WASHINGTON (June 26, 2009) – National Farmers Union President Roger Johnson commended the U.S. House of Representatives today for passing the American Clean Energy and Security Act of 2009 by a vote of 219-212.

“This legislation recognizes the unique role America’s family farmers and ranchers can play when it comes to combating global climate change. The agricultural offset program, overseen by USDA, will help mitigate the increased input costs of a cap and trade program, while the early actors provision recognizes those producers who have already adopted environmentally-friendly practices.

“Failing to pass climate change legislation is not an option. The EPA is poised to act, with the agency’s proposed endangerment finding paving the way for a regulatory approach to addressing greenhouse gases. If this were to occur, the positive provisions within climate change legislation would be lost.

“I commend the House leadership for their tireless efforts to include agriculture as part of the climate change solution. Agriculture Committee Chairman Peterson, Speaker Pelosi, Majority Leader Hoyer and Energy and Commerce Committee Chairman Henry Waxman were instrumental to the passage of the bill.

“While not perfect, the House-passed bill is a step in the right direction. I look forward to working with the Senate as they begin considering climate change legislation.”

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WASHINGTON (June 25, 2009) – National Farmers Union today urged members of the House of Representatives to vote in support of the House Agriculture Committee Chairman Collin Peterson, D-Minn., amendment to the American Clean Energy and Security Act.

“NFU strongly urges members of the House to support the Peterson amendment and a related manager’s amendment dealing with early actors. Upon approval, we urge members to vote in favor of the climate change legislation,” NFU President Roger Johnson said. “A strong offset program overseen by the U.S. Department of Agriculture and the recognition of early actors will ensure America’s farmers and ranchers can be a part of the climate change solution.”

NFU policy supports a national, mandatory carbon emission cap and trade system if USDA is granted control and administration of the agriculture offset program and early actors are recognized. The organization has also urged that no artificial cap be placed on domestic offsets, carbon sequestration rates are based upon science and producers are permitted to stack environmental benefit credits.

The Peterson amendment also addresses the controversial theory of indirect land use, which holds American farmers accountable for producers’ actions in foreign countries. This theory is not based on peer-reviewed science and delaying the requirement that EPA consider indirect land use will ensure continued development and success of our nation’s renewable fuels industry.

Johnson praised Peterson, Speaker Pelosi and Majority Leader Hoyer for their efforts. “This agreement would not have occurred without the diligent work of Chairman Peterson, members of the agriculture committee and the House leadership. I thank them all for standing up for America’s farmers and ranchers,” Johnson said.

“A strong vote in favor of agriculture offsets and approving the underlying bill is a step in the right direction. Much work remains to be done once the bill is sent to the U.S. Senate. NFU will be fully engaged and looks forward to further refining the legislation.”

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“The free trade agenda gives our trading partners a competitive advantage over American producers because many of them don’t have to meet the same high labor, environmental and health and safety standards as our farmers and ranchers,” NFU President Roger Johnson said. “The TRADE Act establishes basic, common sense principles upon which future trade agreements ought to be based. These principles would enable American agriculture to participate on a level playing field.”

American producers sell their products in a global marketplace, dominated by a small number of multinational firms. Johnson said past trade negotiators have often traded agriculture off to achieve favorable trade agreements for other sectors of the economy.

“The agriculture sector and rural America ought to be supported by our trade negotiators.” Johnson said. “Congress must ensure that future trade agreements enable American agriculture producers the opportunity and ability to compete fairly.”

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“This report confirms what National Farmers Union has been saying for some time, excessive speculation led to the commodity price bubble. Unfortunately, as speculators created this market bubble, many farmers ended up locking in higher input and feed costs. Now, following the market collapse, farmers and ranchers are struggling to pay these higher costs and rural communities, in turn, are feeling the pinch.

“The report makes four recommendations that NFU whole-heartedly endorses. Phasing out existing wheat waivers for index traders, taking further action, analyzing other agricultural commodities and strengthening data collection for non-agricultural commodities are good steps and should be taken under consideration by the CFTC.

“NFU has supported legislative efforts to increase market transparency in the past and I am hopeful this report will spur Congress to act. I look forward to working with Senator Levin and his committee as they address the role of speculation in the marketplace.”

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In a letter to Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, and Ranking Member Saxby Chambliss, R-Ga., and House Agriculture Committee Chairman Collin Peterson, D-Minn., and Ranking Member Frank Lucas, R-Okla., NFU President Roger Johnson said dairy operations of all sizes and across all regions of the country are facing an unprecedented economic disaster.

“From Minnesota to California and Texas to Vermont, the current situation is untenable. Equity is rapidly disappearing, market prices remain at 1970 levels, creditors and feed suppliers are cutting off producers yet there is no relief in sight,” Johnson wrote. “Congress, the administration and the American public must not wait any longer in offering these individuals a lifeline.”

