Agriculture Law: RL33898
Agriculture Law: RL33898
Climate Change:
The Role of the U.S. Agriculture Sector
March 6, 2007
Renée Johnson
Analyst in Agricultural Economics
Resources, Science, and Industry Division
Climate Change:
The Role of the U.S. Agriculture Sector
Summary
The agriculture sector is a source of greenhouse gas (GHG) emissions, which
many scientists agree are contributing to observed climate change. Agriculture is also
a “sink” for sequestering carbon, which might offset GHG emissions by capturing
and storing carbon in agricultural soils. The two key types of GHG emissions
associated with agricultural activities are methane (CH4) and nitrous oxide (N2O).
Agricultural sources of CH4 emissions mostly occur as part of the natural digestive
process of animals and manure management at livestock operations; sources of N2O
emissions are associated with soil management and fertilizer use on croplands. This
report describes these emissions on a carbon-equivalent basis to illustrate
agriculture’s contribution to total national GHG emissions and to contrast emissions
against estimates of sequestered carbon.
Most land management and farm conservation practices can help reduce GHG
emissions and/or sequester carbon, including land retirement, conservation tillage,
soil management, and manure and livestock feed management, among other
practices. Many of these practices are encouraged under most existing voluntary
federal and state agricultural programs that provide cost-sharing and technical
assistance to farmers. However, uncertainties are associated with implementing these
types of practices depending on site-specific conditions, the type of practice, how
well it is implemented, the length of time practice is undertaken, and available
funding, among other factors. Despite these considerations, the potential to reduce
emissions and sequester carbon on agricultural lands is reportedly much greater than
current rates.
The debate in Congress over whether and how to address possible future climate
change is intensifying. Historically, legislative initiatives have not specifically
focused on emissions reductions in the agriculture sector. Instead, emissions
reductions and carbon uptake are incidental benefits of existing voluntary
conservation programs that provide financial and technical assistance to implement
certain farm management practices, predominantly for other production or
environmental purposes. The pending 2007 farm bill could expand the scope of these
types of initiatives to more broadly encompass the agriculture sector in overall efforts
to address climate change. Policies and incentives that might further encourage
farmers to adopt such practices include expanding cost-sharing and technical
assistance under existing conservation programs, low-cost loans, grants, incentive
payments, and tax credits.
Contents
Agricultural Emissions and Sinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Source of National Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Agricultural GHG Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Direct GHG Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Other Types of Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Total GHG Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Uncertainty Estimating Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Other Estimated Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sources of GHG Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Potential for Additional Reductions . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Agricultural Carbon Sinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Carbon Loss and Uptake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Total Carbon Sequestration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Estimated Emission Offsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Uncertainty Estimating Carbon Sinks . . . . . . . . . . . . . . . . . . . . . . . . . 10
Potential for Additional Uptake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Per-Unit Value Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Enhancing Carbon Sinks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Appendix: Primer on the Role of the U.S. Agriculture Sector in the Climate Change
Debate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
List of Figures
Figure 1. Agricultural GHG Emissions, Average 2000-2004 . . . . . . . . . . . . . . . . 7
Figure 2. Carbon Sequestration in Agricultural Soils . . . . . . . . . . . . . . . . . . . . . 10
Figure 3. USDA Conservation Spending, FY2005 . . . . . . . . . . . . . . . . . . . . . . . 18
List of Tables
Table 1. Methane (CH4) and Nitrous Oxide (N2O) Emissions and
Carbon Sinks, Agricultural Activities, 1990-2004 . . . . . . . . . . . . . . . . . . . . 5
Table 2. Representative Carbon Sequestration Rates . . . . . . . . . . . . . . . . . . . . . 13
Table 3. Conservation and Land Management Practices . . . . . . . . . . . . . . . . . . . 17
Climate Change:
The Role of the U.S. Agriculture Sector
The debate in Congress over whether and how to address possible future climate
change is intensifying. In the 109th Congress, more than 100 bills, resolutions, and
amendments were introduced specifically addressing climate change. The role of the
U.S. agriculture sector is often included in this debate. Agriculture is a source of
greenhouse gas (GHG) emissions, which many scientists agree are contributing to
observed climate change. Agriculture is also a “sink” for sequestering carbon, which
partly offsets these emissions. Carbon sequestration (the capture and storage of
carbon) in agricultural soils can be an important component of a climate change
mitigation strategy, limiting the release of carbon from the soil to the atmosphere.
The anticipated 2007 farm bill debate1 could expand the scope of ongoing
climate change initiatives to more broadly encompass the agriculture sector,
promoting conservation and land management practices that could further reduce
emissions and sequester carbon in the sector. Policies and incentives that might
further encourage farmers to adopt such practices include expanding cost-sharing and
technical assistance under existing conservation programs, expanding existing
research programs and demonstration projects, and expanding access to low-cost
loans, loan guarantees, grants, incentive payments, and income tax credits.
