The Government's move to scrap agriculture from the Emissions Trading Scheme has been welcomed by rural leaders.

The newly-scrapped scheme would see farmers charged for additional emissions units used above their allotted allowance by 2025.

Agriculture Minister Todd McClay says the Government needed to focus on 'practical tools' that wouldn't reduce production or exports for Kiwi farmers.

Federated Farmers president Wayne Langford approves of this choice - but claims there's still significant work to be done. 

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