Background
There is overwhelming concern in the scientific and political community that greenhouse gas (GHG) emissions from human activities are contributing to an increase in average global temperatures and adverse changes in the world’s climate and weather. GHG emissions include carbon dioxide, nitrous oxide, and methane.
U.S. agriculture - and especially dairy - is poised to play a unique role in the climate debate. A cap on greenhouse gas emissions would increase fertilizer and energy costs to farmers as well as to other U.S. businesses. At the same time, cap-and-trade legislation could create an additional revenue stream for our industry. There would be opportunities for producers to voluntarily mitigate GHG emissions through methane capture or elimination, fertilizer management and possibly carbon sequestration in soils, there are still some questions on the measurement of this practice. Through the current proposed legislation, if an entity such as agriculture reduces GHG emissions, they can sell those credits to regulated industries which need to meet emissions requirements.
There are significant concerns over the cost to the economy and the unintended consequences of fueling the economies of China and India at the expense of the United States. Nevertheless, the conventional wisdom indicates that in one form or another, U.S. Climate Change legislation is inevitable.
Economic studies on this issue are not abundant, yet some have estimated that the gains to agriculture in additional revenue from cap-and-trade legislation to be in the order of $10 to $24 Billion.
NMPF Submits Testimony to Senate Agriculture Subcommittee on Climate Change Legislation - May 23, 2008
When the Senate Agriculture subcommittee on rural revitalization, conservation, forestry, and credit was holding a hearing on climate change, NMPF submitted testimony to help explain the important role that dairy could play in the future of such legislation.
S. 2191 (Lieberman-Warner Legislation)
The S. 2191 Lieberman-Warner legislation was a bill that was introduced in the Senate and sought to use the Environmental Protection Agency (EPA) to create a system that would help reduce greenhouse gas emissions.
