Weighing the price of clean energy

Graves says pending legislation would hurt rural America

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Mike Easter a contractor for MFA Agri Services sprays herbicide on a farm south of St. Joseph. MFA manager Jim Veraguth says farmers have to calculate the cost of energy compared to the price their crops will bring.

Farmers plant a crop, but they hope to reap a balance. With energy concerns, Jim Veraguth believes, that becomes tricky.

Mr. Veraguth manages MFA Agri Services in St. Joseph and sees farmers in constant calculation on the fluctuating demand for corn to make ethanol and the shifting profitability of acres when weighing fertilizer costs against the price brought for the crop.

"It's just an all-tangled mess whenever you start looking at that," he said. "When it gets right down to it, it goes back to what's the cost of that barrel of oil."

U.S. Rep. Sam Graves insists the impact of energy costs will land disproportionately on farmers and rural America with passage of clean energy legislation now before Congress.

Moreover, the Northwest Missouri Republican contends the Waxman-Markey Bill, which might move to the full House next week, uses its stated purpose (to limit carbon emissions and slow climate change) as a disguise for an energy tax that will burden American businesses and shift jobs overseas.

"China is looking at us and laughing. It's going to make them more competitive," the lawmaker said Friday from his Washington office. "We are making ourselves less competitive."

Mr. Graves sits as one of three co-chairs of the Rural America Solutions Group, a collection of representatives engaged in disseminating information countering the energy legislation. It released a breakdown this week showing Missouri electricity consumers would suffer a $428 million negative impact from the bill in 2012.

Kansans would realize a $206.8 million additional power cost that year. At the same time, states on the east and west coasts would show cost benefits.

Rural areas take a greater hit, Mr. Graves said, because of the energy-intensive nature of farming, from the manufacture of products like fertilizer to the operation of field machinery to the transportation of goods to market.

Farmers, he said, buy their inputs at escalating retail prices, sell their output at see-sawing wholesale prices and have no chance to pass along increased costs to consumers. "It's going to squeeze them down really hard," the lawmaker said.

The Rural America Solutions Group has advocated an alternative energy plan that includes bringing 100 new nuclear plants on line in the next 20 years, drilling for oil in the Arctic coastal plain and offshore on the intercontinental shelf and making permanent the tax credits for renewable fuels.

Mr. Graves also said technology allows for the cleaner burning of coal, an energy source critical to the Midwest.

The lawmaker voiced little optimism that opposition to the Waxman-Markey bill might prevail. He added, though, "I would be surprised if very many rural Democrats vote for this thing."

Ken Newton can be reached

at kenn@npgco.com.

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sunny13 says...

Graves is spot-on with his assessment of the cap-and-trade bill (disguised as the Waxman-Markey bill); rural Democrats would be idiots to vote for this.

Actually, if this bill passes, costs will reverberate throughout the economy and all taxpayers will be hit pretty hard; not just farmers or middle America.

June 20, 2009 at 9:08 a.m. ( | suggest removal )

deerslayer1967 says...

This is why our electric bills just went up. Paying money to fund companies going "green". "going green" sounds good, but it comes at a cost. Think of it in these terms.... 1 kilowatt hour costs 3 cents from coal...6 cents from nuclear....10 cents from windpower Solar thermal costs around 15 to 17 cents a kilowatt hour, according to statistics from Schott, a German company that makes solar thermal equipment. Here's the link just to show you I'm not talking out of my arse.

http://news.cnet.com/Shrinking-the-co...

go green. it will cost. drill in the antarctic,I say. France has the best idea of nuclear...80% of their electricity comes from nuclear power. what do you do with the waste? dispose of it in an african nation that needs money.

June 20, 2009 at 9:05 p.m. ( | suggest removal )