Danish dairy farms are at risk of going out of business if new proposals for a farm emissions tax are introduced in Denmark.

This was according to senior agricultural specialist Torkild Birkmose of SEGES innovation, who spoke to delegates on last week’s Irish Farm Buildings Association tour to Denmark.

Late last year, proposals for a new agricultural greenhouse gas emissions tax on farmers by the Danish government were unveiled.

While details of the tax have yet to be published, there is speculation that the tax will be in excess of 750 Danish krone or €100/t of CO2e.

According to a report from the Danish Climate Council, such a tax on farming would provide a stronger incentive for farmers to transition towards crop and pork production, which emit fewer greenhouse gases compared to livestock.

However, Birkmose explained that there are real concerns that this level of tax could lead to a wave of bankruptcies among farmers, particularly higher-emitting sectors like dairy.

One organic dairy farm visited by the group, which was milking 540 cows across 2,500ac, would face a tax bill of upwards of €780,000 if implemented.