This report is organized in three parts. First, it discusses the extent of GHG
emissions associated with the U.S. agriculture sector, and cites current and potential
estimates for U.S. agricultural soils to sequester carbon and partly offset national
GHG emissions. Second, the report describes the types of land management and farm
conservation practices that can reduce GHG emissions and/or sequester carbon in
agricultural soils, highlighting those practices that are currently promoted under
existing voluntary federal agricultural programs. Third, the report discusses the types
of questions that may be raised regarding the role of the U.S. agriculture sector in the
1
The current omnibus farm bill, the Farm Security and Rural Investment Act of 2002 (P.L.
107-171), and many of its provisions expire in 2007. Hereafter referred to as “farm bill.”
CRS-2
broader climate change debate, and also discusses the role of climate-related issues
(e.g., GHG emissions reductions and carbon sequestration) in the context of farm
program legislation that the 110th Congress may consider. The Appendix provides a
summary primer of the key topics presented in this report.
This report does not address the potential effects of global climate change on
U.S. agricultural production. Such effects may arise because of increased climate
variability and incidence of global environmental hazards, such as drought and/or
flooding, pests, weeds, and diseases, or temperature and precipitation changes that
might cause locational shifts in where and how agricultural crops are produced.2
This report also does not address how ongoing or anticipated initiatives to
promote U.S. bioenergy production may effect efforts to reduce GHG emissions
and/or sequester carbon, such as by promoting more intensive feedstock production
and by encouraging fewer crop rotations and planting area setbacks, which could both
raise emissions and reduce carbon uptake.
2
See CRS Report RL33817, Climate Change: Federal Expenditures, by Jane Leggett.
3
EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2004, April 2006, at
[http://epa.gov/climatechange/emissions/usinventoryreport.html].
4
USDA, U.S. Agriculture and Forestry Greenhouse Gas Inventory: 1990-2001, TB1907,
(continued...)
CRS-3
4
(...continued)
March 2004, at [http://www.usda.gov/oce/global_change/gg_inventory.htm].
5
Estimates in this report are converted from EPA-reported data expressed as equivalent CO2
units assuming a multiplier of 0.2727 to yield MMTCE. EPA’s data are reported in
teragrams, or million metric tons. “Carbon-equivalents” equate an amount of a GHG to the
amount of carbon that could have a similar impact on global temperature.
6
The principal gases associated with climate change from human activities are CO2, CH4,
N2O, and ozone-depleting substances and chlorinated and fluorinated gases, such as
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. See CRS Report RL33849,
Climate Change: Science and Policy Implications, by Jane Leggett; and Intergovernmental
Panel on Climate Change (IPCC), Climate Change 2001, at [http://www.ipcc.ch/pub/
wg1TARtechsum.pdf].
7
IPCC, Climate Change 2001, at [http://www.ipcc.ch/pub/wg1TARtechsum.pdf]; EPA’s
2006 Inventory, Table ES-2. Methane’s ability to trap heat in the atmosphere is 21 times that
of CO2; nitrous oxide is 310 times that of CO2 (measured over a 100-year period).
8
USDA, U.S. Agriculture and Forestry Greenhouse Gas Inventory: 1990-2001, TB1907,
Figure 3-6, March 2004, at [http://www.usda.gov/oce/global_change/gg_inventory.htm].
Nitrogen-fixing crops refer to beans, legumes, alfalfa, and non-alfalfa forage crops.
9
EPA’s 2006 Inventory, Table ES-2. Other major CH4 sources were landfills, natural gas
systems, and coal mining. Mobile combustion was the second largest source of N2O.
CRS-4
organic compounds from field burning of agricultural residues.10 These emissions are
not included in EPA’s annual Inventory estimates because they contribute only
indirectly to climate change by influencing tropospheric ozone, which is a
greenhouse gas. Agricultural activities may also release other types of air emissions,
some of which are regulated under the federal Clean Air Act, including ammonia,
volatile organic compounds, hydrogen sulfide, and particulate matter.11 These types
of emissions are typically not included in proposals to limit GHG emissions.
The sector also emits CO2 and other gases through its on-farm energy use, for
example, through the use of tractors and other farm machinery. These emissions are
generally aggregated along with other transportation and industrial emissions in the
“energy” sources, where they constitute a very small share of the overall total.
Therefore, these emissions are not included in reported estimates for the U.S.
agriculture sector.
Recent trends in GHG emissions associated with the U.S. agriculture sector
suggest emissions reductions in recent years. In 2004, emissions from agricultural
activities are lower compared to estimates for 1995 and 2000, and also lower than the
most recent five-year average (Table 1).
