The following information is a portion of a keynote speech delivered by Senator Mike Johanns to the American Enterprise Institute in Washington, DC. His speech discussed the need to support agriculture, and his remarks included the impact that climate change/cap & trade legislation will have on farmers.
Read on below. A link to the entire keynote speech follows at the bottom of this blog entry if you would like to read it in its entirety.
From Johanns:
American agriculture can continue to feed the world, and our farmers will continue to care for the land, as long as we don't erect roadblocks every step of the way.
"This includes policies that would make their jobs more difficult. By far, the most glaring example of such a policy is Cap-and-Trade. There has been much discussion in both houses of Congress about potential new legislation and regulations relating to climate change. Any cap-and-trade law would have sweeping consequences that touch every corner of American life. There are various studies floating around about its potential impact.
"Recently, a study by Texas A&M University revealed several shortcomings of the House Cap-and-Trade bill that passed in June. The study, which analyzed a sampling of representative farms across the country, showed that 71 of those 98 representative farms would lose money as a result of cap and trade. So, based on this example, three out of every four farms lose at best.
"While the study did show some net-gainers in agriculture, it indicated that the benefits are largely the result of higher grain prices, not because of lucrative carbon payments. These higher grain prices translate into higher costs for the livestock sector. Not only do costs go up, but acres also come out of production under cap-and-trade programs. So, as supply decreases, we could also see higher food prices.
"The Senate cap-and-trade bill is even more radical than the House bill. It will lead to higher taxes, higher energy costs, a tighter squeeze on disposable income, more lost jobs and lower standards of living. Regardless of the approach, the bottom line is, the cost of doing business goes up, and supply goes down.
"What's more, EPA Administrator Lisa Jackson has openly admitted that U.S. action alone will have little, if any, effect on our climate. And we would clearly be acting alone - the U.S. cannot force China and India to adopt a Cap-and-Trade regime. So basically, we would be raising energy prices for every American family and business with no significant impact on the global climate.
"And agriculture gets hit the hardest. A farm family's pocket book can only stretch so far, and with costs of production already on the rise, this proposal could put family farms at risk of going under. There is no way around that. If Cap-and-Trade passes, some of our farmers and ranchers - the people who feed the world - will be put out of business.
"Some farms that have been in a family for four, five, and six generations will have to shut down their operations. That means production goes down and people lose jobs. And I will also tell you, once you put something like this in place, it is hard to unwind. That is why I have been very vocal about my concerns.
"During the budget debate, I asked the Senate to vote twice to ensure that cap-and-trade legislation is not slipped into law using budget maneuvers - once on an amendment and once on instructing conferees. Both passed with overwhelming, bipartisan support - almost 70 percent of the U.S. Senate.
"Recognizing the need for further debate, I have twice sent letters to the Senate Agriculture Committee, on which I serve, requesting hearings on this issue. I was pleased when a hearing was held in July, and another took place in September. I was also very pleased when new Agriculture Committee Chair Blanche Lincoln said last week that she intends to hold a mark-up of the Cap-and-Trade bill.
"That's something I have long advocated for, and it will be a critical piece to making sure agriculture's voice is heard during this debate. Cap and trade legislation will touch industries across the spectrum in America, and quite frankly will increase costs for many of them. As government officials, we have a responsibility to seek a full understanding of the impact of any legislation we pass. This is especially true during trying economic times.
"I will continue to seek more analysis, and call for more hearings to reveal in full the increases in input costs that would result from cap and trade. The House rushed and passed a bad bill. Hopefully, the Senate will be more thoughtful in its approach and take the time necessary to understand the consequences. "I would offer a couple thoughts in conclusion. Agriculture is getting hit from all sides, yet it seems like few people are taking the time to step back and look at the facts. Pesticides and fertilizers help protect the crop and increase production, thereby feeding the world. A massive shift to lower-yielding organic production would have severe consequences. Organics simply cannot feed the world.
"Cap-and-Trade would shift an estimated 20 percent of our productive farmland to trees. Again dramatically reducing supply while providing no benefit. What you are doing today is incredibly important, and if I can leave you with one message, it's this: stay informed and engaged.
"There is a lot of misinformation out there, and that becomes a serious concern when you realize some of these policies mean people will lose jobs and others will go hungry. It's that simple, but it doesn't seem to be sinking-in with the White House or some of the leadership in Congress. I will continue speaking up for the American farmer and rancher, and I hope you will as well."
If you would like to share your thoughts with Senator Johanns or Senator Ben Nelson on the climate change bill, you may do so here.
If you would like to read Johann's full set of keynote speech highlights, you may do so here.
Tuesday, October 13, 2009
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