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EPA advises no ‘cow tax’ will be levied on farmers

By TIM THORNBERRY
Kentucky Correspondent

FRANKFORT, Ky. — From misinformation to a lack of information, U.S. cattlemen have been growing more concerned about an impending “cow tax.”

The Internet is full of comments and attacks on such an idea, coming from nearly every agricultural blog and publication across the country, but is there really going to be a cow tax? That “tax” is actually a permit fee that would be issued by the Environmental Protection Agency (EPA) if a proposal concerning greenhouse gas (GHG) emissions goes into effect.

The regulation would fall under provisions of the Clean Air Act (CAA).

This controversy came to light last year with the filing of an Advanced Notice of Proposed Rulemaking by the agency to solicit comments on ways to regulate GHG emissions from a variety of sources including those in the agriculture sector.

The USDA said that could include small farming operations.
After the proposal was made, a letter from several agencies including the USDA was sent to then Administrator of the Office of Information and Regulatory Affairs Susan Dudley.

In that letter, Former USDA Secretary Ed Schafer wrote, “If GHG emissions from agricultural sources are regulated under the CAA, numerous farming operations that currently are not subject to the costly and time-consuming Title V permitting process would, for the first time, become covered entities. Even very small agricultural operations would meet a 100-tons-per-year emissions threshold.
“For example, dairy facilities with over 25 cows, beef cattle operations of over 50 cattle, swine operations with over 200 hogs, and farms with over 500 acres of corn may need to get a Title V permit. It is neither efficient nor practical to require permitting and reporting of GHG emissions from farms of this size.

“Excluding only the 200,000 largest commercial farms, our agricultural landscape is comprised of 1.9 million farms with an average value of production of $25,589 on 271 acres. These operations simply could not bear the regulatory compliance costs that would be involved.”

Since then the idea or fear of the said cow tax just won’t go away much to the surprise of the EPA. Cathy Milbourn, an EPA spokesperson said she’s not sure where the idea of a tax on livestock started. In fact, she added, the EPA can’t levy taxes anyway.

“There is no planned tax on livestock emissions. EPA just proposed the first comprehensive national system for reporting emissions of greenhouse gases. No part of this proposal even requires emissions reporting from livestock. There is no ‘cow tax,’ period. We hope to finally put an end to this erroneous issue,” said a statement from the EPA.

So far, the idea is still alive and well. Some lawmakers aren’t taking a chance of it starting with the introduction of Senate Bill 527 by U.S. Senators John Thune (R-S.D.) and Charles E. Schumer (D-N.Y.) to prevent such a tax from happening. A release from Thune’s office stated the bill would “once and for all prevent the government from imposing an onerous ‘cow tax’ on farmers across the country.”

Farm officials and organizations around the country have rallied around the bill including the American Farm Bureau Federation (AFBF) and Kentucky Agriculture Commissioner Richie Farmer.
“The concerns farmers raise are real,” said AFBF President Bob Stallman. “They are all the more pressing now as the agency is reportedly looking at potentially regulating greenhouse gases under the Clean Air Act.”

Farmer has asked Kentucky’s U.S. Senators Mitchell McConnell and Jim Bunning to support the measure.

“I believe that this legislation is necessary to protect the livelihood of Kentucky’s animal agriculture producers, who collectively are responsible for nearly $3 billion in farm sales in the Commonwealth, and whose continued prosperity is essential for the future of rural Kentucky,” Farmer wrote in a letter to the senators.
Even on a local basis, the thought of more costs to farmers has many on edge.

Tommy Yankey, a University of Kentucky County Extension Agent said that if such a rule came to be, many producers would get out of the business.

“Many farmers, especially the small farmers have told me if the cow tax passes they will sell the cows. The profit margin is currently small in this economic climate and they have said they will just get out altogether,” said Yankey. “One good volcanic eruption will emit more gas into the air than all of U.S. cattle. But as I’ve heard all my life, common sense is not so common. A tax of this nature just proves the point.”

It has become evident that the state of the economy and the already enormous pressure on farmers to stay afloat has helped fuel the fire in this issue. It is also probably safe to say that the word “tax” has been added along the way to gain attention but the EPA insists that a fee of this nature is not on their radar.

However, the old saying “an ounce of prevention, is worth a pound of cure” seems to be the attitude many are taking now. The bill has been referred to the Committee on Environment and Public Works.

3/25/2009