Wisconsin Ag Connection - National/World News - Farm Bureau Says S. 1733 Fails Farmers and Consumers

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Farm Bureau Says S. 1733 Fails Farmers and Consumers
USAgNet - 10/30/2009

American Farm Bureau Federation President Bob Stallman testified Thursday before the Senate Environment and Public Works Committee on S. 1733, the Clean Energy Jobs and American Power Act. Noting AFBF's opposition to the House companion, bill H.R. 2454, Stallman said the group is similarly opposed to the Senate version.

"One of the major failings of H.R. 2454 was that the measure failed to provide a cost-effective blueprint to transition to a clean energy economy," said Stallman. "S. 1733 exhibits the same shortcoming."

Stallman stressed that cap and trade legislation would result in higher fuel, fertilizer and energy costs to farmers and ranchers. Cost increases incurred by utilities and other providers resulting from climate change legislation would ultimately be borne by consumers. He says the impacts of the legislation go far beyond just the farm and ranch community.

"Families will be hit hard with higher energy costs under any cap-and-trade program, an amount that could total up to $200 billion a year for American taxpayers. That will put enormous strain on family budgets," he noted.

Stallman also asserted that there should be two essential components to any policy that seeks to transition from one source of energy to new sources: a mechanism that removes the old source and a means to "plug the hole" that is left when that energy source is removed with a readily available, cost-effective new source of energy.

Regarding offsets, Stallman told committee members that unlike the House bill, S. 1733 does not specifically provide a place for agriculture and forestry in its offsets program. While the bill provides a pool of 1.5 billion tons of domestic offsets, the bill does not specify who is eligible to provide those offsets. Instead, the president may choose which sector is eligible.