Johanns: Cap and Trade will Hammer Ag

In a speech delivered on the Senate floor Monday, Sen. Mike Johanns (D-Neb.) said agriculture will be hammered with increased production costs as a result of cap-and-trade.  “Different studies come up with varying numbers, but they all paint the same picture: agriculture loses,” Johanns said. “None of this should surprise anyone, because the bill is specifically designed to increase the cost of energy. “In fact, according to the Congressional Budget Office, ‘reducing emissions to the level required…would be accomplished mainly by stemming demand for carbon-based energy by increasing its price.’ We also know that farmers in America’s Heartland get hit the worst by these energy cost increases. And we know that USDA agrees. Last week, USDA officials indicated in testimony to the Senate Environment and Public Works Committee that as a result of cap-and-trade legislation, ‘the agriculture sector will face higher energy and input costs.’”