Press Releases

Senator Roberts: Rural Communities Will be Penalized Under Cap and Tax

Notes the Indirect Costs of the Bill to Family Budgets

Jul 23 2009

WASHINGTON, DC – U.S. Senator Pat Roberts today warned cap and trade will have negative impacts on rural communities and agricultural producers in exchange for little to no reduction in carbon emissions.

Senator Roberts joined former U.S. Secretary of Agriculture, U.S. Senator Mike Johanns (R-NE) and U.S. Senator John Thune (R-SD) at a press conference today on the issue.

"USDA’s analysis has holes big enough to drive a truck through," Roberts said. "It’s based on EPA’s political assumptions regarding energy use. EPA grossly underestimated the increased costs of natural gas and the increased costs of fertilizer. Energy costs paid by farmers, ranchers, local businesses, hospitals and you and I will skyrocket.

Roberts said the legislation will damage rural main streets across America.

"Kansas is home to three refineries, all located in small towns and each one employing over 600 people. If this bill becomes law, all three could close their doors.

"Many producers and their spouses work off the farm to supplement their income and provide health insurance for their family. In these communities the small refinery or other businesses in town supported by the refineries’ payrolls provide such necessary employment.

"Yet each of these refineries face an astronomical tax increase under this bill. Refineries would be responsible not only for purchasing allowances for their emissions, but also for the emissions of their customers.

"Each small refinery will be forced to raise hundreds of millions of dollars every year to pay for this government mandate because they simply can not pass costs onto consumers as easily as integrated companies.

"And since securing a line of credit for such a large sum is not an easy feat in today’s economy, small refineries will be at a competitive disadvantage and could be forced to close their doors on the first day of implementation of this bill.

"I ask, how is this good for rural America? How does losing these jobs benefit the greater rural community? Does giving a few producers a carbon credit payment outweigh the loss of a spouses’ job, higher electric bills, gasoline prices and food costs? We talk a lot about direct costs on the price of production, but what about these indirect costs on the family budget?

"As we work through this legislation I’m hopeful this committee will have additional opportunities to address the many concerns of this bill and its affect on rural America.

"Enticing farmers with carbon payments, ignoring the consequences of a loss of at least 40 million crop acres and selling out our small towns with cap and trade is not good for our producers or rural America."

Senator Roberts is a member of the Senate Committee on Finance and a senior member of the Senate Committee on Agriculture, Nutrition and Forestry. He has introduced legislation to intensify research into the link between agricultural practices and climate with a focus on carbon sequestration.

Senator Roberts is a member of the Senate Committee on Finance and a senior member of the Senate Committee on Agriculture, Nutrition and Forestry. He has introduced legislation to intensify research into the link between agricultural practices and climate with a focus on carbon sequestration.

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