Tuesday, July 7, 2009

Johanns Says Farmers Deserve Answers On Cost Of Cap And Trade

July 7, 2009 Senator Mike Johanns today called for a Senate Agriculture Committee hearing to discuss the cost of cap-and-trade legislation for American farmers and ranchers. Johanns' request came after U.S. Agriculture Secretary Tom Vilsack testified before the Senate Environment and Public Works Committee on the subject and provided no information about or estimate of the bill's impact on input costs for agricultural producers. "Nebraska farmers and ranchers, along with those across the country, are rightly concerned about how the House cap and trade bill will impact them," Johanns said. "Secretary Vilsack should provide the Senate and America's farmers with an answer to one simple question: How much more does the Department of Agriculture estimate America's agricultural producers will pay under the House bill? The Administration has wholeheartedly endorsed the House bill, while farm group after farm group has opposed the legislation. I'm mystified at how the Secretary can serve his primary mission of supporting U.S. agriculture if he does not know the impact of the bill he supports on the very producers he has taken an oath to serve." Senator Johanns wrote a letter today (below) to Senator Tom Harkin (D-IA), Chairman of the Senate Agriculture Committee, and Senator Saxby Chambliss, (R-GA), ranking Republican on the committee. The letter requests that the committee investigate and analyze the economic impact of cap-and-trade legislation on American farmers and ranchers. Fast Facts On Cap-and-trade legislation: -According to a study published by The Fertilizer Institute on previous cap-and-trade proposals, the legislation would add between $6-12 billion to total farm production costs. -An increase in production costs of corn is estimated to be between $40-78 per acre by 2020. -Production costs of soybeans are estimated to increase by $11-20 per acre in the same time period. -Production costs of wheat are estimated to increase by $16-32 per acre in the same time period. -Numerous agricultural associations are opposed to the House-passed bill.

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