Schumer Initiative To Stop 'Cow Tax,' Included In Must Pass Interior Appropriations Bill - Puts Nail In Coffin Of Inane Proposal That Could Cost NYS Farmers An Estimated $120 Million

Press Release

Bill Will End Farmers' Fears About Potential for EPA to Regulate Greenhouse Gas Through Fees of an Estimated $175 per Dairy Cow or $87.50 per Beef Cow for Farm Animals' Emissions

Financial Impact Would Be Devastating To The Thousands Of Family-Owned Dairy And Livestock Producers In Upstate New York

U.S. Senator Charles E. Schumer today announced that a version of his bill that will prevent the government from imposing an onerous "cow tax" on farmers across New York State has been included in the final version of the must pass Interior Appropriations bill, guaranteeing that the provision will be signed into law. Late last year, the Environmental Protection Agency (EPA) discussed regulating greenhouse gases in its Advanced Notice of Proposed Rulemaking under the 1990 amendments to the Clean Air Act, which could include requiring family farms to purchase expensive permits for each cow owned. Although the EPA did not propose moving forward with the permits, Schumer took preventive action to protect New York's small family farms. The "tax" would have cost New York State farmers an estimated $120 million -- or $175 per dairy cow and $87.50 per beef cow -- fees that could put already struggling family farms over the edge and into bankruptcy.

In a move to alleviate farmers' fears and ensure that such a proposal is never implemented, Schumer introduced legislation to prevent the EPA from imposing this fee on farmers. Today Schumer announced that the committee combining the House and Senate version of the Interior Appropriations bill as included a version of that legislation in the final version of this must pass appropriation bill.

"Times are hard for families across New York State, and they are particularly hard for our farmers. The idea of imposing a cow tax on our farmers and adding one more crushing burden is absurd," Schumer said. "We can all be glad that this bill will prevent this inane "cow tax" and save our family farms millions of dollars a year."

In 2007, the Supreme Court ruled in Massachusetts, et al v EPA that the EPA cannot categorically refuse to regulate greenhouse-gas emissions under the Clean Air Act, a law that defines EPA's responsibilities for protecting and improving the nation's air quality. On July 30, 2008, in response to this, the EPA began to consider the implications of defining greenhouse gases as an air pollutant by issuing an Advance Notice of Proposed Rulemaking. This is typically a precursor to a proposed rule and the first in several steps in creating a new regulation. As a part of this process, the U.S. Department of Agriculture (USDA) responded to the Notice with a comment that defining greenhouse gases as air pollution may require the EPA to issue permits to farmers for their livestock.

The USDA indicated that if the EPA chose to move forward with regulating farm animals and requiring permits for emitters of methane, farms with more than 25 dairy cows or 50 beef cattle would need to purchase permits for each ton of methane their animals emitted. The American Farm Bureau Federation, assuming a price of approximately $45 per ton, calculated that this would cost $175 per dairy cow or $87.50 per beef cow. This regulation would cost a medium sized dairy farm with 75 to 125 cows between $13,000 and $22,000 a year. It would cost a medium size cattle farm with 200 to 300 cows between $17,000 and $27,000.

If enacted, these permits would be devastating to American's family farms and could push them into bankruptcy. Beef and dairy products are part of a highly competitive global market, meaning American farmers cannot significantly raise prices when the cost of doing business in the United States rises. If forced to pay a "cow tax" or other additional fees, New York's family farms could face a competitive disadvantage, which could close farms and lead to more imported food products.

New York is the nation's third leading milk producer in the nation with 6,400 dairy farms producing approximately 12 billion pounds of milk each year.

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