Friday, April 2, 2021
CapitalPress.com 3
Senator’s cap-and-trade claim mystifi es farm groups
By DON JENKINS
Capital Press
University of Wisconsin
Bob Cropp, left, and Mark Stephenson, University of
Wisconsin economists.
Milk prices
expected to rise
By CAROL RYAN DUMAS
Capital Press
The futures market is
estimating Class III milk
prices will hit $18 a hun-
dredweight by May or June
and stay in that range for
several months.
“That’s a price that
probably a lot of producers
would normally be able to
live with. But I would also
say that margins are tight-
ening a lot,” said Mark
Stephenson, a dairy econ-
omist at the University of
Wisconsin.
Grain futures have been
on the rise. The corn price
seems to have plateaued,
but soybeans have still
been up, he said during the
latest “Dairy Situation and
Outlook” podcast.
Corn prices are $2 a
bushel higher than last
year, and soybeans are $5
to $6 a bushel higher, Bob
Cropp, a fellow dairy econ-
omist at the university,
said.
Given those feed costs,
a Class III price of $18 or
in the high $17s is a range
that will just about get
Blaine Bickelhaupt
a producer’s nose above
water, Stephenson said.
Cropp thinks an $18
Class III price might be a
little optimistic unless milk
production slows. USDA
is forecasting an average
Class III price of $16.90
for the year, he said.
USDA revised January
milk production to a year-
over-year increase of 2.4%.
February’s milk produc-
tion was up 2%, and there
have been some major herd
expansions in some states,
Cropp said.
“There’s a lot of milk
coming on here, which
puts some downward pres-
sure on prices,” he said.
A 2% increase year over
year is a lot of milk, and
exports would have to be
really strong to clear prod-
ucts. Foodservice demand
is picking up in the U.S.,
but the level of govern-
ment purchases won’t be
as high as last year, he said.
Domestic demand isn’t
going to take care of the
increase in dairy products.
On the positive side, U.S.
export prices are really
competitive, he said.
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OLYMPIA — A Seattle
Democrat called agriculture
an “enthusiastic supporter”
of cap-and-trade, a claim dis-
puted by several farm groups
that say they still oppose the
policy because it would raise
energy costs.
At a recent committee
meeting, Sen. Reuven Car-
lyle said agriculture was
once “one of the strongest
opponents,” but now backs
cap-and-trade
“because
they’re receiving funding for
reforestation programs.”
The Washington Farm
Bureau’s position hasn’t
changed; it opposes cap-
and-trade, director of gov-
ernment relations Tom Davis
said Monday.
“I’m not aware of any agri-
culture organization that has
been supportive,” he said. “It
(Carlyle’s remark) misrep-
resents what has been said in
the public
domain.”
Carlyle’s
spokesman
said the sen-
ator was too
busy Mon-
Washington day to com-
ment. His
Sen.
staff did not
Reuven
provide any
Carlyle
information
to support
his statement.
Carlyle, chairman of the
Senate Environment and
Energy Committee, has led
the charge to adopt cap-and-
trade, a pillar of Gov. Jay
Inslee’s climate agenda.
Manufacturers and fuel
refi neries would bid for a
declining number of permits
to emit carbon. The auctions
are expected to initially raise
roughly $500 million a year for
government spending.
Traditionally
known
as cap-and-trade, the pol-
icy is now called “cap-and-
invest” by Democrats.
“I would suggest that many
years ago the agriculture com-
munity was one of the stron-
gest opponents to a cap-and-in-
vest program and now they’re
(an) enthusiastic supporter,”
Carlyle said March 22.
Cap-and-trade potentially
pushes up the cost of electric-
ity, transportation fuels and
other products. Several agricul-
tural groups, such as the Wash-
ington Association of Wheat
Growers and Food Northwest,
have testifi ed against cap-and-
trade this session.
No farm group has signed
in to support the policy,
according to a Senate report.
Agriculture lobbyist Ben
Buchholz said he was unaware
of any Washington farm group
that supports cap-and-trade.
“I don’t know where
Sen. Carlyle came up with
that,” said Buchholz, exec-
utive director of the North-
west Agricultural Cooper-
ative Council. “We do not
support cap-and-trade.”
The cap-and-trade legis-
lation, Senate Bill 5126, has
passed two Senate commit-
tees, but has yet to be voted on
by the full Senate. If passed by
the Senate, it would go to the
House for hearings.
“We’ll be opposing it,”
said Mark Streuli, who lob-
bies for the Washington Cat-
tlemen’s Association and
trade groups representing
potato and onion farmers.
If SB 5126 becomes law,
the state would distribute
some of the money raised at
emission-permit auctions for
“natural climate resilience
solutions.”
The bill suggests farmers
could get grants for fuel-ef-
fi cient equipment and to
hold carbon in the ground.
To get money, a farmer
must pay “family sustaining
wages” and pensions, and
provide paid family leave
and “career development
opportunities.”
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