Goehring Calls for Cap and Trade Study

North Dakota ag commissioners wants NDSU to gauge economic impact of proposed greenhouse legislation.

Published on: Jun 8, 2009
North Dakota Agriculture Commissioner Doug Goehring has asked for a university study to help North Dakota farmers, ranchers and farm organizations better understand the economic impact and other possible effects of proposed federal legislation establishing a federal "cap and trade" system for greenhouse gases.

"Passage of cap and trade legislation, even if it excludes agriculture, may result in increased costs to business and industry – costs that will ultimately be shouldered by all segments of society, including farming and ranching," Goehring says. "We need a detailed analysis and study to help us better understand the issues and to make informed decisions about this legislation."

Goehring has asked Won Koo, director of the Center for Agricultural Policy & Trade Studies at North Dakota State University, to conduct the economic impact analysis.

"Dr Koo and his team are respected researchers in the field of agricultural policy, especially the economics of agriculture," Goehring said. "I am confident the model they create will shed more light on the economic impact to production agriculture and its supporting industries."

Goehring said several national agricultural organizations are carefully monitoring this legislation and have developed a list of principles that they feel must be included in order to support the legislation.

"The principles include removing agriculture from the emissions cap and recognizing the wide range of carbon mitigation or sequestration benefits that agriculture can provide," Goehring said.

The American Soybean Association, National Association of Wheat Growers, National Cattlemen's Beef Association, National Corn Growers Association, National Farmers Union, National Milk Producers Federation, National Pork Producers Council, and the USA Dry Pea & Lentil Council are among the organizations supporting the principles.

Source: ND Department of Agriculture