10
EPA’s 2006 Inventory, Table 6-2. NOX and CO influence the levels of tropospheric
ozone, which is both a local pollutant and a GHG (called “indirect” greenhouse gases). Their
contributions cannot be measured by emissions.
11
See CRS Report RL32948, Air Quality Issues and Animal Agriculture: A Primer, by
Claudia Copeland. Particulate emissions may also contribute to climate change, but their
influence is predominantly local, short-term and poorly quantified.
12
Other contributing sources include wood biomass and ethanol use (3%), nonenergy use
of fuel (2%), and landfills (2%); by sector, industrial processes (5%) and waste (3%) are
other main sources of emissions (EPA’s 2006 Inventory, Tables ES-2 and ES-4).
CRS-5
%Total Emissions,
Agriculture d 7.2% 7.6% 6.6% 6.2% 6.5%
%Total Sinks, Agriculture 5.9% 7.0% 5.6% 5.8% 5.8%
13
Land use and forestry activities account for less than 1% of total estimated GHG
emissions in the United States (EPA’s 2006 Inventory, Table ES-4).
CRS-6
and mobile combustion averaged about 14 MMTCE per year14 (Table 1). These
emissions are generally aggregated with emissions for the transportation and
industrial sectors. Even if these emissions were included with other attributed GHG
emissions for the agriculture sector, this would not substantially raise agriculture’s
overall share of total GHG emissions.
14
EPA’s 2006 Inventory, Table 2-14.
15
Refers to livestock (cattle, sheep, goats, and buffalo) that have a four-chambered stomach.
In the rumen chamber, bacteria breaks down food and degrades methane as a byproduct.
16
R. A. Leng, “Quantitative Ruminant Nutrition — A Green Science,” Australian Journal
of Agricultural Research, 44: 363-380. Feed efficiency is based on both fermentive
digestion in the rumen and the efficiency of conversion of feed to output (e.,g, milk, meat)
as nutrients are absorbed.
17
Although carbon is released as well, it is predominantly absorbed again within a year as
part of the cropping cycle, and so is assumed to be net zero emissions unless some goes into
long-term soil carbon content.
CRS-7
fermentation (25%), manure management (13%), rice cultivation (2%), and field
burning of agricultural residues (less than 1%). About 60% of agriculture emissions
are associated with the crop sector and about 40% with the livestock sector (Figure
1).
Enteric
Ag Soil Mgmt
Fermentation
(N2O) 60%
(CH4) 25%
18
D. C. Reicosky, “Environmental Benefits of Soil Carbon Sequestration,” USDA, at
[http://www.dep.state.pa.us/dep/DEPUTATE/Watermgt/wsm/WSM_TAO/InnovTechFor
um/InnovTechForum-IIE-Reicosky.pdf].
19
USDA, “Conservation Tillage Firmly Planted in U.S. Agriculture,” Agricultural Outlook,
March 2001; USDA, “To Plow or Not to Plow? Balancing Slug Populations With
(continued...)
CRS-8
19
(...continued)
Environmental Concerns and Soil Health,” Agricultural Research, October 2004;
Conservation Technology Information Center (CTIC), “Conservation Tillage Facts,” at
[http://www.conservationinformation.org/?action=learningcenter_core4_convotill].
20
An enclosed tank that promotes decomposition using anaerobic conditions and naturally
occurring bacteria, while producing biogas as a byproduct that can be used as energy.
21
See CRS Report RL32948, Air Quality Issues and Animal Agriculture: A Primer; and
CRS Report RL31851, Animal Waste and Water Quality: EPA Regulation of Concentrated
Animal Feeding Operations (CAFOs), by Claudia Copeland.
22
R. Pillars, “Farm-based Anaerobic Digesters,” Michigan State University Extension, at
[http://web2.msue.msu.edu/manure/FinalAnearobicDigestionFactsheet.pdf].
23
EPA, Development Document for the Final Revisions to the NPDES Regulation and the
Effluent Guidelines for Concentrated Animal Feeding Operations, January 2003.
24
C. Henry and R. Koelsch, “What Is an Anaerobic Digester?” University of Nebraska,
Lincoln, at [http://manure.unl.edu/adobe/v7n10_01.pdf]; and Pennsylvania State University,
“Biogas and Anaerobic Digestion,” at [http://www.biogas.psu.edu/]. For optimum operation,
anaerobic digesters must be kept at a constant, elevated temperature, and any rapid changes
in temperature could disrupt bacterial activity.
CRS-9
25
Mostly Section 9006 and Section 6013 of the farm bill (P.L. 107-171), but also under
other farm bill cost-share programs. CRS communication with USDA staff.
26
As of 2005. EPA, AgStar Digest, Winter 2006, at [http://www.epa.gov/agstar/].
