Opinion: Climate Control And You
January 1, 2010 There is a lot of discussion flying around Florida agriculture about national climate control policy and how it will affect our state’s growers.
No wonder. Committees in the U.S. Senate are considering cap-and-trade legislation, print publications are touting carbon credits, and UF/IFAS is holding workshops on the carbon offset opportunities for Florida agriculture.
I thought it would be helpful to outline some of the issues.
Terms To Know
First, global warming or its new name — “climate change” — involves several policy terms that growers need to know. For example:
A carbon tax would be a federal levy of fees on products contributing to large greenhouse gas (GHG) emissions and require polluters to pay for the carbon emitted. The proceeds could go to research and development and compensation to carbon mitigators.
A cap-and-trade system is where the government would place a limit on the amount of GHG emissions that regulated entities (i.e. power plants) could emit and force them to purchase carbon credits to offset the pollution. By exceeding these federally set levels, polluters could purchase offsetting credits from agricultural producers or other GHG-reducing sources until they can meet the mandated reduction levels through technology adaptation.
Carbon sequestration can be defined as the capture and secure storage of carbon (GHG) that would otherwise be emitted into or remain in the atmosphere. Citrus trees sequester carbon. In fact, the University of Florida reports a healthy acre of citrus can sequester up to 20 tons of carbon per year.
Carbon credits: The carbon credit system was ratified in conjunction with the Kyoto Protocol. Credits are awarded to countries, entities, or groups that have reduced their GHGs below their emission quota. Carbon credits can be traded in the international market at their current market price. Carbon credits can be given for carbon sequestration.
The Devil Is In The Details
Some farmers are currently trading carbon credits on the voluntary Chicago Climate Exchange. However, I would caution Florida citrus growers and other agricultural producers who think the carbon market is going to be a windfall for them. The complexities of this endeavor are massive and the devil is truly in the details.
In fact, under either a carbon tax or cap-and-trade scenario growers could feel a pinch. Prices could increase for important agricultural inputs — fuel, fertilizers, manufactured products, and electricity. Any federal program would have to be carefully constructed given the complexity of regulating agricultural emissions. For example, agricultural and forestry carbon storage capacity varies throughout the country. In addition, how would a cap-and-trade measure treat perennial crops such as citrus? Would carbon credits only be factored for new plantings?
Of course, there are a host of differing views on what a carbon tax or cap-and-trade system would do for agriculture. The Heritage Foundation, a conservative think tank, believes it would spell disaster for agriculture (click here to view the Foundation’s report), while a USDA study reports agriculture will reap benefits from cap-and-trade (click here to view the USDA study). Neither study specifically mentions specialty crops such as citrus.
Federal climate legislation, called the Waxman-Markey American Clean Energy and Security Act, was passed by the U.S. House of Representatives in early June and is pending in the U.S Senate. Future action on the cap-and-trade legislation isn’t expected until this spring. In the meantime, FCM will remain engaged with the Florida Congressional Delegation as the legislative process continues to ensure that Florida citrus growers have a seat at the table.