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Farms Here, Forests There Tropical Deforestation and U.S. Competitiveness in Agriculture and Timber

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May 24, 2010
Author/organization: 
Shari Friedman, David Gardiner & Associates

Destruction of the world’s tropical forests by overseas timber, agriculture, and cattle operations has led to a dramatic expansion in production of commodities that compete directly with U.S. products. About 13 million hectares (32 million acres) of forest are destroyed every year — mostly in the tropics.1 This deforestation has allowed large-scale low-cost expansion of timber, cattle and agricultural production, and has also caused damage to the environment and forest communities. Much of this timber and agricultural expansion has come through practices that do not meet U.S. industry standards for sustainability, labor practices, and basic human rights, providing these overseas agricultural operations a competitive advantage over U.S. producers.

David Gardiner & Associates prepared the paper on behalf of Avoided Deforestation Partners and the National Farmers Union. Shari Friedman, Senior Advisor to DGA, served as lead author.

The U.S. agriculture and forest products industries stand to benefit financially from conservation of tropical forests through climate policy. Ending deforestation through incentives in United States and international climate action would boost U.S. agricultural revenue by an estimated $190 to $270 billion between 2012 and 2030. This increase includes $141 to $221 billion in direct benefits from increased production of soybeans, beef, timber, palm oil and palm oil substitutes, and an estimated $49 billion* savings in the cost of complying with climate regulations due to lower energy and fertilizer costs resulting from the inclusion of relatively low-cost tropical forest offsets.

Climate legislation currently under consideration in Congress includes provisions to unlock these benefits for U.S. agriculture through a combination of tropical rainforest offsets and by setting aside allowances for tropical rainforest conservation. Combined with anticipated comparable action by other developed countries, these policies aim to cut tropical deforestation in half by 2020 and eliminate it entirely by 2030.

This report analyzes the impact of achieving these conservation goals† on U.S. production of soybeans, palm oil substitutes, beef, and timber. Eliminating deforestation by 2030 will limit revenues for agricultural expansion and logging in tropical countries, providing a more level playing field for U.S. producers in global commodities markets. We examine potential annual effects of a reduction in deforestation as well as the cumulative effect between 2012 and 2030.

 

Access the full report from the Avoided Deforestation Partners website here (PDF).

 

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