Legislation proposed in Congress that includes a cap-and-trade plan to reduce carbon dioxide by 17 percent below 2005 levels in 2020 and by 83 percent below 2005 levels in 2050 would hurt farmers' incomes and raise farm input costs, according to the Heritage Foundation.
Economists at the Heritage Foundation's Center for Data Analysis said farm income would drop by a total of $8 billion in 2012, $25 billion in 2024 and $50 billion in 2035. Construction costs of farm buildings would go up by 5.5 percent in 2025 and 10 percent by 2034, the foundation said on its website.
Other cost such as diesel and gasoline would grow 58 percent higher and electric rates 90 percent higher.
The analysts said higher energy cost for farmers to power farm equipment and for the construction of buildings would see costs go up by 4.5 percent in 2024 and by over 10 percent in 2034 because of the upward pressure cap and trade puts on energy prices.
The price of tractors and other farm equipment will increase as well, the foundation said.