Yankee Press And Dakotan: Climate Legislation Divides Ag Sector

News Article

Lisa Hare

The House Energy and Commerce Committee recently passed climate change legislation that will set a national limit on greenhouse gas (GHG) emissions and create a cap and trade system that will enable the sale of "carbon credits."

Though the agriculture industry is not included as a "capped sector," several farm organizations and farm-state representatives are opposing the bill, fearing other factors may harm ag producers and rural economies.

"As it becomes clearer the extent of damage this bill will cause to agriculture without providing any benefits, more and more farm groups are writing to encourage their members of Congress to oppose this bill," said Rep. Frank Lucas (R-Okla.), the ranking Republican member on the House Ag Committee, in a press release.

"Cap and trade is nothing more than a national energy tax," he added.
But other farm organization leaders contend the proposed legislation provides a step in the right direction toward controlling emissions and reducing reliance on fossil fuels, and that agriculture can play a vital role in both.

"This legislation is a significant step forward toward curbing GHG emissions across the country, and now creates real momentum for passage of a climate change bill in this Congress," said Jimmy Daukas, managing director of American Farmland Trust's Agriculture and Environment initiative.

Daukas said that U.S. agriculture could help reduce GHG emissions by adopting new practices and technologies.

"This is an enormous opportunity for our ag sector," he said.

Two key areas Daukas cited were selling carbon credits and selling low-carbon renewable fuels.

"These are areas where climate legislation will benefit agriculture, creating additional revenues in that sector," he said.

But In a letter to members of the House Energy and Commerce Committee, American Farm Bureau president Bob Stallman said that while the bill does not include agriculture under the greenhouse gas cap provisions, in other respects, the bill fails to include key principles critical to U.S. agriculture.

"We have consistently advocated that any cap-and-trade bill must: recognize and support the benefits agriculture can provide; make economic sense for agriculture; provide for a strong leadership role for USDA; and base any carbon sequestration program on sound science," Stallman said.

He added that some sectors of the economy were accommodated as the legislation was crafted, yet the bill ignores the complex needs of agriculture.

"The (bill) is laden with so many policy prescriptions that its impact on the U.S. is almost impossible to measure and evaluate," he said. "We can be certain of some things, however - it will increase our operating costs and reduce our competitiveness abroad."

According to Stallman, the measure does not adequately provide for alternative sources of energy that will "plug the hole" created when fossil fuel costs escalate dramatically. Farm Bureau is also concerned about the potential impact on fertilizer prices.

"The effects will be far reaching to businesses, consumers, and even more so to farmers and ranchers," Lucas said. "Whether it's the fuel in the tractor, the fertilizer for the crops, or the delivery of food to the grocery store, agriculture uses a great deal of energy throughout production."

"There are a number of (farm) groups who are not supporting climate change legislation," Daukas said. "They're focused on energy prices going up. But there are other farm organizations who are willing to engage and be involved in making the bill better."

Nebraska Farmers Union president John Hansen said climate change legislation is going to happen, and it's better for agriculture to play an active role in defining its role in the impending changes.

"We can't not be involved," he said. "Doing nothing is not an option."

Lucas added that it is imperative that Congress conduct hearings and study the implications for agriculture carefully. "There is too much at stake to simply rush a national energy tax through Congress," Lucas said.

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