Senate Ag Hears Cap And Trade Concerns

One of Sen. Tom Harkin’s last acts as chairman of the Senate Agriculture Committee on was to preside over a Sept. 9 hearing on cap and trade and its effects on agriculture. Harkin (D-IA) expressed concerns about the structure of a cap and trade marketing system. “Markets that aren’t properly and carefully regulated will blow up and the economy and environmental goals of the program will blow up with it,” Harkin said.

Prior to hearing testimony from producers of corn and soybeans, dairy, rice, and grapes, ranking Republican Member Sen. Saxby Chambliss (R-GA) noted that Texas A&M University’s Agricultural and Food Policy Center (AFPC) last week released a report illustrating the effects of the House-passed American Clean Energy and Security Act on 98 representative farms in its database.

“The study says that 71 of 98 farms will be worse off under the House cap and trade plan, even in the early years of the program. Most concerning, the 27 farms that benefit do so only because other producers go out of business,” Chambliss said. “Not one rice farm or cattle ranch benefits, while only one cotton operation and one dairy benefit mainly due to the fact that they both grow a significant amount of feed grains.”

Ohio farmer Fred Yoder, past president of the National Corn Growers Association, was the first to testify on the producer panel. He raised concerns about language in the House bill that would penalize early actors who commenced no-till or other conservation practices earlier than 2001 and would be prohibited from participating in a carbon market. He also drew attention to an important provision in the bill related to the Renewable Fuels Standards that prohibits EPA from considering indirect land use change when conducting their life cycle analysis for corn based ethanol until a peer reviewed study can be conducted to verify the scientific accuracy of the current modeling. “The language in the House bill is a step in the right direction towards sound science a more rational life cycle analysis. We would urge the Senate to include the same provision in its version of the climate bill,” Yoder said.

Among those offering testimony on the subject of regulating carbon markets was David Miller, Iowa farmer and chief science officer for AgraGate Climate Credits Corp., a company affiliated with Iowa Farm Bureau. Miller gave his input on ways to structure and streamline the carbon credit program so that it would be an incentive to farmers and benefit the soil. “Market transparency is critical to the smooth operation of a carbon market, so that prices are publicly reported and readily available,” he told the committee.

He also indicated that right now offsets are valued differently for soil, forestry, or methane and value can even vary according to geographic location. “All these variances increase the transaction of costs associated with marketing carbon offsets,” Miller said. “The end brings fewer returns to the farmer or rancher hoping to enroll. That’s no incentive.”

This was the second hearing on the climate change bill in the Senate Agriculture committee and may not be the last. New Committee Chair Sen. Blanche Lincoln (R-AR) voiced concerns about passing cap-and-trade legislation at all this year. “If we do move forward, the regulation of carbon markets is something we need to get right,” said Lincoln.

(Source: ZimmComm New Media)

