Federated Farmers president, Don Nicolson says farmers are unhappy with the Emissions Trading Scheme because it is going to cost them more, and there are too many unknowns about it.
Mr Nicolson was amongst local and international speakers at the third Annual Emissions Trading and Policy Summit in Wellington on Tuesday.
He says an average farm will have to pay up to $5000 in new carbon charges this year, separate from the animal emission charges which kick in by 2015.
Mr Nicolson says New Zealand is the only country in the world that has put all gases and sectors into one ETS scheme.
Mr Nicolson says the scheme will penalise farmers, and they remain cynical about it.