John Block Reports from Washington

Hello everybody out there in farm country. This radio commentary is brought to you by the Renewable Fuels Association, Wal-Mart Stores, Monsanto, and John Deere. They are all friends, supporters, and allies of a healthy farm economy and prosperous rural America. Thank you. And now for today’s commentary— President Obama and the U.S. Congress are putting in the last minute push to pass climate change legislation. The President wants to reduce greenhouse gas emissions and reduce our reliance on fossil fuels. That sounds good. At least it did sound good before the details of the plan were known, that is, before we understand the sacrifice that would be demanded of us. At first, we were led to believe that, because of the crops we grow and our forest land, we would be credited for making a substantial reduction in carbon dioxide. That being the case in a Cap and Trade program, we would have credits to sell which would add up to real money. It would be a cash cow. Now, the new information that is slowly being made public suggests that agriculture will not be given much credit, if any. The Farm Bureau and other ag organizations oppose the bill in its present form. Now, they have some ammunition provided by the Heritage Foundation Center for Data Analysis. The analysis projects effects of the bill would: 1. Gasoline and diesel costs would be up 35 percent by 2035. Electricity up 90 percent. 2. Because of the much higher energy costs, net farm income is expected to drop $8 billion in 2012, $25 billion in 2025, and $50 billion in 2035. Not surprising, food prices to the consumer will soar. It is clear that many other countries will be unwilling to impose such harsh medicine. Thus, U.S. producers will be at a huge competitive disadvantage. The government plan as it is right now will be very costly to not only farmers and ranchers but our whole economy. I have to add that I am very skeptical about the validity of this “climate change – global warming” mania. What’s worse, accepting a 1 or 2 degree increase in temperature, which we won’t even notice, or killing our already weak economy? So far, House Agriculture Committee Chairman Peterson has stood his ground against the House leadership pushing the legislation, but they will beat him down unless the whole ag industry joins in the fight. Until next week, I am John Block from Washington, D.C.