27
R. A. Leng, “Quantitative Ruminant Nutrition — A Green Science,” Australian Journal
of Agricultural Research, 44: 363-380; H. Steinfeld, C. de Haan, and H. Blackburn,
Livestock-Environment Interactions, Issues and Options, chapter 3 (study commissioned by
the Commission of the European Communities, United Nations, and World Bank), at
[http://www.virtualcentre.org/es/dec/toolbox/FAO/Summary/index.htm].
28
U.S. Geological Survey (USGS), “Carbon Sequestration in Soils,” at [http://edcintl.cr.
usgs.gov/carbonoverview.html].
CRS-10
29
Estimated from net forest growth, increased forest area, accumulated forest carbon stocks,
growth in urban trees, and also landfilled yard trimmings (EPA’s 2006 Inventory, Table ES-
5). See also CRS Report RL31432, Carbon Sequestration in Forests, by Ross Gorte.
CRS-11
Potential for Additional Uptake. USDA reports that the potential for carbon
uptake in agricultural soils is much greater than current rates. USDA forecasts that
the amount of carbon sequestered on U.S. agricultural lands will nearly double from
current levels by 2012, adding roughly an additional 11 MMTCE of sequestered
carbon attributable to the sector.31 This additional uptake is expected through
improved soil management (roughly 60%), improved manure and nutrient
management (about 30%), and additional land-retirement sign-ups (about 10%).
30
See, for example, T. A. Butt and B. A. McCarl, “Implications of Carbon Sequestration for
Landowners,” 2005 Journal of the American Society of Farm Managers and Rural
Appraisers; Government Accountability Office (GAO), Conservation Reserve Program:
Cost-Effectiveness Is Uncertain, March 1993; H. Feng, J. Zhao, and C. Kling, “Carbon: The
Next Big Cash Crop,” Choices, 2ndquarter 2001; and H. Feng, C. Kling, and P. Glassman,
“Carbon Sequestration, Co-Benefits, and Conservation Programs,” Choices, Fall 2004.
31
W. Hohenstein, “USDA Activities to Address Greenhouse Gases and Carbon
Sequestration,” presentation to Senate Energy Committee staff, February 15, 2007.
CRS-12
Other longer term estimates from USDA report the potential for net increases
in carbon sequestration ranging from 10 to 160 MMTCE per year in the United
States, or roughly 2-14 times current levels.32 Comparable estimates reported by EPA
forecast a higher sequestration potential for the U.S. agriculture sector, ranging from
40 to 270 MMTCE per year.33 EPA also reports additional sequestration potential
from livestock manure management, biofuels substitution, and other farm
management practices. USDA reports that other studies have forecast an even greater
potential to sequester carbon in the United States, ranging from about 90 to 320
MMTCE annually. Various estimates will differ depending on the extent that
estimates may include sequestration activities for the forestry sector.
Under USDA’s forecast, an additional carbon uptake of 160 MMTCE per year
would more than offset the agriculture sectors’ annual GHG emissions, or offset 8%
of total national emissions from all sources. Currently, carbon uptake in agriculture
soils sequesters under 1% of total national GHG emissions annually (Table 1).34
32
USDA, Economics of Sequestering Carbon in the U.S. Agricultural Sector, April 2004.
33
EPA, “Greenhouse Gas Mitigation Potential in U.S. Forestry and Agriculture,” Tables 4-
10 and 4-5, November 2005, at [http://www.epa.gov/sequestration/greenhouse_gas.html].
Annualized over 15-years. Converted from EPA-reported CO2 equivalent.
34
Currently, about 11% of total GHG emissions are sequestered annually through the U.S.
agriculture and forestry sectors, with the bulk sequestered through growth in forest stocks.
35
USDA, Economics of Sequestering Carbon in the U.S. Agricultural Sector, April 2004;
measured by the amount of carbon that could be measured over a 15-year time period across
a range of costs. The associated total cost to sequester carbon across this range is estimated
from $0.95 billion to $2 billion per year.
36
EPA, “Greenhouse Gas Mitigation Potential in U.S. Forestry and Agriculture,” Table 4-
10, November 2005, at [http://www.epa.gov/sequestration/greenhouse_gas.html]. Converted
(continued...)
CRS-13
The low end of this range is associated with sequestration in agricultural soils and
with soil management practices; high-end values are associated with afforestation,
or converting open land into a forest by planting trees or their seeds.
Improved Soil and Land Management. The main carbon sinks in the
agriculture sector are cropland conversion and soil management, including improved
manure application.37 More than half of all carbon sequestered on U.S. agricultural
lands is through voluntary land retirement programs and programs that convert or
restore land (e.g., conversion to open land or grasslands, conversion to cropland,
restoration of grasslands or wetlands, etc.). Undisturbed open lands, grasslands and
wetlands can hold carbon in the soil both underground in the root structure and above
ground in plant biomass. The amount of carbon sequestered will vary by the type of
land management system. Land retirement and grassland conversion stores between
0.3 and 0.5 metric tons (mt) of carbon per acre annually.38 Compared with other types
of systems, this is about twice the amount of carbon stored through tree plantings and
wetlands conversion, and about four times that stored on croplands.39
36
(...continued)
from a reported range of $5-$30 per CO2 equivalent.
