Agriculture Producers Seek Offset Program in Senate Climate Bill

On September 9, the Senate Committee on Agriculture, Nutrition & Forestry held a full committee hearing to address the future regulation of carbon markets in a cap and trade system such as that proposed in the House-passed American Clean Energy and Security Act of 2009 (H.R. 2454) . Among the panelists invited to testify were representatives of various agricultural producer groups.

Panelists and Senators alike expressed concerns that climate change legislation would increase the input costs for agricultural producers. Fred Yoder , past president of the National Corn Growers Association (NCGA), stated that agriculture should not be regulated under the emissions cap. He supported establishing an agricultural offsets program under a cap and trade system as a way both to boost farm income and reduce the overall cost of the cap and trade program to consumers, but argued against setting an upper limit on the amount of domestic offsets allowed. The U.S. Department of Agriculture, he said, is in the best position to lead the implementation of such a program (as opposed to the Environmental Protection Agency), but it would need to be given adequate flexibility to adjust the program as new agricultural offset technologies become available.

Frank Rehermann , chairman of the USA Rice Producer’s Group, stated that the U.S. rice industry does not support the House climate bill because many believe it will lead to increased fuel, electricity, fertilizer, natural gas and propane prices. Rehermann said that the proposed legislation would put the U.S. rice industry at a clear disadvantage on the global market and that it would threaten the nation’s food security. When asked by Committee Chairman, Tom Harkin (D-IA), if there were viable offset practices for rice producers, Rehermann replied that the rice industry’s primary opportunities for offsets would be based on increasing carbon sequestration in soils.

Andy Beckstoffer , chairman and CEO of Beckstoffer Vineyards in Rutherford, California, said wine producers are already facing the impacts and costs of climate change. For many years wine producers have been using practices that reduce greenhouse gas emissions and store carbon. Much of the land in Napa Valley has been set aside for conservation. He hopes these early actors will be recognized and rewarded for their past efforts.

The Senate Environment and Public Works (EPW) Committee is expected to mark up climate legislation later this fall, with input from other committees. The House-passed climate bill is being used as a starting point for Senate consideration. The new chair of the Agriculture Committee, Sen. Blanche Lincoln (D-AR), is not planning to hold a separate mark up on climate legislation, but instead will confer with the EPW Committee as the legislation is drafted.