9 Key Principles to Cap-and-Trade Legislation

Several proposals have been circulating that would create a cap-and-trade system for greenhouse gas emissions in the United States. A dozen agricultural organizations, including the National Corn Growers Association, want you to know there are nine key principles that are vital to the farm economy regarding greenhouse gas cap-and-trade legislation.

Briefly, the principals include:
1.) Agriculture sector must not be subject to an emissions cap;
2.) Any legislation must fully recognize the wide range of carbon mitigation or sequestration benefits that agriculture can provide;
3.) Legislation must make economic sense for agriculture;
4.) USDA should promulgate the rules and administer any agricultural offsets;
5.) The use of domestic offsets must not be artificially limited;
6.) Carbon sequestration and greenhouse gas mitigation rates must be based on sound science;
7.) Cap-and-trade legislation must provide an initial list of project types that are eligible agricultural offsets.;
8.) Legislation should recognize early actors; and
9.) Legislation should not prohibit stackable credits or participation in multiple programs when multiple benefits are achieved for the same practice.

NCGA Ethanol committee Chairman Steve Ruh says - if legislation is structured appropriately, agriculture can play an important role in greenhouse gas mitigation while benefiting economically from a future carbon market.