September 5, 2000

For Immediate Release:

Contact: Ben Lilliston, Institute for Agriculture and Trade Policy, 612-870-3416.

Mark Muller, Institute for Agriculture and Trade Policy, 612-870-3420.

Minneapolis – A new report released today finds that farmers could benefit financially from efforts to reduce global climate change. The report by the Institute for Agriculture and Trade Policy (IATP) found that practices such as carbon sequestration and the development of renewable energies from crops Biomass could produce significant benefits for farmers.

"Climate change may have dramatic impacts on agriculture, Farmers will be deeply affected by climate changefrom extreme temperatures to availability of water supplies," says Mark Muller, Senior Associate at IATP and lead author of the report. "But Addressing climate change not only helps protect the farmer from these changes, it can provide significant financial benefits for innovative farming practices.farmers could gain significantly financially from efforts to address climate change There is a real opportunity for rural communities to capitalize on these innovations as well."

Agriculture is responsible for an estimated 7% of total US greenhouse gas emissions. Some in the agricultural community have opposed efforts to address climate change, such as the Kyoto Protocol, because they fear increased costs for gasoline, electricity, fertilizers, and other farm inputs.

Efforts to reduce global greenhouse gas emissions have not been well accepted in the US for fear of the effects on the economy. The Kyoto Protocol, a global treaty designed to reduce greenhouse gases, has yet to be approved by the US Senate. The report found, however, that reducing greenhouse gas emissions and fossil fuel use will that initiatives, like those outlined in the Kyoto agreement, could provide direct economic benefits to farmers, and drive new development opportunities for rural communities. Some of the key opportunities for farmers detailed in the report include:

Carbon Sequestration – Many farmers are already practicing no-till farming. This practice, also known as conservation tillage, accelerates natural processes that take carbon from the atmosphere and return it to the soil. Credits for the sequestered carbon can then be traded to industries that emit fossil fuel, thereby providing a new income source for the farmer. Some US farmers are already being paid for their carbon. National farm policy could also be structured to provide incentives for these practices.

Developing New Markets for Biomass and Renewable Energies – Efforts to reduce fossil fuels will accelerate demand for renewable energies. New markets are expected to develop for biomass fuels, increasing the demand for corn, alfalfa, switchgrass, and other crops. The processing for these new fuels could take place directly in rural communities. Furthermore, wind turbines are frequently sited on agricultural lands, providing farmers with another income source.

Reconnecting Farmers with Local Markets – Rapid globalization and reduced transportation costs have resulted in increased agricultural specialization. Farmers are vulnerable to economic vagaries throughout the world, and events like the 1998 Asian economic downturn can directly affect US farm income. The US now imports a variety of foods that were once grown here. These global dependencies are facilitated by policies that do not recognize the true costs of transportation and carbon dioxide emissions. As we learn to properly value these costs, US farmers will develop a comparative advantage in reaching US consumers, the largest market for many agricultural products.

Providing Alternatives to Industrial Agriculture – The shift to an industrialized model of agriculture has resulted in fewer farms, an oversupply of crops, and eroding crop prices. Cheap fossil fuels have replaced farmer knowledge and ingenuity. Reducing fossil fuels will help foster farming practices that increase the number of farmers, diversity crops, and strengthen rural communities.

The Intergovernmental Panel on Climate Change (IPCC), an international advisory group consisting of 2,500 of the world’s leading climate change experts, recently stated that "the balance of evidence suggests that there is a discernible human influence on global climate." The IPCC concluded that the emissions of so-called greenhouse gases are trapping heat in the atmosphere. The most prevalent of these gases is carbon dioxide, which is released whenever fossil fuels are burned.

Agriculture is responsible for an estimated 7% of total US greenhouse gas emissions. Some in the agricultural community have opposed efforts to address climate change, such as the Kyoto Protocol, because they fear increased cost for gasoline, electricity, fertilizers, and other farm inputs.