Farming is the life-blood of our State and Country and now Washington, in an attempt to curb CO2 gases and to reduce global warming, has proposed a massive new tax on energy through legislation. The Heritage Foundation analysis has calculated that farm profits would be reduced in 2012 by 28% and by 57% by 2035 under the Waxman-Markey Bill. These reductions would be a direct result of the higher costs of natural-gas-derived fertilizer and increased energy costs.

Even though this legislation has stalled in the Senate, the Environmental Protection Agency (EPA) has stepped forward to say they will implement new regulations on their own without passage of the legislation. These new regulations pose a serious threat to Michigan’s agricultural interests. 

Under a ruling by the U.S. Supreme Court the EPA has the authority to regulate CO2 emissions for motor vehicles under the Clean Air Act. As a result of that ruling they have extended it to apply to farming operations. Additionally, permit and other requirements would also be a part of the compliance process for entities using fossil fuels, such as small businesses, commercial properties, and agricultural operations.

Of concern, according to American Farm Bureau, are the Title V provisions of the Clean Air Act's operating permits program, as well as the pre-construction permitting program known as Prevention of Significant Deterioration (PSD). According to the U.S. Department of Agriculture, Title V would apply to "dairy facilities with over 25 cows, beef cattle operations of over 50 cattle, swine operations with over 200 hogs, and farms with over 500 acres of corn."

The EPA estimates the first-year cost of each Title V permit would be $46,500 and the PSD cost of $84,500. The EPA has tried to avoid the impact on small businesses and farms (at least temporarily) by increasing the threshold for CO2 emissions from 250 to 25,000 tons but these temporary exclusions would only apply until 2016.

With the added costs for fuel, fertilizer, and permits it would seem that the future of Michigan’s agricultural business is in grave danger. Can we afford to lose another industry critical to Michigan’s economic future?

Vote for those people who will protect Michigan’s agricultural interests this fall!

(Submitted for publication to the Dewitt/Bath Review, The Clinton County News, The Laingsburg Indpendent & The Perry Indpendent on April 7, 2010)

(Published in the DeWitt/Bath Review, The Laingsburg Independent & The Perry Independent on April 11, 2010 )