37
USDA, U.S. Agriculture and Forestry Greenhouse Gas Inventory: 1990-2001, TB1907,
Figure 3-8, March 2004, at [http://www.usda.gov/oce/global_change/gg_inventory.htm].
38
EPA, “Greenhouse Gas Mitigation Potential in U.S. Forestry and Agriculture,” Table 2-1,
November 2005, at [http://www.epa.gov/sequestration/greenhouse_gas.html]. Converted
from reported CO2 equivalent units.
39
Bongen, A.,”Using Agricultural Land for Carbon Sequestration,” Purdue University, at
[http://www.agry.purdue.edu/soils/Csequest.PDF]. 1999 data for carbon storage in Indiana.
40
USDA, U.S. Agriculture and Forestry Greenhouse Gas Inventory: 1990-2001, TB1907,
(continued...)
CRS-14
Improved tillage practices improve biomass retention in soils and reduce soil
disturbance, thereby decreasing oxidation. The amount of carbon sequestered will
vary by the type of tillage system: reduced tillage stores between 0.2-0.3 mt of carbon
per acre annually.41 Among conservation tillage practices, no-till stores about 30%
more than the amount of carbon stored by reduced tillage but more than five times
that stored on intensive tilled croplands. (Conservation tillage practices are explained
above, in the section on “Potential for Additional Reductions”).
Conservation Programs
Agricultural conservation practices broadly include land management,
vegetation, and structures that can reduce GHG emissions and/or sequester carbon
in the agriculture sector, such as:
40
(...continued)
March 2004, at [http://www.usda.gov/oce/global_change/gg_inventory.htm]; USDA,
“Depositing Carbon in the Bank: The Soil Bank, That Is,” Agricultural Research, Feb. 2001.
41
EPA, “Greenhouse Gas Mitigation Potential in U.S. Forestry and Agriculture,” Table 2-1,
November 2005, at [http://www.epa.gov/sequestration/greenhouse_gas.html]. Converted
from reported CO2 equivalent units.
42
See Iowa Farm Bureau’s carbon credit project at [http://www.iowafarmbureau.com].
CRS-15
The fact that the types of conservation and land management practices being
promoted under existing agricultural conservation programs may also lower GHG
emissions and increase carbon uptake in agricultural soils should be regarded as an
incidental benefit of these programs. With few exceptions, these types of
conservation and land management programs were not initiated for the purpose of
reducing GHG emission or sequestering carbon, and the eligibility requirements
under these programs do not explicitly require emissions reductions or carbon
sequestration as objectives or selection criteria for participation. These programs are
generally designed to address site-specific improvements based on a conservation
plan developed with the assistance of USDA or state extension technical and field
staff that considers the goals and land resource base for an individual farmer or
landowner. Such a conservation plan is typically a necessary precursor to
participating in USDA’s conservation programs.
43
For a list of the USDA programs, see USDA, “Farm Bill, Title II: Conservation,” at
[http://www.ers.usda.gov/Features/Farmbill/titles/titleII conservation.htm].
CRS-16
Renewable energy projects receive additional program funding across three farm
bill titles: Title II (Conservation), Title IX (Energy), and Title VI (Rural
Development). Other funding is also available through other federal programs.45 In
addition to cost-sharing programs provided under Title II programs, two other
important renewable energy programs under the 2002 farm bill are under Title IX
(Section 9006) and Title VI (Section 6013). Section 9006 authorized loans, loan
guarantees, and grants to farmers, ranchers, and rural small businesses to purchase
renewable energy systems and make energy efficiency improvements. Section 6013
authorized the business and industry program to make loans and loan guarantees for
renewable energy systems, including wind energy systems and anaerobic digesters.
Section 9006 and Section 6013 under the 2002 farm bill, as well as other cost-share
programs, account for the majority of federal program spending to support
construction of anaerobic digesters in the livestock sector.46 Limited information
indicates that USDA funded eight projects totaling more than $60 million under
Section 601347 and provided another $20 million in funding assistance under Section
600948 for anaerobic digesters (FY2002-FY2005).
44
Primary efforts under FLEP are afforestation and reforestation, improved forest stand,
constructing windbreaks, and riparian forest buffers.
45
See CRS Report RL32712, Agriculture-Based Renewable Energy Production, by Randy
Schnepf; and CRS Report RL33572, Biofuels Incentives: A Summary of Federal Programs,
by Brent Yacobucci.
