Smith Amendment To Cap & Trade Bill Would Protect Agriculture Producers

Press Release

Smith Amendment to Cap & Trade Bill Would Protect Agriculture Producers

Congressman Adrian Smith (R-NE), a member of the House Agriculture Committee, today introduced an amendment to H.R. 2454, the American Clean Energy and Security Act, which would help compensate agriculture producers negatively affected by the legislation. The bill would implement what is commonly referred to as "cap-and-trade."

Smith's amendment would allocate 5 percent of allowances to help defray increased costs of production and declining prices resulting from increased imports or decreased exports.

Agriculture is one of the nation's most energy intensive industries, and is expected to be impacted heavily by this legislation. According to a Heritage Foundation economic analysis of H.R. 2454, farm income would drop $8 billion in 2012, $25 billion in 2024, and more than $50 billion in 2035 - decreases of 28 percent, 60 percent, and 94 percent, respectively.

U.S. farmers would be at a severe disadvantage compared to farmers in nations which do not have a cap-and-trade system with correspondingly high input costs.

Rural residents spend 58 percent more on fuel and travel 25 percent farther than American living in urban areas.

"Even a small increase in operating costs could devastate farmers and ranchers, and this bill could prove to be a huge burden on our agriculture producers. It defies logic allowances are set aside for other industries hurt by this cap-and-trade bill, but those who serve as the backbone of our economy are left out in the cold," Smith said.

Source