Smith, House Agriculture Committee Examine Impact Of Climate Change On Ag Producers

Press Release

Congressman Adrian Smith (R-NE), a member of the House Subcommittee on Conservation, Credit, Energy, and Research, today participated in the first of two hearings on the economic effects climate change legislation will have on the agriculture industry.

In June, the House of Representatives passed H.R. 2454, the American Clean Energy and Security Act, climate legislation commonly referred to as "cap-and-trade." The bill would impose new greenhouse gas emission standards and efficiency standards across the U.S. economy while creating the untested and complex cap-and-trade proposal. Smith voted against the legislation.

The hearings, which will conclude tomorrow, will review published studies and analysis on the impact the cap-and-trade policy will have on agriculture.

"One thing is certain: forcing a cap-and-trade mandate will create greater challenges for our rural economy. Implementing a cap-and-trade system amounts to a national energy tax at a time when both producers and consumers are struggling. While I support investment in clean, renewable energy, the infrastructure needed to employ this approach is not realistic. The agriculture sector is one of the most energy-intensive, and any increase in operating costs could devastate farmers and ranchers," Smith said.

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.

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