Climate Bill Will Have Different Consequences for Different Ag Areas and Industries
Senators want breakdown of cap-and-trade costs.
Compiled by staff
Published: Jul 16, 2009
Senators Mike Johanns, R-Neb., and Senate Ag Committee Ranking Member Saxby Chambliss, R-Ga., have asked Secretary of Agriculture Tom Vilsack to come up with an analysis of the cost of the American Clean Energy and Security Act of 2009 for agricultural producers. Johanns wants to see the analysis organized by commodity and by state. He says the USDA analysis is important because cap-and-trade will have tremendously different consequences for different agricultural industries and different regions of the country.
Chambliss sent similar letters to Environmental Protection Agency Administrator Lisa Jackson and USDA Chief Economist Dr. Joseph Glauber, requesting an economic analysis of the legislation. He says understanding the costs producers, consumers and others will bear as a result of H.R. 2454 is very important as the Senate takes up the legislation.
Johanns says the Department knows that cap-and-trade will increase agriculture production costs, but asserts that the opportunities will outweigh these costs. The Senator hopes this assessment is based on sound economic analysis and not just rhetoric.
According to an analysis conducted by the highly respected Food and Agricultural Policy Research Institute, the House cap-and-trade bill could increase the input costs of a typical Midwestern farm by tens of thousands of dollars annually. The next Senate hearing is next Wednesday.
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Tagged: usda, farm, Environmental Protection Agency, input costs
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