46
CRS communication with USDA staff, February 8, 2007.
47
USDA, “Farm Bill Forum: Rural Development Title,” March 2006, at [http://www.usda.
gov/documents/RURAL_DEVELOPMENT_TITLE.pdf].
48
USDA, “USDA Funding Assistance for Rural Renewable Energy and Energy Efficiency:
(continued...)
CRS-17
EQIP, Crop diversity through crop rotations Reduces erosion/water needs. Sequestration
CSP, and cover cropping Improves soil/water quality.
AMA
Efficient nutrient (nitrogen) Improves water quality. Saves Sequestration,
management, fertilizer application expenses, time, and labor. emission reduction
Feed management (e.g., raise feed Improves water/air quality. More Emission reduction
EQIP efficiency, dietary supplements) efficient use of feed.
CSP
AMA Rangeland management (e.g., Reduces water requirements. Sequestration,
rotational grazing, improved forage) Helps withstand drought. Raises emission reduction
grassland productivity.
EQIP Windbreaks for crops and livestock, Improves crop/livestock protection Sequestration,
CSP vegetative/riparian buffers, grassed and wildlife habitat. Alternative emission reduction
AMA waterways, setbacks, etc. income source (e.g., hunting fees).
WHIP
FLEP Agroforestry / silvopasture with Provides income from grazing and Sequestration,
EQIP rotational grazing and improved wood products. emission reduction
CSP forage
AMA
Source: Compiled by CRS staff from USDA and EPA information. Listed programs: Conservation Reserve Program
(CRP), Wetlands Reserve Program (WRP), Grasslands Reserve Program (GRP), Farmland Protection Program (FPP),
Environmental Quality Incentives Program (EQIP), Conservation Security Program (CSP), Agricultural Management
Assistance (AMA), Wildlife Habitat Incentives Program (WHIP), and Forest Land Enhancement Program (FLEP).
a. Renewable energy projects receive additional program funding in farm bill under Title IX (Energy) and Title VI
(Rural Development), as well as other federal and state program.
48
(...continued)
Section 9006 of the 2002 Farm Bill,” at [http://power.wisconsin.gov/pdf/USDA
Presentation.pdf].
CRS-18
Funding for USDA’s conservation and land management programs totaled $5.6
billion in FY2005. Voluntary land retirement programs and programs that convert or
restore land account for roughly 37% annually of all USDA conservation spending
(Figure 3). Programs that provide cost-sharing and technical assistance to farmers
to implement certain practices, such as EQIP, CSP, and AMA, provide another 21%
annually.49 USDA’s conservation technical assistance and extension services account
for about one-fourth of all funding. Other federal funding through other programs
also generally promotes natural resource protection on U.S. farms. Generally, the
decision on how and where this funding is ultimately used is made at the individual
state level.
Rent &
Easements
37%
Cost Share Public Works &
21% Emergency
Payments 5%
49
EQIP and CSP were originally set to expire in FY2007 with most farm bill programs, but
were extended in the most recent budget reconciliation (P.L. 109-171). EQIP, the largest
program, is authorized through FY2010 and will reach $1.3 billion annually.
50
State and Local Government Internet directory at [http://www.statelocalgov.net/
index.cfm]).
CRS-19
51
USDA, “Reducing Agricultural Greenhouse Gas Emissions Through Voluntary Action,”
Statement by Bruce Knight of USDA’s Natural Resources Conservation Service at the
United Nations Framework Convention on Climate Change, December 2004, at
[http://www.nrcs.usda.gov/news/speeches04/climatechange.html]
52
W. Hohenstein, “USDA Activities to Address Greenhouse Gases and Carbon
Sequestration,” presentation to Senate Energy Committee staff, February 15, 2007.
53
USDA, USDA’s 2007 Farm Bill Proposals, Conservation Title, January 31, 2007, at
[http://www.usda.gov/documents/07title2.pdf]; statement by Mark Rey, USDA Under
Secretary for Natural Resources and Environment, at USDA’s 2007 Outlook Forum, March
2, Arlington, VA; statement by USDA staff at the 4th USDA Greenhouse Gas Conference,
February 6, Baltimore MD.
54
Established in 2001, the program conducts multi-agency review of the federal R&D
portfolio. The program is under the direction of the U.S. Department of Energy, in
coordination with the U.S. Department of Commerce [http://www.climatetechnology.gov/].
See CRS Report RL33817, Climate Change: Federal Expenditures, by Jane Leggett.
