A recent column in the NY Times by James McWilliams discussed the debate in Congress about carbon cap and trade, and how agriculture fits into the puzzle.
He said the recent announcement by the EPA to regulate carbon marks a step forward, increasing pressure on Congress to pass the legislation. But he says it’s also a “wake up call” to growers. “Climate-change legislation — insofar as it hinges on cap-and-trade rather than a carbon tax — could be quite advantageous to agriculture,” McWilliams said.
Since the legislation will rely more on buying carbon credits than a carbon tax. Hence, growers will have credits to sell others by virtue of their carbon-sequestering practices, i.e. those in no-till and those using cover crops. McWilliams explains:
Indeed, through a wide variety of carbon sequestering techniques that are achievable in most agricultural operations — things like preserving pastureland, improving soil quality, planting trees, transitioning to no-till farming, cultivating perennials, reducing fertilizer application, etc. — agriculture could significantly counteract the increasing costs of fuel and fertilizer that cap and trade would cause while improving a much-maligned agricultural environment. It could profit while going eco-correct.
Financial projections on this score are optimistic. Fred Yoder, former president of the National Corn Growers Association, claims that, with “a properly constructed system,” farm revenues could grow by as much as $13 billion a year. A recent study undertaken by the University of Tennessee’s Bio-Based Energy Analysis Group (and released in November by the 25x’25 Carbon Work Group) found that, even with the increased energy costs, farmers would see positive net returns on all major crops.
But McWilliams warns that if the EPA gets agressive with capping emissions, then farmers might then be dumped into the same category as other consumers…cars and coal-fired power plants. What a tragedy to have that happen, he said, a situation where farmers would be fined but also denied financial incentives…a double whammie.
Tags: Annual ryegrass, carbon cap and trade legislation, carbon sequestration, EPA regulating carbon emissions, No-Till
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