Report Projects Dramatic Drop In Farm Income
Cap and trade study released.
Compiled by staff
Published: Jun 11, 2009
The Heritage Foundation's Center for Data Analysis has released an economic study regarding the impact a cap-and-trade system would have on the agriculture community. The study maintains that cap-and-trade is an energy tax in disguise that will cause farm income to drop dramatically because of higher operating costs. It further argues that people living on fixed incomes and struggling in tough economic times can expect higher food prices as the result of this policy.
The Heritage Foundation study projects that farm income will drop $8 billion in 2012, $25 billion in 2024, and over $50 billion in 2035. Those are decreases of 28%, 60%, and 94%, respectively. The report projected an average net income loss over 25 years of $23 billion. Also, construction costs will increase 10%, gasoline costs will increase 58% and electric rates will go up 90% over the 25 year period.
"No wonder agriculture groups are increasingly coming out against the Waxman-Markey bill," said House Agriculture Committee Ranking Member Frank Lucas, R-Okla. "They know agriculture is a target. They know that cap-and-trade promises to destroy their livelihoods."
According to Lucas a bill of this magnitude deserves thoughtful consideration and debate but instead, Speaker Nancy Pelosi, D-Calif., is rushing it through Congress to the detriment of all of agriculture.
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