Chairman Frank Lucas today released the following statement on Scott O'Malia's last day as Commissioner of the Commodity Futures Trading Commission (CFTC). Last month, O’Malia announced he would resign to pursue other opportunities.
The Ag Minute: Studies Show There Are Real Costs to Agriculture with Cap & Trade
Tamara Hinton (202) 225-0184
WASHINGTON – This week during The Ag Minute, Ranking Member Frank Lucas highlights recent studies on the cap and trade bill's potential impact on agriculture.
Click here to listen to The Ag Minute. The transcript is below.
"In June, the House of Representatives passed H.R. 2454, the Waxman-Markey climate change bill. Now the U.S. Senate has begun considering legislation on the same subject.
"As the Ranking Member of the Agriculture Committee, my greatest concern remains how climate change legislation will impact agriculture.
"Numerous studies on the bill’s cap and trade provision show that there will be real costs to agriculture—while the benefits—if any—are difficult to quantify.
"One recent study reveals that the Waxman-Markey bill jeopardizes the existence of the domestic fertilizer industry because the price of natural gas, which is necessary for fertilizer production, will increase dramatically.
"Another study found that 71 of 98 farms studied will be worse off under cap-and trade because of higher production costs.
"Yet another study predicts that by 2030, gasoline prices will increase up to $4.86 per gallon. And, electricity prices will increase by roughly 50 percent.
"If this bill were to become law, it would dramatically change agriculture for the worse.
"Not just because this industry is energy-intensive, but because this bill would impact the entire network that supports agriculture. From input suppliers to processors to retailers to consumers, no part of the food chain would be left unharmed."
The Ag Minute is Ranking Member Lucas' weekly radio address that is released each Tuesday from the House Agriculture Committee Republicans.