Leave a Reply

Legislation Stories

FertilizerTFI Weighs In On Fertilizer Rail Transport Bill
May 14, 2015
With today’s House Committee on Transportation and Infrastructure as a backdrop, The Fertilizer Institute (TFI) registered its support for policies Read More
LegislationGov. Kasich Signs Ohio Bill For Lake Erie Water Quality
April 2, 2015
Gov. John Kasich has signed a bill aimed at protecting Lake Erie and Ohio’s water quality, reports editorial staff at Read More
Lake Erie Nutrient Stewardship
LegislationOhio Lawmakers Finalize Phosphorus Restrictions
March 25, 2015
State lawmakers on Wednesday finalized new rules designed to curb toxic algal blooms on Lake Erie, calling the regulations a major step forward in addressing the problem. Read More
Crop Protection Bulk Storage
LegislationARA: Chemical Security, Biotech Labeling Among Key Issues In 2015
February 12, 2015
The Agricultural Retailers Association is hopeful Beltway gridlock will lessen in 2015, allowing some key agricultural initiatives to gain legislative ground. Read More
Top 100 Articles
CropLife 100Allied Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
CropLife 100Pinnacle Purchases California-Based Specialty Crops Retailer
July 20, 2015
Pinnacle Agriculture Holdings has successfully acquired California-based NH3 Service Co.  Operating as part of Pinnacle’s Performance Agriculture brand, the new locations Read More
Asmus Farm Supply liquid fertilizer facility features 20,000 square feet
CropLife 100Slideshow: Asmus Farm Supply Shows Off Its New Liquid Fertilizer Facility
July 15, 2015
Asmus Farm Supply, Rake, IA, recently added a new liquid fertilizer facility to its company operations. The new liquid fertilizer Read More
CropLife 100Wilbur-Ellis Feed Division Facilities Receive Safe Feed/Safe Food Certification
July 13, 2015
Wilbur-Ellis Co.’s Feed Division, a marketer and distributor of value-added feed ingredients for the aquaculture, livestock and pet food industries Read More
CropLife 100BRANDT Expands To Brazil With Acquisition
July 8, 2015
BRANDT has acquired a majority interest in Target Brasil Fertilizantes Ltda. through its Brazilian subsidiary. Target Brasil manufactures, distributes and Read More
Milan Kucerak, president/CEO, West Central
CropLife 100West Central Cooperative And Its New President Are A Match Made In Deviation
June 29, 2015
To appreciate just how unique West Central Cooperative is in the world of ag retail, an observer need only consider Read More
Latest News
CropLife 100Allied Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
FungicidesReport: Sudden Death Syndrome Symptoms Appearing In Soy…
July 30, 2015
Last week, symptoms of sudden death syndrome (SDS) began to appear in April 15-planted soybeans at the University of Illinois’s Read More
Seed/BiotechAdvanta Seeds Adds New Phoenix Corn Hybrids
July 30, 2015
Corn growers in the High Plains and Western states have new options available for the 2016 growing season from Advanta Read More
ManagementTechnology and agriculture: a Futurist’s Perspective
July 30, 2015
Futurist David Zach, speaking at this week’s InfoAg Conference in St. Louis, shared thoughts on the benefits and limitations of Read More
Biofuels Plant in Lousiana
Industry NewsIdle Biofuels Plant In Louisiana To Reopen As Ammonia F…
July 30, 2015
A Lithuania-based company plans to spend $265 million to reopen an idle biofuels refinery in Grant Parish as an ammonia Read More
FFA at Monsanto Booth at the 2015 National Farm Machinery Show
Industry NewsFive Students Receive The 2015 Monty’s Plant Food Compa…
July 29, 2015
This fall, five college-bound students will have financial support through the Monty’s Plant Food Company FFA Scholarship. All five scholarship Read More
GYPSOIL Blendable Pellets
Crop InputsBeneficial Reuse Management Launches Pelletized Gypsum …
July 29, 2015
Beneficial Reuse Management (BRM) announced this week at Ag Media Summit that its GYPSOIL Pelletized Products Division will open a Read More
StewardshipOhio Water Quality Project To Determine How Much Phosph…
July 27, 2015
Researchers with the College of Food, Agricultural, and Environmental Sciences at The Ohio State University are looking for farmers in Read More
FertilizerKoch Agronomic Services Launches N-TEGRATION Technology
July 27, 2015
Koch Agronomic Services, LLC (KAS) has launched  N-TEGRATION Technology, a process technology platform designed to enable production of enhanced efficiency fertilizers at Read More
HerbicidesExpert: IARC Herbicide Classifications Leading To Confu…
July 24, 2015
Few people in the crop protection industry had heard of the International Agency for Research on Cancer (IARC) before this Read More
ManagementFCI Trade Summit Update & Precision Tank Turns 50
July 23, 2015
Editors Dave Frabotta and Eric Sfiligoj discuss the upcoming FCI Trade Summit in Las Vegas, NV, and how Precision Tank Read More
Palmer pigweed seedhead in cotton
HerbicidesUSDA Deregulates Dow AgroSciences’ Enlist Cotton Trait
July 23, 2015
The USDA today issued its decision deregulating Dow AgroSciences’ Enlist cotton trait in the U.S. The USDA has now completed its Read More
Industry NewsVerdesian Life Sciences Showcases Versatile Product Por…
July 23, 2015
Technology has revolutionized agriculture by bringing farmers, retailers and distributors to the forefront of the digital age. To meet the Read More
FertilizerWSJ: Cf Industries Exploring Merger With Dutch Chemical…
July 23, 2015
U.S. fertilizer maker CF Industries is in advanced merger talks with Amsterdam-listed chemical company OCI NV, the Wall Street Journal Read More
HerbicidesNufarm Releases New Panther SC Herbicide
July 23, 2015
Nufarm has announced the availability of new Panther SC herbicide. Panther SC is the first liquid formulation of flumioxazin available Read More
EquipmentFarmLink Launches Farm Equipment Sharing Program
July 23, 2015
FarmLink has introduced a new online farm equipment sharing community – MachineryLink Sharing – leveraging this new economy business model Read More
HerbicidesCould The South’s Most Troublesome Weed Represent A Thr…
July 22, 2015
Palmer amaranth is undoubtedly the most troublesome weed in the southern United States, taking a devastating toll on both cotton Read More
Industry NewsH.J. Baker Hires New Director Of International Sales
July 22, 2015
Global Agriculture firm H.J. Baker announced today that Steve Langley has joined the company’s Crop Performance Division and Animal Health Read More