Ag Policy Blog
Chris Clayton DTN Ag Policy Editor

Tuesday Sep 8, 2009
Senate Aggies Look Again at Cap and Trade

On Wednesday the Senate Agriculture Committee will take up another hearing on the climate legislation, examining what a regulatory environment may look like under a cap-and-trade program.

The hearing comes after the CFTC announced in mid-August that the agency would be taking steps to regulate the voluntary carbon market. As Reuters reported on the CFTC proposal, Commissioner Bart Chilton "reiterated in June he expected carbon futures to become a $2 trillion market in five years, based on an assumption that the cash market would be about $200 billion."

Right now, the carbon market couldn't pay for a cup of cheap coffee. The market would be primed to take off, though, if a climate bill passed.

The hearing Wednesday will have three panels, meaning it will be an all-day affair, leading with Commodity Futures Trading Commission Chairman Gary Gensler, who will likely face tough questions from lawmakers skeptical of climate legislation. The list of those testifying can be found at the revamped Senate Ag Committee website:

http://ag.senate.gov/…

With Congress returning to Washington today, the other drama playing out in the Agriculture Committee the potential chairmanship changes that come from the passing of Sen. Ted Kennedy. Sen. Chris Dodd, D-Conn., is next in line to fill Kennedy's seat but he currently is chairman of the Senate Banking Committee and would have to give that up to take over Kennedy's chairmanship of the Senate Health Education Labor and Pensions Committee. The HELP Committee is one focal points for health-care reform. If Dodd doesn't take the spot, then the HELP chairmanship could fall to Senate Agriculture Committee Chairman Tom Harkin, D-Iowa.

Roll Call reported today that financial lobbyists are quietly pushing Dodd to take the HELP seat. They don't like some of Dodd's tough talk on financial regulations, though it should be noted we are now a full year after the financial meltdown and Congress hasn't passed a major regulatory reform bill yet. http://www.rollcall.com/…

While everyone knows who Tom Harkin is, taking over HELP would certainly boost his profile. Sunday talk shows don't exactly clamor over the Ag chairman, but the intensity of the healthcare debate would put Harkin on the top of a lot of phone lists for talk-show interviews.

If Dodd passes up HELP and Harkin takes it over, then the gavel on the Agriculture Committee passes likely passes to Sen. Blanche Lincoln, D-Ark.

Dodd and Lincoln also both already face tough reelection campaigns in 2010.

I can be found on Twitter at chrisclaytonDTN.

Posted at 06:57AM CDT Sep 8, 2009 by Chris Clayton
Comments (1)
Grassley, Conrad and Nelson: Senators for Government Insurance for Farmers but not the needy in Farm States? As these powerful Senators restrain Obama from true meaningful Healthcare reform and health insurance for all. The insurance track record of the three Conservative Senators needs to be examined by the public and President Obama. For you see, the three senators who question or don’t want a government option for Healthcare reform see highly subsidized Federal crop insurance in a much different light. Joined by most of the Blue Dog Democrats in the House and fellow Farm State Senators. For they all see “Government Crop Insurance,” as great. Supporting it financially since 2001 by paying about 58% of the Farmers annual premium with taxpayer dollars. While making it available to all farmers, big and small, rich and poor. Making Government run crop insurance a major perk, prized by the smallest part time farmer, to the largest fulltime producers who grow most of today’s crops. Yet the crop insurance subsidies were not even affected by the prosperity of record grain price caused by the energy boom! Even after USDA data had shown total crop values jumped from $44 billion in 2005 to $90 billion in 2008. Congress still failed to end premium subsidies to a booming industry. As USDA data confirmed today’s fulltime farmers are Millionaires and Multi-Millionaires. Which sadly is not a politically correct statement in America today, just financial accurate but kept from the debate and the public’s eyes! So the premium supports/subsidies continued for the record 2008 and 2009 crops. Records to-date show in these two boom years Iowa Farmers received $910,265,318 million to reduce premiums, Nebraska Farmers $723,877,845 million and North Dakota Farmers 1,052,886,610 billion. For a total of $2.7 billion dollars in premium reductions by these powerful Senators, who brought bacon for their states wealthiest but not the needy without health insurance! Using the same Census data Obama reported on in a recent speech to taxpayers that stated 46 million uninsured in the United States, if broken down for the three states shows the following! If Senator Grassley had delivered the same total premium subsidy reduction for the past two years, his state’s uninsured family of four would have had an annual premium subsidy of $6620. Senator Nelsons Nebraska family of four would have had $6240 premium reduction for the past two years. While Senator Conrad, Mr. Coop would have delivered $34,520/year to the uninsured family of four in North Dakota. By: Alan Roebke (REB-key) Alexandria Minnesota, a policy analyst living in the world of the blind, death and Dumb who need health insurance but have no voice! AHR
Posted by Alan Roebke at 06:03PM CDT Sep 8, 2009
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