Are You Ready? Emissions Laws That Could Impact Your Cattle Farm

Australia’s agricultural industry is undergoing a significant transformation with the introduction of new emissions laws aimed at tackling climate change. For cattle producers, these changes are particularly impactful, as the country’s farming practices, especially livestock production, contribute significantly to the nation’s greenhouse gas emissions. 

The government's efforts to reduce carbon footprints have resulted in stricter regulations, requiring more businesses in the agricultural sector to report their emissions than ever before.

As the 2025 deadline approaches, cattle farmers are left grappling with these complex new laws. Family-owned farms, traditionally exempt from such regulations, now find themselves thrust into a challenging regulatory environment. This article will explore the key aspects of these new emissions laws, their implications for cattle businesses, and what steps farmers can take to prepare.

Understanding the New Emissions Reporting Laws

In 2025, the Australian government introduced mandatory greenhouse gas emissions reporting for large-scale agricultural businesses as part of its broader sustainability efforts. 

These laws are designed to reduce emissions from industries that are major contributors to climate change, including agriculture, which is a significant sector in the nation's carbon footprint. Cattle farming, in particular, is a target of these regulations due to the substantial methane emissions produced by livestock.

The introduction of these laws marks a major shift, as agricultural operations that meet certain criteria will now be required to track and report their greenhouse gas emissions annually. 

This is part of Australia’s commitment to reducing national emissions and achieving climate goals, but it also means that many small to medium-sized cattle businesses will now face compliance burdens that were previously reserved for larger operations. 

The threshold for emissions reporting has been lowered, impacting a wider range of businesses than ever before.

Thresholds for Emissions Reporting

To determine whether your cattle business is subject to these new laws, you must assess whether it meets two out of the three key criteria outlined below. If you meet the thresholds, you will be required to track and report your greenhouse gas emissions annually.

1. Annual Revenue: $50 Million or More

The first criteria for compliance is based on annual revenue. If your cattle business generates $50 million or more in revenue each year, you are required to report your emissions. For many larger commercial feedlots or trading operations, this threshold may be easily met. 

However, even some mid-sized farms that expand to meet growing demand could be unexpectedly pulled into these regulations.

2. Assets: $25 Million or More

The second threshold is based on the value of the farm's assets, which must total $25 million or more. This includes land, livestock, equipment, and other capital investments that contribute to the business's overall value. 

Farms that have invested heavily in infrastructure or land expansion may be subject to these reporting requirements, even if their revenue is below $50 million.

3. Employees: 100 or More Employees

The third criteria involves the size of your workforce. If your cattle business employs 100 or more full-time employees, it will trigger the requirement for emissions reporting. 

This is typical for larger, more commercialised farming operations but may apply to certain family-owned operations that have grown and expanded, particularly those operating feedlots or multiple properties.

What Does Emissions Reporting Include?

Once your cattle business meets these thresholds, you will be required to report all greenhouse gas emissions related to your operations. This includes:

• Methane emissions from cattle: Methane is the primary greenhouse gas emitted by livestock, particularly cattle, as a result of enteric fermentation (digestive processes). Cattle produce significant amounts of methane, contributing a large share of agricultural emissions.
• Energy use: This covers emissions from farm fuel, including diesel for machinery, gas for heating, and electricity used by farming operations such as cooling, lighting, and refrigeration.
• Other greenhouse gases: This could include emissions from fertiliser use, pesticides, or waste management. Farms must account for greenhouse gas emissions from their daily operations, which contribute to their carbon footprint.

How This Affects Smaller, Family-Owned Farms

Historically, smaller family-owned cattle farms with revenue under $50 million, fewer than 100 employees, and assets under $25 million were exempt from emissions reporting. However, the new regulations are designed to capture a broader range of farms, including many that previously didn’t need to comply.

For example, a family-run farm that has grown over time and now meets the employee or asset thresholds will be forced to adopt emissions-tracking and reporting systems, potentially at significant cost. 

The administrative burden of managing these new reporting requirements could be especially challenging for smaller farms without dedicated compliance teams or access to the necessary resources.

The Financial and Operational Impact on Cattle Farmers

The financial and operational implications of the new emissions laws are significant, especially for smaller and family-owned cattle businesses. The costs associated with compliance, including the setup of tracking systems and ongoing reporting, can be substantial.

Compliance Costs

For large operations, the initial cost of meeting emissions reporting requirements ranges between $1 million to $1.3 million, including investments in emission tracking systems, staff training, and consultancy fees. 

Once compliance is achieved, businesses will still face ongoing costs, estimated at $500,000 to $700,000 per year for managing emissions records, conducting audits, and maintaining systems to ensure continued compliance.

These added expenses are particularly burdensome for smaller operations, which often operate on tight margins and have fewer resources to handle such complex administrative tasks.

Comparing Sectors: Why Farmers Are Held to Stricter Standards

A significant source of frustration among cattle farmers is the perceived double standard between the agriculture and mining industries. Both sectors contribute heavily to emissions, yet they face drastically different reporting requirements.