In March, NFU member-delegates approved a special policy resolution focused on the dairy crisis, including availability of low-interest and emergency loans, mitigation of loan foreclosure, establishment of a dairy price support program that accounts for the total cost of production, elimination of authority for dairy forward contracting and closing trade loopholes that allow unlimited amounts of imported milk proteins to displace domestic milk, along with many others.

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“It appears futures trading and cash market transactions in the grain, dairy and livestock markets are inconsistent with supply and demand fundamentals as the result of a handful of commercial interests’ behaviors,” the board wrote. The board letter expands on a similar letter sent to the CFTC in February.

Last year, local elevators and other commercial users of the commodity markets were faced with historic margin calls and quickly maxed out their lending limits. As a result, commercial users backed away from offering producers critical forward marketing tools, making it difficult for producers, paying record high input costs, to protect their financial risk.

The board also urged the CFTC to review the effects of concentration within the grain and livestock sectors. “The level of consolidation and concentration within nearly every sector of agriculture is staggering,” the board wrote.

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In a letter to Grain Inspection, Packers and Stockyards Administration (GIPSA) Administrator Dudley Butler, the NFU Board of Directors said it is GIPSA’s responsibility to maintain fair trade practices in the marketing of livestock, provide financial protection for participants in livestock transactions and ensure open competitive marketing conditions for livestock and meat.

“It appears farmers and ranchers have been fighting anti-competitive practices with one hand tied behind their backs,” the board wrote.

The Office of Inspector General (OIG) and Government Accountability Office (GAO) have both found GIPSA has failed to meet its responsibilities.

“America’s independent farmers and ranchers are looking to you reverse the history of inaction at GIPSA,” the board wrote. “We applaud and thank you for your continued support of the agricultural industry and look forward to working with you to ensure the restoration of competitive markets.”

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The amendment, to be offered by Sen. Max Baucus, D-Mont., seeks to restore the Clean Water Act’s original intent, minimize costly litigation and expedite the permitting process for agricultural producers.

“By placing existing regulatory exemptions in legal statute and legislatively clarifying the exemptions for prior converted cropland, farmers and ranchers will be able to predict what resources are subject to Clean Water Act regulation with greater certainty,” the board wrote in a letter to Baucus

The letter stated that as a result of much litigation, the original intent and scope of the Clean Water Act has been confused. “A clear and concise method of determining jurisdiction and permitting would allow farmers and ranchers to continue to be proactive stewards of all environmental resources.”

The Senate Environment and Public Works committee plans to mark up the Clean Water Restoration Act tomorrow.

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Johnson made the following statement.

“If the legislation approved by the Energy and Commerce Committee is not improved with regard to agricultural offsets, National Farmers Union will urge members of Congress to vote against the American Clean Energy and Security Act of 2009.

“NFU has been proactive and constructive throughout the legislative process and would very much like to support climate change legislation. However, the Energy and Commerce Committee failed to adequately address any of our priorities.

“NFU policy supports a national, mandatory carbon emission cap and trade system to reduce non-farm greenhouse gas emissions if the U.S. Department of Agriculture is granted control and administration of the agriculture offset program, early actors are recognized, no artificial cap is placed on domestic offsets, carbon sequestration rates are based upon science and producers are permitted to stack environmental benefit credits.

“It is my hope Chairman Peterson will be successful in producing a comprehensive amendment to resolve our concerns before the bill moves to the House floor.”

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WASHINGTON (June 11, 2009) – National Farmers Union President Roger Johnson today pressed the House Agriculture Committee to support provisions that allow farmers and ranchers to participate in climate change legislation.

In testimony before the committee Johnson said NFU believes the flexibility of a cap and trade program holds the most potential for actual greenhouse gas emissions reductions while helping to mitigate the increased energy costs that would result from such a program.

“A cap and trade system could provide farmers and ranchers the opportunity to be a part of the climate change solution,” Johnson said. “Carbon sequestration and methane capture from certain livestock projects could be valuable revenue streams for producers who will experience increased agricultural input costs.”

Johnson said the American Clean Energy and Security Act of 2009, while exempting agriculture from an emissions cap and including 2 billion tons of allowable offsets, has serious deficiencies that prevent farmer and rancher participation. The House Energy and Commerce Committee approved the legislation May 21.

“We are very hopeful that the House Agriculture Committee will be able to make the necessary changes to the bill so that it will work for agriculture,” Johnson said.

NFU policy supports a national, mandatory carbon emission cap and trade system to reduce non-farm greenhouse gas emissions if the following conditions are met: the U.S. Department of Agriculture (USDA) is granted control and administration of the agriculture offset program; early actors are recognized; no artificial cap is placed on domestic offsets; carbon sequestration rates are based upon science; and producers are permitted to stack environmental benefit credits.

NFU has emerged as a leading voice for how agriculture can play a significant role in combating global climate change. Johnson’s testimony laid out the enrollment process for the Farmers Union Carbon Credit Program, which has taught the organization valuable lessons on how to properly construct an offsets program.

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