Debate over the likely cost of the emissions trading scheme continues to rage.

Federated Farmers says the cost for the sheep and beef sector alone would consume the profit from more than 4.5 million lambs.

Using the Minister of Agriculture's figures, it estimates that once the ETS is introduced in July, it will cost sheep and beef farmers almost $43 million dollars, or more than $1400 dollars a farm.

Federated Farmers president Don Nicolson says that would amount to almost 4% of the average pre-tax profit for sheep and beef farms and he estimates the ETS will cost the economy more than $500 million in the first year.

Meantime, The Ministry for the Environment has advised the Government not to soften or delay the Emissions Trading Scheme, despite concerns raised by business.

The Government is under pressure from the farming and business lobbies to reduce the costs of emissions trading, or abandon the scheme altogether.

Environment Minister Nick Smith says that under the Kyoto Protocol, there is a cost to New Zealand for emissions.

He says it is better that the cost falls on the emitters, who can do something about the amount they emit, rather than have taxpayers pick up the bill.