Washington, D.C.—“Agriculture is in key position to reduce greenhouse gasses (GHG) AND generate new income as the Senate Agriculture Committee begins work on the climate change legislation,” says Jimmy Daukas, Managing Director of American Farmland Trust’s (AFT) Agriculture & Environment initiative. “Contrary to much of the recent press coverage, two new studies from well-respected agriculture researchers conclude that increases in production costs as a result of this legislation for the typical Iowa or Missouri farmer range from one to four percent by 2020 and from two to four percent by 2030.  That’s less than inflation. And, less than the energy price swings we’ve seen in recent years.”

In addition, Daukas adds, “when producers consider the income they can generate from trading carbon credits in an offset market and generating electricity through biomass, biogas, solar, wind, etc., this legislation, if designed properly, could be a net positive to their bottom lines.”

“We look forward to tomorrow’s Senate Agriculture Committee hearing. We expect USDA’s economic analysis will confirm the modest production cost increases. In addition, we hope that the Department analysis includes the potential income to agriculture from producing offsets and clean energy so we have a complete picture of the economic impact on our nation’s farmers and ranchers,” Daukas said.

“American Farmland Trust strongly believes that crafting a legislative solution that includes a strong offset market that creates incentives for farmers and ranchers to reduce greenhouse gas emissions and produce clean energy is far preferable than the alternative, given the Supreme Court mandate that EPA regulate greenhouse gasses under the Clean Air Act. I imagine almost every farmer and rancher in the country would agree with that,” says Daukas.

 “This legislation has the ability to create clean energy jobs, reduce our dependence on foreign oil significantly increase the number of acres of farmland under conservation and stewardship practices, and increase economic opportunities for farmers and ranchers—that’s a bill that’s good for the country, good for farmers and good for the environment,” concludes Daukas. 

*****Note to editors: Citations for the two new research studies follow:

Bruce A. Babcock, “Costs and Benefits to Agriculture from Climate Change Policy” Center for Agricultural and Rural Development, Iowa Ag Review, Summer 2009, Vol. 15 No. 3. Found at: http://www.card.iastate.edu/iowa_ag_review/summer_09/article1.aspx

“The Effects of Higher Energy Prices from H.R. 2454 on Missouri Crop Production Costs” Food and Agricultural Policy Research Institute (FAPRI) University of Missouri. FAPRI-MU Report #05-09, July 2009. Found at: http://www.fapri.missouri.edu/outreach/publications/2009/FAPRI_MU_Report_05_09.pdf

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