The government said that the farm levy would help farmers recover the cost of the tax by charging higher prices for climate-friendly products.

If approved, the tax would be introduced in 2025, Aljazeera reports.

However, farmers have criticised the proposal, with industry lobby group Federated Farmers alleging the tax would “rip the guts out of small-town New Zealand”.

Prime Minister Jacinda Ardern told reporters the proposal would make New Zealand’s farmers not only the best in the world but the best for the world.