Climate change and food/feed safety legislation

Another concern for the feed industry is the cap and trade component. The program is designed to reduce green- house gas emissions by putting a ceiling on the amount of emissions that the United States is allowed to emit from its industries, building and transportation sectors.

Companies that are able to operate below their emissions cap will be able to obtain and trade credits to companies that cannot reduce their emissions below their cap. In theory, the cap and trade program is an incentive for companies to invest in energy-efficient systems so they will not have to purchase carbon credits from other companies.

For the feed industry, however, implementing a cap and trade policy could have unintended consequences. One of paramount concern to the NGFA is an increase in the cost of handling, processing and exporting grain and oilseeds.
Because the commodities the grain industry produces are generally consumed a great distance away from where they originated, the industry ships major quantities by truck, barge, ocean vessel and rail. Major cost increases in transportation would make quite an impact in grains and oilseeds shippers’ bottom lines, inevitably forcing them to pass along the costs.

Since this bill has already been passed in the House, it now must be voted on in the Senate before signed into law. The NGFA, along with several other feed industry associations, is working to ensure the well-being of the industry. This piece of legislation is expected to be voted on at the end of 2009 or in 2010.