06/05/08 Study says climate change bill will increase wheat production costs

Farm and Ranch June 5, 2008 A study conducted by Doane Advisory Services of the Lieberman-Warner climate change bill, America's Climate Security Act, says the legislation could increase U.S. farmers' cost of doing business by six to 12 billion dollars in the year 2020. Ford B. West, President of the Fertilizer Institute, says that despite having experienced the largest operating price increases in history during the last seven years, farmers may be in for a surprise when they learn the impact the climate change legislation would have on their bottom lines. He recommends farmers get a closer look at the details of the study at www.tfi.org West: "They can then look at what the average cost we have from USDA and take a look at their own production costs and make some estimates. Then they can make up their own decision on where the carbon legislation may impact them on the energy side of the equation." The Doane analysis says the climate change bill could add over 16 dollars to nearly 32 dollars an acre to the cost of wheat production between now and 2020. Barley production costs could go up by as much as 26 dollars an acre. Lieberman-Warner could add 40 to 79 dollars an acre to corn production. The study says farmers could get paid 18 dollars an acre for carbon sequestration but that does cover the increased costs Doane says the legislation would cause. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.