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New energy economics: Potential impacts of cap and trade on ND corn production

Published 07/17/2009

FARGO - I recently spent an afternoon with the leadership of the North Dakota Corn Growers Association trying to discern the impact of pending federal cap and trade legislation. It is quite likely that corn is the one commodity that will be the most affected because of ties to fertilizer, livestock production and biofuels. At this stage, it is very difficult to forecast if these effects will be positive or negative because many of the programmatic details have not been finalized. In essence, cap and trade provides both opportunities and risks, depending on how the legislation is implemented.

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