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Kerry-Boxer will cost farmers, consumers
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10/07/09 08:50 AM ET
The "Clean Energy Jobs and American Power Act," introduced by Sens. Kerry and Boxer, will cost American farmers and consumers without providing any corresponding benefits.
According to the Department of Energy, energy costs could grow by $1,870 per household. Combined with higher costs for food because of the bill, the additional yearly hit on families could total about $2,300 per household. Said another way, the cap and trade law could impose costs of up to $200 billion a year on American taxpayers, according to the Treasury Department. That's the equivalent of a 15 percent hike in personal income taxes.
Farmers and ranchers would be particularly impacted as a result of such legislation. Agriculture is an energy intensive business that will be particularly hard hit because of farmers' many costs, which include fueling their tractors, providing their crops with fertilizer and crop protection, irrigating crops and caring for their animals.
While farmers generally cannot directly pass along increased costs to consumers, higher farm, transportation and manufacturing costs are likely to translate into higher food prices for consumers. Some estimates predict increased food prices of $33 billion a year by 2020 and $51 billion a year by 2030.
And what do we get for these costs? Very little.
This is not a climate bill. Scientists calculate that this bill will have an impact on climate of less than 0.2 degrees by 2100. That is because greenhouse gases are a global issue that must be addressed by all emitting nations together. The United States acting alone will have virtually no effect on global warming, a view that is even shared by the administrator of the Environmental Protection Agency.
This is also not an energy bill. While reducing emissions will reduce the use of coal and oil, it does nothing to "plug the hole" that will be left by reducing those sources. The logical and cleanest source is nuclear energy, but the bill does nothing to promote or streamline its development. There are no provisions to promote development of our vast reserves of natural gas.
Higher costs with very little benefits is a losing combination.
According to the Department of Energy, energy costs could grow by $1,870 per household. Combined with higher costs for food because of the bill, the additional yearly hit on families could total about $2,300 per household. Said another way, the cap and trade law could impose costs of up to $200 billion a year on American taxpayers, according to the Treasury Department. That's the equivalent of a 15 percent hike in personal income taxes.
Farmers and ranchers would be particularly impacted as a result of such legislation. Agriculture is an energy intensive business that will be particularly hard hit because of farmers' many costs, which include fueling their tractors, providing their crops with fertilizer and crop protection, irrigating crops and caring for their animals.
While farmers generally cannot directly pass along increased costs to consumers, higher farm, transportation and manufacturing costs are likely to translate into higher food prices for consumers. Some estimates predict increased food prices of $33 billion a year by 2020 and $51 billion a year by 2030.
And what do we get for these costs? Very little.
This is not a climate bill. Scientists calculate that this bill will have an impact on climate of less than 0.2 degrees by 2100. That is because greenhouse gases are a global issue that must be addressed by all emitting nations together. The United States acting alone will have virtually no effect on global warming, a view that is even shared by the administrator of the Environmental Protection Agency.
This is also not an energy bill. While reducing emissions will reduce the use of coal and oil, it does nothing to "plug the hole" that will be left by reducing those sources. The logical and cleanest source is nuclear energy, but the bill does nothing to promote or streamline its development. There are no provisions to promote development of our vast reserves of natural gas.
Higher costs with very little benefits is a losing combination.
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