Cap and Trade and Fuel

 Senator Kay Bailey Hutchison of Texas called for a report that shows cap-and-trade legislation will result in a big gas tax on the American farm community.  The increased price per gallon of gasoline and diesel that are expected from climate change legislation multiplied by the amount of fuel the country is expected to use throughout the life of the bill adds up to a $3.6 trillion gas tax bill.

 Farmer Richard Cortese joined the senators for a news conference about the report: This type of fuel cost increases described in this report make it very difficult for any of our farmers to continue on the farm.  As a small business man we cannot always afford to buy expensive, new, high-technology equipment to be more fuel efficient.  Our margin lines are extremely tight and we’re still recovering from the high prices of fuel over the last 18 months.  We cannot always pass along our costs. 

 Cortese says fuel prices can play a huge role in whether a farmer stays in business or goes under.

 Just about everything we do in our ag operations today is diesel powered, whether it be our tractors, whether it be our combines, trucks to haul grains.  Diesel is an extremely important part of our operation. Adding this to it is not going to be of any benefit. It’ll keep us from being innovative.  It will keep us from expanding.  It will keep us from maybe buying a more fuel-efficient tractor because we can’t afford it.