A Climate and Environmental Strategy for U.S. Agriculture" Paper presented at Forestry and Agriculture Greenhouse Gas Modeling Forum, National Conservation Training

Senate and a national program to reduce greenhouse gas emissions put in place, some studies have suggested that American farmers would suffer dire economic consequences. This report disputes that contention. We find that the implementation of policies that address climate change will not be an economic disaster for U.S. agriculture. Because energy costs are a small share of production expenses, the magnitude of price changes expected under the Kyoto Protocol would reduce net cash returns by less than one percent. With the right policy setting, net cash returns could be positive. Under the Kyoto Protocol, 42 “Annex 1 ” (developed) countries agreed to make binding commitments to reduce greenhouse gas emissions by an average of 5 percent below 1990 emissions levels during the first commitment perio