Montana Farm Bureau Calls Greenhouse Gas Proposal New Tax on Livestock
The Montana Farm Bureau has registered its opposition to an Environmental Protection Agency proposal to regulate greenhouse gases under the Clean Air Act, asserting it would essentially result in new taxes on livestock operations.
“I know many Montana producers couldn’t afford this onerous and unnecessary tax,” said Montana Farm Bureau President Bob Hanson. “Our livestock producers are having a hard enough time making ends meet. There’s so much talk about U.S.-produced food being the cornerstone of our national security, but this would drive many, many producers out of business, and the U.S. would be forced to import food from other countries who don’t have such a tax .What’s even more ludicrous is this tax is just that—a tax. Fees collected from the EPA will not be used for anything productive, but simply to implement the tax itself.”
The American Farm Bureau Federation has also registered opposition to the EPA proposal.
“Most livestock and dairy farmers would not be able to pass along the costs incurred under this plan,” said Mark Maslyn, AFBF executive director of public policy. “Steep fees associated with this action would force many producers out of business. The net result would likely be higher consumer costs for milk, beef and pork,” said Maslyn, in comments submitted to EPA.
In addition, Maslyn said the proposed rules would be ineffective because of the global nature of greenhouse gases. “Reduction of a ton of greenhouse gases anywhere will make a difference, but if a ton is removed in Iowa and replaced by a ton in China, then no net effect occurred,” he said. “A livestock tax and regulation of greenhouse gases under the Clean Air Act will impose restrictions and added costs on the U.S. economy without reducing greenhouse gases in the atmosphere.”
According to Agriculture Department figures, any farm or ranch with more than 25 dairy cows, 50 beef cattle or 200 hogs emits more than 100 tons of carbon equivalent per year, and thus would need to obtain a permit under the proposed rules. More than 90 percent of U.S. dairy, beef and pork production would be affected by the proposal, Maslyn noted.
Permit fees vary from state to state but EPA sets a “presumptive minimum rate” for fees. For 2008-2009, the rate is $43.75 per ton of emitted greenhouse gases. According to Maslyn, the proposed fee would mean annual assessments of $175 for each dairy cow, $87.50 for each head of beef cattle, and $20 for each hog.
The Montana Farm Bureau is the state’s largest agriculture organization representing over 13,700 member families.