the United States, Canada, Europe and Japan have announced the exclusion of agriculture from their emissions trading schemes, in favour of providing incentives for food producers and stewards of the land to mitigate carbon.