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Study Shows Cap-and-Trade Not Favorable for Farmers

June 11, 2009
By: Sara Schafer, Farm Journal Media Business and Crops Editor

Sara Muri, Top Producer Business & Crops Online Editor
Farmers' incomes could take a big hit if cap-and-trade legislation passes, according to a study released by the Heritage Foundation. The study outlines the impact a cap-and-trade system would have on the agricultural community.
Key findings in the study include:
  • Farm income (after paying all expenses) is expected to drop $8 billion in 2012, $25 billion in 2024 and over $50 billion in 2035.  These are decreases of 28%, 60% and 94%, respectively.

  • The average net income lost over the 2010-2035 timeline is $23 billion, which is a 57% decrease from the baseline.

  • Construction costs of farm buildings will go up from the baseline by 5.5% in 2025 and 10% by 2034.

  • By 2035, gasoline and diesel costs are expected to be 58% higher and electric rates 90% higher.
The study is in response to H.R. 2454, The American Clean Energy and Security Act, which was introduced by Rep. Henry Waxman (D-Calif.) and Rep. Edward Markey (D-Mass.).
Currently, 42 agricultural groups have written letters to members of Congress expressing opposition to the bill.
For More Information

You can e-mail Sara Muri at

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