Cap & Trade Study Released

The Heritage Foundation’s Center for Data Analysis has released an economic study regarding the impact a cap-and-trade system would have on the agriculture community. The study maintains that cap-and-trade is - an energy tax in disguise - that will cause farm income to drop dramatically because of higher operating costs. It further argues that people living on fixed incomes and struggling in tough economic times can expect higher food prices as the result of this policy.

The Heritage Foundation study projects that farm income - after expenses – will drop 8-billion dollars in 2012, 25-billion in 2024, and over 50-billion in 2035. Decreases of 28%, 60%, and 94%, respectively. The report projected an average net income loss over 25 years of 23 billion dollars. Also, Construction costs will increase 10 percent, gasoline costs will increase 58 percent and electric rates will go up 90 percent over the 25 year period.

House Ranking Member Frank Lucas says - no wonder agriculture groups are increasingly coming out against the Waxman-Markey bill. They know agriculture is a target. They know that cap-and-trade promises to destroy their livelihoods. According to Lucas, - a bill of this magnitude deserves thoughtful consideration and debate. Instead, Speaker Pelosi is rushing it through Congress to the detriment of all of us.