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The U.S. Senate is discussing climate change and what we as a nation should be doing about it.
Recently the U.S. House passed HR 2454, the American Climate and Energy Security Act. Unfortunately, HR 2454 is neither a climate nor an energy bill. Our Indiana senators should be aware that HR 2454 will impose significant new costs on Indiana farmers through increased fuel, fertilizer and energy prices without any corresponding environmental benefit. It will also dramatically raise utility costs for Indiana consumers and businesses.
Greenhouse gases are a global problem and require a global solution. Without commitments from countries such as China and India, climate change will not be addressed in any meaningful way. India has rejected the U.S. proposal for binding carbon limits. It is also well publicized that China is building new coal-fired electrical generation plants as fast as humanly possible. EPA Administrator Lisa Jackson recently admitted before a Senate committee that unilateral action by the United States will have no real effect on global CO2 levels.
Indiana agriculture is an energy-intensive industry. Farmers produce agricultural commodities that provide food, fiber and fuel for our citizens. For commodity producers, any increases in production costs are a direct reduction from a farmer’s pocket. Unlike other industries, we are not able to pass along our costs to consumers or utility rate payers. The American Farm Bureau Federation conservatively estimates that HR 2454 would cause an annual loss of national farm income of $5 billion by 2020.
HR 2454 seeks to wean our economy off of fossil fuels like coal but does not plug the energy hole. It does not provide for enhancement of other clean burning sources such as nuclear power. Many people assert that we should switch from coal to natural gas. But natural gas is the principal feedstock for agricultural fertilizer and such a switch would dramatically increase already high domestic fertilizer costs in addition to energy costs.
As a state, Indiana is blessed with rich supplies of coal. In fact, more than 96 percent of our state’s electrical generation comes from coal. Coal is what keeps our electrical utility costs reasonable and contributes to Indiana’s competitiveness as a manufacturing state. It provides jobs in a state that has an unemployment rate of more than 10 percent.
If Congress really wants to make a difference in climate change, then it should focus on conservation. Conservation is the low-hanging fruit in the climate debate and should be pursued first and foremost. Or, if Congress is really serious about energy independence, then we should be drilling for more oil and gas, producing and consuming more renewable energy such as biofuels, wind and solar. Making coal unaffordable for Indiana will cost Indiana jobs and raise our energy costs.
Let me make it very clear that the Indiana Farm Bureau is committed to a clean environment; farmers across the state work daily to improve water, air and soil quality. But this legislation does little but increase costs for farmers, consumers and the elderly; plus it drives U.S. jobs overseas and does not prevent China and India from increasing their smokestack emissions.
There are two old political sayings that our Indiana senators should remember during the climate debates. First, “Think globally, but act locally.” Adopting the language of HR 2454 without considering the costs to Indiana citizens, businesses and agriculture would be a huge mistake. The other saying is, “All politics are local.” Remember that lawmakers represent us; so they should act carefully and vote wisely.
DON VILLWOCK President Indiana Farm Bureau