Mining’s Free Pass: The Loopholes and Their Impact

Despite the mining sector contributing a larger share of Australia’s overall greenhouse gas emissions, it continues to operate under less stringent regulations compared to the agricultural industry, particularly cattle farming. This disparity has led to concerns about the fairness of emissions regulations and the broader implications for sustainability in Australia.

Recently, the Australian government approved several mine expansions in the Hunter Valley, an area known for its extensive coal mining activities. This decision to approve fossil fuel operations, even as the agriculture sector faces increasing regulatory pressure, highlights a troubling inconsistency in the treatment of different industries. 

While agriculture, especially cattle farming, is burdened with strict emissions reporting requirements, mining operations are allowed to continue expanding, often without having to meet the same rigorous standards.

Why Mining Gets a Pass

One of the main reasons for the disparity between the mining and agriculture sectors is that mining companies are only required to report Scope 1 and Scope 2 emissions:

• Scope 1 emissions: These include direct emissions from mining activities such as fuel combustion and emissions from mining processes and equipment (e.g., methane and carbon dioxide).
• Scope 2 emissions: These refer to indirect emissions from energy consumption in mining operations, such as electricity used to power machinery and infrastructure.

However, mining companies are not required to report Scope 3 emissions, which cover emissions across the entire supply chain:

• Scope 3 emissions: These include emissions from transportation (e.g., moving extracted minerals to processing plants), processing (e.g., refining coal or gas), and distribution (e.g., delivering the final product to market). Scope 3 is significant because these indirect emissions can often exceed direct emissions.

On the other hand, agriculture, particularly cattle farming, is required to report both Scope 1 and Scope 3 emissions:

• Scope 1 emissions: For cattle farming, primarily stem from methane released during enteric fermentation (digestion in ruminants) and other direct emissions from farming activities.
• Scope 3 emissions: For farmers, they are far more extensive, covering emissions from cattle processing, transporting livestock, retail distribution, and even food packaging, a much more complex and costly set of emissions to track.

This regulatory burden on farmers is significantly greater than that on mining companies. Farmers are held responsible for emissions across the entire supply chain, even though they may not directly control aspects like transportation and processing. 

In contrast, mining companies are only required to track emissions from the mine and its immediate energy use, leaving out a substantial portion of their carbon footprint.

The Policy Loophole and Its Impact on Agriculture

Despite mining's larger emissions, agriculture faces stricter regulations. Why are farmers shouldering more of the burden?

• Absence of Scope 3 emissions reporting in mining: Creates a significant policy loophole that favours the mining sector, despite its larger overall emissions.
• Exemption for mining companies: By not requiring full emissions reporting from mining companies, the government is effectively shifting the regulatory burden onto agriculture, particularly cattle farmers.
• Mining sector’s emissions: Especially from coal, are one of the largest contributors to Australia’s overall carbon footprint.
• Government approval of new coal projects: Despite the mining sector's major role in emissions, the government continues to approve coal mining expansions like the Hunter Valley expansions without requiring mining companies to take full responsibility for their emissions.
• Mining’s regulatory loophole: This allows mining operations to sidestep more stringent environmental oversight, whereas agriculture is subjected to much more rigorous regulations.
• Frustration in agriculture: Farmers face increasingly tight emissions laws, including the obligation to track and report Scope 3 emissions (often outside of their control, like emissions from cattle processing, transport, and retail).
• Costly compliance for farmers: Farmers must comply with costly and time-consuming reporting requirements that are growing as new laws are phased in.
• Mining industry’s continued expansion: Meanwhile, the mining sector, despite its larger emissions role, continues to expand operations with fewer regulatory constraints.

A Heavier Burden for Farmers

This inconsistency in how emissions regulations are applied highlights a critical flaw in Australia’s environmental policy. By not holding mining operations accountable for their full emissions footprint, the government is inadvertently imposing a heavier burden on agricultural industries, particularly farmers who are already facing economic challenges. 

The result is a skewed regulatory landscape where agriculture is left to shoulder a disproportionate share of the responsibility for reducing Australia’s greenhouse gas emissions, while the mining sector continues to benefit from more lenient regulations.

Addressing this policy loophole could help create a more equitable regulatory framework, ensuring that all industries, including mining, are held to the same emissions reporting standards. This would provide a fairer playing field for farmers and encourage all sectors to contribute equally to Australia’s climate goals.

The Ripple Effect: Rising Costs and Consumer Prices

The effects of these new emissions laws extend beyond the farm. As emissions regulations tighten, farmers face rising costs. How will these increased expenses impact the price of beef and other livestock products?

Higher Compliance Costs for Farmers

The new emissions laws are placing significant financial pressure on farmers. To comply with reporting and regulatory requirements, many farms will need to invest in new systems, hire experts, and allocate resources toward managing emissions.

These added costs, ranging from reporting software to training staff, are inevitable for most cattle operations. As a result, many farmers will likely pass on these increased costs to consumers, resulting in higher prices for beef and other livestock products. 

