A $1.3 billion economic black hole will be created in Queensland if cane farmers are forced to abide by draconian reef regulations, a new report shows.
Canegrowers commissioned the report which shows forcing cane growers to cut nitrogen applications to sugarcane crops up to 30 per cent below best practice levels would cost the economy $1.3 billion over 10 years.
Canegrowers chairman and Mackay grower Paul Schembri said growers were reducing the risk to Great Barrier Reef water quality from runoff and had adopted a scientifically-based industry program, Six Easy Steps (6ES) to analyse soil and crop needs and determine optimal fertiliser rates for productivity.
He said Canegrowers used a large dataset derived from field trials of crop fertiliser responses to assess what would happen at different rates of nitrogen application.
The economic impact was then analysed.
"The impact of a 30 per cent reduction on the 6ES nitrogen rate was significant and dire for cane farms," Mr Schembri said.
"The ramped-up reef regulations implemented last year are based on an intent to push growers to this level.
"These regulations are based on the lie that such a cut would not hurt the industry - our analysis shows this is clearly false."
The analysis showed a 30 per cent reduction in nitrogen use would have dire consequences for the industry and lead to:
- A drop in crop production of 5 - 7.5 tonnes of sugarcane per hectare per year
- An annual loss of 2.3 million tonnes of sugarcane across the Queensland industry
- A loss of $110 million in earnings per year for cane growers and sugar millers
- Processing capacity equivalent to two sugar mills becoming redundant
"We are alarmed by the zealous campaign within government agencies and programs to drive nitrogen use below these guidelines without recognising the huge economic risk to growers and the regional economies that rely on them," Mr Schembri said.
"This is happening without any direct evidence that dissolved nitrogen from farms is having any effect on corals in inshore areas which see catchment flows.
"The importance of nitrogen in water for coral on the reef has been greatly exaggerated by governments.
"Scientists tell us that the main stressors on the reef are climate change and extreme weather events - this is where governments need to be focussing their attention."
Mr Schembri said it was time to put the brakes on the regulatory juggernaut and the false assumptions on which it is based.
"This anti-industry dogma is posing a real risk to the livelihoods of the thousands of people who work in the sugarcane industry and to the Queensland state economy.
"The industry cannot survive if this unfounded push to reduce nitrogen use below optimal levels continues."
Mr Schembri said the sugarcane industry would continue to do its bit for water quality through testing and adopting cost-effective ways of improving the efficiency of fertiliser use.
"As sugarcane growers we have been cooperating with and involved in reef water quality efforts for 20 years," he said.
"Canegrowers is now leading on-farm trials of new fertiliser formulations that could further reduce losses and through our Smartcane BMP program, growers are showing they have improved their methods and timing of fertiliser application."
The report, prepared by Canegrowers with economic modelling conducted by Queensland Economic Advocacy Services and Adept Economics, was released ahead of a Senate inquiry into reef regulations being held in Brisbane this week.
Mr Schembri said Canegrowers would be asking it to recommend a thorough review of the way scientific research on Great Barrier Reef water quality is managed, scrutinised and used to justify government policies.
