Cap And Trade: Controversy With Potential Revenue

CattleNetwork.com
04/21/2010 10:13AM

For all practical purposes, every Cornbelt farmer is in the middle of the great debate about energy. If you are growing corn and/or soybeans, your commodities are priced depending on ethanol and biodiesel demand. If you are using fertilizer, pesticides, and other chemicals made from petrochemicals, you are a consumer. If you are just fueling up to head to the field, the parts store, or sending your family to school, you are participating in the bioenergy market. You really can’t escape. And that is why familiarity with the biofuels market, cap and trade, and US energy policy is important to your economic welfare.

You probably are aware that the controversial Cap and Trade legislation passed the US House with a slim margin, but consideration was delayed in the Senate until after healthcare issues were resolved. Every economist and policy specialist will tell you that Cap and Trade will cause energy prices to rise, which includes your diesel fuel bill, but that farmers who want to participate will be able to financially benefit. That is the basis for a new report from 9 economists featured in the April Edition of Policy Issues published by the Agricultural and Applied Economics Association.

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