A new study released this week by 25x’25 and conducted by the University of Tennessee, was the latest of several studies that indicate net economic benefits to agriculture as a result of clean energy / climate legislation. According to the study, these benefits will result from a well constructed cap-and-trade program designed to grant farmers and ranchers carbon offset credits for a range of practices, including: • bioenergy crop production • reduced soil tillage • bioenergy crops • methane capture • efficient fertilizer application • planting perennial grasses or trees on marginal land • keeping good farmland in crop production The study concludes that any increases in costs from clean energy / climate legislation will be relatively small to farmers. Moreover, it finds that the economic opportunities provided by the legislation will offset any potential increase in costs, namely energy and fertilizer. Most important, however, is the report’s conclusion that none of these benefits will transpire if carbon emissions are regulated by the EPA, instead of by legislation. The study finds that EPA regulation will result in significant net losses across the agriculture industry, because there will be no way for farmers to receive payment for their carbon reduction services. Why is this important? Because a 2007 Supreme Court decision has given the EPA the authority to regulate greenhouse gasses in the absence of congressional legislation-and they are in the process of acting on this mandate. That means if Congress does not pass a clean energy bill, then farmers could get all the carbon regulation, with none of the economic benefits of a comprehensive carbon offset program. In the near term, carbon sequestration projects on agriculture lands are the easiest, most readily available and cost-effective means of reducing greenhouse gas emissions on a meaningful scale.  Moreover, they offer farmers and ranchers a new set of income opportunities.  As stewards of over half the land and water resources in the country, farmers and ranchers are poised to benefit from the passage of clean energy legislation, and lose out if it fails. But to benefit and be part of the solution, producers and agriculture leaders need to take some initial steps.  Ag. must get beyond the "this is bad for us" rhetoric and recognize these potential opportunities; engage in the policy debate to ensure a properly constructed cap and trade system works for agriculture; and advocate for policies that help agriculture AND reduce greenhouse gasses.  Hopefully this study will be the impetus for positive action. About the Author: Jimmy Daukas is Managing Director, Agriculture and Environment Campaign