CRS-20
Science Program, integrating federal research on climate and global change across
13 federal agencies, including USDA.55
State Programs. The Pew Center on Global Climate Change reports that
many ongoing state programs and demonstration projects are intended to promote
carbon storage and emissions reduction in the U.S. agriculture sector.56 For example,
several states, including Oregon, Wisconsin, Vermont, and North Carolina, are
promoting methane recovery and biofuels generation from livestock waste. A
program in Iowa is providing support and funding to promote switchgrass as a
biomass energy crop. In Maryland, income tax credits are provided for the production
and sale of electricity from certain biomass combustion. Georgia has a program that
leases no-till equipment to farmers. In addition, several states, including Nebraska,
Oklahoma, Wyoming, North Dakota, and Illinois, have formed advisory committees
to investigate the potential for state carbon sequestration. In California, an accounting
program is being developed to track possible future costs to mitigate GHG emissions
in the U.S. agriculture sector. An even greater number of state programs and
initiatives are geared toward climate change mitigation strategies in sectors other than
in the agriculture sector.57
55
Established in February 2002, the program is a collaborative interagency program,
designed to improve the government-wide management of climate science and climate-
related technology development; see [http://www.climatescience.gov/]. See CRS Report
RL33817, Climate Change: Federal Expenditures, by Jane Leggett.
56
Pew Center on Global Climate Change, State Activities, [http://www.pewclimate.org/doc
Uploads/state_activities.pdf]; and Learning from State Action on Climate Change,
[http://www.pew climate.org/docUploads/PewStatesBrief Feb2006%2Epdf].
57
See CRS Report RL33812, Climate Change: Actions by States to Address Greenhouse
Gas Emissions, by Jonathan Ramseur.
58
California Climate Change Portal, “State of California Agencies’ Roles in Climate Change
Activities,” at [http://climatechange.ca.gov/policies/state_roles.html#dfg].
59
California’s Global Warming Solutions Act of 2006 (AB 32), which was enacted in
September 2006, codified the state’s goal of requiring California’s GHG emissions be
reduced to 1990 levels by 2020.
CRS-21
and sell carbon credits.60 One program operated by the Iowa Farm Bureau involves
more than 1,400 producers in 12 states (mostly Iowa, Kansas, and Nebraska, but also
Illinois, Ohio, Michigan, Wisconsin, Minnesota, South Dakota, Missouri, Indiana,
and Kentucky),61 whose carbon credits may be sold on the Chicago Climate
Exchange.62 Similar types of programs have also been initiated in North Dakota
(operated by the North Dakota Farmers Union), Illinois (Illinois Conservation and
Climate Initiative), Indiana (Environmental Credit Corporation), and the Northwest
(Upper Columbia Resource Conservation and Development Council).63 These
programs generally cover some or all aspects of the following types of carbon capture
and storage activities: sustainable agriculture practices (including conservation tillage
and grass seedlings); planting of unharvested grasslands or tree-plantings; methane
capture and biogas production with manure digesters; wind, solar, or other renewable
energy use; controlled grasslands or pasture management; and also forest restoration.
The 2007 farm bill debate could expand the scope of ongoing climate change
initiatives to more broadly encompass the agriculture sector, promoting conservation
60
In the case of agriculture, refers to verifiable emissions credits that are earned by crop or
livestock operations for capturing and storing carbon either by reducing GHG emissions or
sequestering carbon. For trading purposes, one carbon credit is considered equivalent to one
metric ton of carbon dioxide emission reduced.
61
Iowa Farm Bureau, Carbon Credit Aggregation Pilot Project, at [http://www.
iowafarmbureau.com/special/carbon/]; CRS staff communication with Iowa Farm Bureau
staff, January 2007.
62
The Exchange is a voluntary, self-regulated, rules-based exchange. Its emission offset
program constitutes a small part of its overall program, which includes methane destruction,
carbon sequestration, and renewable energy. See [http://www.chicagoclimatex.com/].
63
For more information, see North Dakota Farmers Union at [http://www.ndfu.org], Illinois
Conservation and Climate Initiative at [http://www.illinoisclimate.org], and Environmental
Credit Corporation at [http://www.envcc.com].
64
CRS Report RL32955, Climate Change Legislation in the 109th Congress; Pew Center
on Global Climate Change, Legislation in the 109th Congress related to Global Climate
Change, [http://www.pewclimate.org/what_s_being_done/in_the_congress/109th.cfm].
CRS-22
and land management practices that could further address climate change issues in
the sector. Other types of policy options to further encourage crop and livestock
producers to adopt the types of conservation practices that may also reduce GHG
emissions and sequester carbon include:
Following is a list of the types of questions that might be raised in the 110th
Congress in legislation and debate about global climate change in general, as well as
during the anticipated 2007 farm bill debate over existing federal conservation and
land management programs for the U.S. agriculture and forestry sectors.
What are the Official estimates of greenhouse gas (GHG) emissions for the U.S. agriculture sector are
types of GHG based on emissions of methane (CH4) and nitrous oxide (N2O) associated with agricultural
emissions production only. These estimates do not include carbon dioxide (CO2) emissions from on-
associated with farm energy use and other emissions associated with forestry activities, food processing
U.S. agriculture? or distribution, or biofuel production.
