Denmark is an agricultural country, and we have been for a long time. If we are to continue to be so in the future, it is important that agriculture adjusts itself in such a way that food production takes place within both the planetary boundaries and taking into account local natural areas and environmental impact. At the same time, there is a need for rapid change if we are to achieve our climate goals. A climate tax on agriculture is an effective tool to ensure this.

The best tax model is a high, uniform climate tax on agricultural production with a built-in floor deduction for parts of the profession. The tax on production is combined with a consumption tax on the most climate-damaging goods, which partly shifts consumption so that the transition in agriculture is supported and partly reduces the competitive advantage that will be for imported goods as a result of a tax on production in Denmark.

We propose this fee model:

• A high uniform C02e tax on production.

• A production-dependent base deduction for particularly leak-prone parts of the business.

• A consumption tax imposed on the most climate-damaging goods – meat, cheese and butter.

It is important that a tax primarily promotes a structural change in agriculture, but technology also plays a role.