Farm operations could be severely disrupted. Restrictions on planting, cultivation and harvesting would interfere with farm management plans which have been designed to reduce production costs, maximize yields and conserve farmland. For example, prescriptive cropping practices designed to reduce greenhouse gas emissions may not be compatible with crop rotation programs. Integrated pest management programs, which reduce pesticide use through tillage and crop rotation, could also be jeopardized. Fuel and energy and cost increases resulting from the Kyoto agreement could deal farmers an especially heavy blow.
Energy costs are a major part of most farmers' production expense.
The American Petroleum Institute has projected increased prices for gasoline, diesel fuel and electricity by 50 per cent or more, depending on the emission targets that are prescribed. The administration's estimates have been lower, but the U.S. Commerce Department agreed that capping carbon dioxide emissions at 1990 levels could require the equivalent of a 25-cent gas tax. Fuel cost increases, even at these levels, would impose a big hardship on U.S. farmers. A study by American Farm Bureau Federation economists projects losses in net farm income from 13 to 85 percent, depending on the specific commodity and fuel price assumptions. Inc. Results of both economic studies are submitted with my statement.