See Agricultural GHG Emissions in this report for more information.
What are the Agricultural sources of CH4 emissions are mostly associated with the natural digestive
sources of GHG process of animals and with manure management on U.S. livestock operations. Sources
emissions from of N2O emissions are mostly associated with soil management and fertilizer use on U.S.
agriculture? croplands.
Figure 1 shows agricultural emissions by type and production category.
Why are CO2 CO2 emissions from on-farm energy use are aggregated with emissions for all
energy emissions transportation and industrial sectors, and comprise a small share of this total. Even if
excluded? included in the estimates for the agriculture sector, this would not substantially raise
agriculture’s overall share of total GHG emissions.
What is In 2004, GHG emissions from U.S. agricultural activities totaled 120 MMTCE (million
agriculture’s metric tons of carbon equivalent units), accounting for 6% of the annual national GHG
share of annual emissions (Table 1). Fossil fuel combustion is the leading source of national GHG
national GHG emissions (80%), with the energy sector generating about 86% of annual emissions across
emissions? all U.S. sectors.
How much In 2004, agricultural soils sequestered about 12.4 MMTCE of carbon, or one-tenth of the
carbon is carbon-equivalent of reported annual emissions generated from agriculture. Compared to
sequestered in total national GHG emissions, the agriculture sector offsets less than 1% of emissions
U.S. agricultural annually. These estimates do not include uptake from forested lands or open areas that
soils? account for a majority (94%) of total U.S. sequestration. Figure 2 shows carbon
sequestration in agricultural soils. Also see Agricultural Carbon Sinks for more
information.
Is there any Reasons for uncertainty associated with uptake estimates in U.S. soils include: actual
uncertainty uptake depends on site specific conditions (e.g., location, climate, soil type, crop type,
associated with tillage practices, crop rotations, farm management, etc.); accounting methodology; type
estimates of of practice, how well it is implemented, and the length of time undertaken; availability of
carbon uptake for federal/state cost-sharing or technical assistance; and other competing factors (including
the agriculture supply response for commercial crops and bioenergy crops). Actual GHG emissions may
sector? also vary according to many site-specific conditions.
See Uncertainty Estimating Carbon Sinks for more information.
What is the The potential for carbon uptake in U.S. agricultural soils is much greater than current rates,
potential to with estimated net increases in carbon sequestration ranging from 10-160 MMTCE per
reduce emissions year, or even higher. This could offset total national GHG emissions by as much as 2-15%
and/or increase or higher, which is substantially greater than the current estimate that farmland soils offset
carbon uptake in about 1% of annual national GHG emissions. Practices that may reduce emissions and/or
the agriculture sequester carbon on U.S. farmlands include land retirement, conversion, and restoration;
sector? improved soil management and conservation tillage on U.S. croplands; and improved
manure management and feeding strategies at U.S. livestock operations.
See sections Potential for Additional Uptake and Potential for Additional Reductions.
CRS-26
Question Discussion
How costly are The estimated value (or cost) of sequestered carbon will vary by practice. USDA’s forecast
the types of of an additional sequestration potential of 10-160 MMTCE is associated with an estimated
farming practices per-unit value ranging from $10-$125/mt of carbon per year. EPA’s reported potential of
that help address 40-270 MMTCE per year is forecast across a range of about $20-$110/mt of carbon
climate change sequestered per year. The low-end of this range reflect the sequestration potential
issues? associated with cropland management practices; higher-end values are associated with land
retirement and afforestation.
See Potential Mitigation Costs for more information.
How can Most land management and agricultural conservation practices might both reduce GHG
emissions from emissions and/or sequester carbon, including land retirement, conversion, and restoration;
production be conservation tillage; soil management and soil erosion controls; efficient fertilizer/nutrient
reduced? How and chemical application; crop rotations; cover cropping; manure management; feed
can carbon management; rotational grazing and improved forage; vegetative and riparian buffers;
uptake in windbreaks for crops and livestock; bioenergy substitution and renewable energy use; and
agricultural soils energy efficiency and energy conservation on-farm. See Table 2 for more information.
be increased?
See Mitigation Strategies in the Agriculture Sector for more information.
Are there Existing federal and state farm conservation programs promote the types of land
existing management and conservation practices that can reduce GHG emissions and/or sequester
programs and/or carbon. Also, many existing voluntary programs in the current farm bill, as well as under
legislation that existing state-level programs provide cost-sharing and technical assistance to encourage
promote farming farmers to implement such practices. These are voluntary programs and are generally
practices that designed to address site-specific improvements at an individual farming operation.
may help address
See Federal Programs and other listed program information.
climate change?
Source: Table prepared by the Congressional Research Service.