Australia's agricultural output will be relatively unaffected if the federal government decides to include the sector in its emissions trading scheme (ETS), a research economist says.
While concerns have been raised the sector will be unable to compete on the global market with countries not subject to an ETS, Australian Bureau of Agricultural and Resource Economics (ABARE) research economist Catherine Tulloh says this is not the case.
"Our longer-term analysis that we've done shows that Australia's export competitiveness is maintained even with the climate change policy," she said.
"Increasing (input) costs that we are looking at in the first year of the scheme are less than 0.1 per cent, so that is pretty small especially when you look at the recent price changes not driven by climate change policy."
Ms Tulloh said the federal government was expected to decide whether the agricultural sector would be included in the scheme in 2013, which could see the sector competing to purchase carbon emissions permits as early as 2015.
Agriculture was the second-largest emitting sector in Australia, she told the ABARE regional outlook conference in Darwin on Wednesday.
"Beef and sheep meat are obviously very emissions-intensive production systems," Ms Tulloh told AAP.
"Proposed government policy is looking at transitional assistance measures to make sure emission-intensive trade-exposed industries are protected while other countries aren't taking action (against climate change), but really we are waiting on policy certainty."
Northern Territory Minister for Primary Industries, Fisheries and Resources Kon Vatskalis said the federal government needed to find a way to reduce Australia's carbon emissions without killing industries vital to the Australian economy.
"Especially when they are competing with other countries, who are not subject to a carbon-trading scheme - I am very pleased to see the federal government is considering some of the amendments the opposition has put," he told AAP.
Amendments to the legislation moved by Opposition Leader Malcolm Turnbull last month would create a level playing field for emissions-intensive trade-exposed industries, exclude agriculture from the scheme, moderate higher electricity price rises for small businesses and give bigger breaks to the coal industry and electricity generators.
The Northern Australia conference on Wednesday also heard how climate change was expected to bring more rain to the top end, a greater number of agricultural pests and diseases, and a rise in temperature - all of which are expected to impact greatly on the region's $1.57 billion beef cattle and $552 million fruit and vegetable industries.
