Nebraska Farmers Union

1305 Plum Street • Lincoln, NE 68502 www.nebraskafarmersunion.org Contact John Hansen Office: 402-476-8815, Fax: 402-476-8859, Cell: 402-580-8815 john@nebraskafarmersunion.org

Nebraska Farmers Union Says Nebraska Farm Income Is Down

$17.9 Million From Carbon Sequestration Income Reductions

March 1, 2010 For Immediate Release

Lincoln, NE. Nebraska Farmers Union (NEFU) released data today from the Chicago Climate Exchange (CCX) that compares the value of agriculture based carbon payments based on today’s carbon values of 15 cents per metric ton compared to the 2008 average annual CCX price of $4.72 per metric ton. NEFU President John Hansen said it was important for farmers, ranchers, and elected officials to better understand the amount of dollars being lost due to climate change uncertainty.

Nebraska’s 3,064,918 acres enrolled in the Chicago Climate Exchange’s voluntary carbon sequestration practices by 1,604 farmers and ranchers totaling 3,937,232 metric tons is ranked first in the nation.

The Chicago Climate Exchanges estimated the market value difference between the current 15 cents per ton compared to the 2008 marketing year average price of $4.72 per metric ton a loss of $17,993,150 in earned income for Nebraska farmers and ranchers. The national loss of farm income for the 8,700 farmers who have enrolled 17.2 million acres sequestering 32.4 million metric tons totaled $148,100,091.

Nebraska Farmers Union, one of the three largest aggregators of carbon in the state, divided the number of Nebraska carbon sequestration participants into the lost state carbon market value lost to get a “ballpark” average loss of $11,217.67. The same process for national data yielded an average loss of $17,022.99 per national enrollee. Hansen stressed that in a year of higher production costs, a reduced federal farm income safety net, and struggling grain and livestock commodity prices, that amount of lost income is significant. “These market based carbon sequestration payments go to farmers and ranchers who sequester carbon by utilizing good conservation practices, which also improve water quality, air quality, reduce fossil fuel use, and improve the water holding and fertility of the soil,” Hansen said.

Hansen said “The majority of the reports and analysis done comparing the additional costs to the additional new revenue streams from a regulatory system designed to reduce carbon emissions similar to HR 2454 passed by the House show that agriculture comes out far ahead compared to allowing the Environmental Protection Agency regulations of Green House Gasses, which is now proceeding.”

The University of Tennessee study conducted for the 25 x 25 organization estimated the net returns to agriculture and forestry to be $13 billion, just smaller than the value of the national soybean crop.

“The climate policy uncertainty caused by the failure of Congress to effectively deal with carbon emissions is turning a win-win opportunity gain into a lose-lose for all forms of farmer produced renewable energy, national energy independence, rural economic development, green jobs creation, the environment, wind energy development, and the economy as a whole. It is time to put partisan politics aside, and in the interest of our children and generations to come, move our nation forward,” Hansen said.

Nebraska Farmers Union is the state’s second largest and oldest general farm organization representing over 5,300 farm and ranch families and the rural communities they live in. The mission of Nebraska Farmers Union is to improve the economic well being and quality of life of family farmers and ranchers, and the rural communities they live in.

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