USDA Says Climate Bill an Income Boost for Farmers

On July 22, the U. S. Department of Agriculture (USDA) found that farmers could earn more from carbon credits than they would pay in costs under climate legislation recently passed in the House of Representatives. Most of the revenue would come from planting trees and preserving woodlands, in addition to increased revenue from the sale of biofuels, the USDA found. “In the short term, the economic benefits to agriculture from cap and trade legislation will likely outweigh the costs,” said Secretary of Agriculture Tom Vilsack. “In the long term, the economic benefits from offsets markets easily trump increased input costs from cap and trade legislation.” Vilsack added that trees will most likely be planted on marginal cropland or on land that is already in the conservation program, and that trees are not likely to displace land devoted to crops.

Senate Agriculture Chairman Tom Harkin (D-IA) expressed concern that the carbon credit program would only benefit forest owners, not row-crop farmers. The American Farm Bureau Federation said that climate legislation will increase the costs of pesticides, fuel, and fertilizer for farmers. “With good reason, we hear a lot of concern expressed about projected costs to consumers, farmers, ranchers and other businesses from proposed energy and global warming legislation,” Harkin said. “I share those concerns, and that is why I believe we must do our best to analyze costs to find the most economical, common-sense ways to achieve critically important results of energy independence and reduction of greenhouse gas emissions.”

For additional information see: Reuters , NY Times , AP

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