GOEHRING WANTS STUDY OF ECONOMIC IMPACT OF âCAP AND TRADE BILL
News Date June 08, 2009
BISMARCK – Agriculture Commissioner Doug Goehring has asked for a university study to help North Dakota farmers, ranchers and farm organizations better understand the economic impact and other possible effects of proposed federal legislation establishing a federal “cap and trade” system for greenhouse gases.
“The American Clean Energy & Security Act of 2009, also known as the Waxman-Markey Bill, could have a significant impact on North Dakota agriculture,” Goehring said. “It is imperative that North Dakota producers and the agricultural organizations that represent them clearly understand the implications of this bill.” Goehring has asked Won Koo, director of the Center for Agricultural Policy & Trade Studies at North Dakota State University, to conduct the economic impact analysis.“Dr. Koo and his team are respected researchers in the field of agricultural policy, especially the economics of agriculture,” Goehring said. “I am confident the model they create will shed more light on the economic impact to production agriculture and its supporting industries.”
Goehring said several national agricultural organizations are carefully monitoring this legislation and have developed a list of principles that they feel must be included in order to support the legislation. “The principles include removing agriculture from the emissions cap and recognizing the wide range of carbon mitigation or sequestration benefits that agriculture can provide,” Goehring said. The American Soybean Association, National Association of Wheat Growers, National Cattlemen’s Beef Association, National Corn Growers Association, National Farmers Union, National Milk Producers Federation, National Pork Producers Council, and the USA Dry Pea & Lentil Council are among the organizations supporting the principles.
“The Waxman-Markey Bill was recently passed out of the House Energy and Commerce committee, and may now be considered by other committees, including the House Agriculture Committee,” Goehring said. “Although the legislation may change dramatically as it is considered by various committees, it does not appear to be acceptable in its present state to the agricultural community.”
Cap and trade is a policy for controlling greenhouse gas emissions. The government sets a cap on the amount of carbon emissions. Companies and other entities are issued emission permits and must hold an equivalent number of credits that allow them to emit a specific amount of carbon. The total credits cannot exceed the cap. Companies that need to increase their emissions must buy credits from those that emit less carbon in a transfer of credits, known as a trade. “Passage of cap and trade legislation, even if it excludes agriculture, may result in increased costs to business and industry – costs that will ultimately be shouldered by all segments of society, including farming and ranching,” Goehring said. “We need a detailed analysis and study to help us better understand the issues and to make informed decisions about this legislation.” (Contact: Ted Quanrud at 701-328-233 or Patrice Lahlum at 701-239-7210)