Costs and Benefits to Agriculture from Climate Change Policy

Abstract

<p>Consideration and subsequent passage of the American Clean Energy and Security Act of 2009 by the U.S. House of Representatives focused attention on whether agriculture would be helped or hurt by the policy’s objective of reducing U.S. greenhouse gas emissions. Even though Collin Peterson, chairman of the House Agriculture Committee, sought and obtained changes to the legislation that were favorable to agriculture, many farm groups came out in opposition to the bill. One example is the American Farm Bureau Federation, which estimated that U.S. net farm income would decrease by at least $5 billion per year by 2020. Other farm groups supported the legislation, including the National Wheat Growers Association, which found that the Peterson changes helped shape a policy that will “…ensure that agriculture has a place in any climate change legislation and that producers are able to reap potential benefi ts rather than just accept coming costs.”</p>