This price increase will not only impact families and individuals purchasing meat but could also create broader economic ripples throughout the food supply chain.

Financial Strain on Family-Run Farms

Smaller, family-run farms are especially vulnerable to the rising costs of compliance. Unlike larger industrial farms, many of these family operations do not have the capital or resources to absorb the additional expenses that come with emissions reporting and management. 

This financial strain could potentially lead to bankruptcy for some farms, forcing them to shut down. As compliance costs increase, family farms may be unable to remain competitive, unable to afford the systems and staff necessary to meet the new regulations. 

This situation could result in fewer small-scale farms operating in the market, significantly affecting Australia’s agricultural landscape.

Consolidation of the Industry

As smaller farms struggle with the financial burden of compliance, the agricultural sector could experience significant consolidation. Larger farming operations, which are better equipped to handle the costs of regulatory compliance, may expand their market share as smaller competitors exit the industry. 

This shift would lead to fewer, but larger, operations dominating the market, altering the industry's dynamics. With greater power concentrated in big farms, smaller family-owned businesses could be pushed to the margins, reducing the diversity of farming operations and impacting local economies that rely on small businesses for employment and production.

Potential for Reduced Competition

As smaller farms struggle to compete with rising compliance costs, the agricultural market may see reduced competition. This lack of competition can create a situation where fewer large-scale producers control much of the market, giving them greater influence over pricing and product availability. 

In the absence of smaller, family-owned farms, consumers may face fewer choices and less price flexibility. Furthermore, the concentration of market power could lead to situations in which large operations prioritise efficiency and profit over sustainability, potentially compromising the quality and diversity of agricultural products available to consumers.

Government Support and Incentives for Farmers

The government has introduced several initiatives aimed at helping farmers meet compliance requirements and reduce their emissions. These include the Emissions Reduction Fund (ERF), grants, and subsidies to support sustainable farming practices. 

However, these programs are often difficult to access for smaller operations, and many farmers argue that the financial assistance provided is insufficient to cover the substantial compliance costs.

Challenges with ERF

• Strict conditions: Farmers must meet specific criteria and demonstrate significant emissions reductions to access funding.
• Complicated application process: The application process for the ERF is time-consuming and complex, which is a barrier for smaller operations without dedicated administrative resources.
• Limited accessibility: Smaller farms often find themselves excluded from the benefits of these programs, which are geared more towards larger businesses.

Strategies for Farmers to Prepare and Adapt

While the new regulations present significant challenges, farmers can take steps to prepare and adapt. Taking proactive measures now can help mitigate financial strain and ensure future compliance:

Key Steps for Farmers:

1. Assess Business Readiness: Review your operation to determine if it meets the required thresholds for emissions reporting.
2. Reduce Methane Emissions: Implement methane-reducing feed options and adopt better herd management practices.
3. Improve Energy Efficiency: Switch to cleaner, more efficient energy sources for your farm’s operations.
4. Collaborate and Share Knowledge: Join industry groups or cooperatives to share resources and solutions for emissions management.

Toward Fairness: Bridging the Gap Between Farming and Mining

To achieve true environmental fairness, Australia must create a regulatory framework that holds both farmers and miners equally accountable. This can be achieved by:

1. Extend Scope 3 reporting requirements to mining operations: To ensure mining companies are held to the same standards as farmers, they should be required to report Scope 3 emissions across their entire supply chains.
2. Provide more accessible financial support for smaller farming operations: Offer grants, subsidies, and incentives to help them manage the financial burden of compliance with emissions regulations, ensuring they are not disproportionately impacted.
3. Encourage cross-sector collaboration: Facilitate cooperation between farmers, miners, and the government to develop effective policies that promote sustainable growth and ensure fairness across industries.
4. The Future of Australian Cattle Farming

Australia’s goal to become a carbon-neutral beef producer by 2030 presents both challenges and opportunities for the cattle farming industry. The push for emissions reporting is a crucial step towards sustainability, encouraging farmers to adopt practices that reduce their environmental impact. 

While the path to carbon neutrality may seem daunting, farms that embrace these changes could benefit from new market opportunities, particularly as consumers become more aware of the environmental impact of their food choices. 

As global demand for sustainable beef grows, farmers who demonstrate their commitment to sustainability may gain a significant competitive edge. This evolution in the industry could not only enhance profitability but also position Australian beef as a premium product in an increasingly eco-conscious market.

A Call for Balanced Sustainability

The introduction of emissions reporting for cattle farms is an essential step towards a more sustainable future. However, the new laws place a significant burden on family-run cattle businesses that may struggle to comply.

A more balanced regulatory framework is needed, one that holds all industries, including mining, to the same standards.

At Carnivore Society, we advocate for fairness in environmental policies and are committed to supporting sustainable practices in all sectors of the agricultural industry. What do you think about the new emissions laws? Are they fair to farmers, or is there room for improvement? Let us know your thoughts,  we’d love to hear from you!