Climate Change

Issue:
There is concern in the scientific community that human activities are contributing to an increase in average global temperatures and adverse changes in the world’s climate and weather. Although the scientific body of the United Nations says that human activities appear to have a measurable effect on global temperatures, there is no consensus on the exact impact of these activities or how to address the policy issues in a fair, effective manner.

U.S. agriculture is poised to play a unique role in the climate debate. A cap on greenhouse gas (GHG) emissions would increase fuel, fertilizer and utility costs to farmers, and it could possibly lead to regulation of production methods and practices – a possible outcome which raises significant concerns. At the same time, agriculture could also benefit from such a regime, with opportunities for producers to voluntarily mitigate GHG emissions through carbon sequestration in soils and methane and fertilizer management. The extent of that benefit would depend on many details associated with cap-and-trade proposals, mitigation requirements and credit markets that are yet to be worked out. Under cap and-trade proposals, producers would be paid for these voluntary mitigation measures by carbon-emitting industries. Some farmers are currently trading carbon credits on the Chicago Climate Exchange, and one state Farm Bureau has played a role in developing the agricultural carbon market in the U.S. The forestry industry can also participate in carbon capture through tree-planting programs. American agriculture will continue to contribute to GHG emissions reductions through biofuels production, thus offering a clean supply of domestically produced energy.

Legislative Status:
Cap-and-trade proposals were the subject of many hearings in Congress in 2007, and interest will continue in 2008. The Lieberman-Warner bill (S. 2191), which passed the Senate Environment and Public Works Committee, will likely be the focus of continued debate and analysis and could be considered by the full Senate in 2008. The bill would implement a cap-and-trade policy that would include agricultural offsets. While the administration has acknowledged the issue, it appears unlikely that legislation will be enacted that would severely undercut the U.S. economy, especially in an election year.

Farm Bureau Policy:
Farm Bureau supports climate discussions that could lead to development of a practical, voluntary carbon-trading system that includes access to the carbon market for agriculture and carbon sequestration for forestry. We oppose mandatory restrictions on agriculture including mandatory methane restrictions under the Clean Air Act and restrictions on farming practices and farm machinery. We also oppose a carbon tax. We support additional funding for the USDA for carbon program implementation and agricultural sequestration research.