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WASHINGTON, DC, US, December 14, 2005 (Refocus
Weekly)
U.S. farmers will be offered US$1.4 billion this
year to create renewable energy systems and businesses.
The U.S. Department of Agriculture has formed an Energy Council
to examine departmental programs to ensure that they fit into a
comprehensive energy strategy, and to ensure that agricultural
producers are represented during national energy discussions. The
Council is part of a comprehensive energy strategy announced by
agriculture secretary Mike Johanns to help farmers and ranchers
mitigate the impact of high energy costs and develop long-term
solutions.
“I've heard loud and clear that producers are struggling with high
energy costs,” he says. “USDA has put together an array of efforts
to assist producers both in the short and long term. I've appointed
a leadership team to oversee our comprehensive strategy and ensure
specific goals are met relating to energy-saving assistance for
producers and the advancement of renewable fuels.”
Since 2001, USDA Rural Development has awarded $290 million in
funding for renewables, which support wind and solar power units, as
well as ethanol and biodiesel plants, which create jobs and spur
growth in rural communities. The Forest Service and other USDA
agencies will intensify their support of renewable fuels research,
development and use.
USDA will intensify efforts to support the development, production
and use of renewable fuels through an array of research, loan and
grant programs. Johanns has directed Rural Development to maximize
the use of $1.4 billion available this year in various business and
electric loan and loan guarantee authorities.
Johanns directed that the funds be used to help farmers, ranchers
and rural communities efficiently create renewable energy systems
and businesses. USDA will also create risk management tools to help
producers manage the adverse impacts of high energy and
energy-related input costs.
Higher energy costs can impact the ability of producers to borrow
funds, and the Farm Service Agency has been told to use all
available budget authorities to provide support to producers who
need credit and, if necessary, to seek approval to redirect
resources within its guaranteed and direct loan programs. FSA
provides direct and guaranteed loan assistance to 26,000 family
farmers totalling $3 billion a year.
USDA has also posted a revised on-line energy calculator to help
producers reduce fuel usage. The ‘Energy Estimator’ was developed to
calculate the use of diesel fuel and costs associated with various
tillage practices, while conservation practices also help to reduce
dependence on fossil fuels while saving farmers money.
The Energy Council will coordinate implementation of USDA's energy
strategy and partner with the Department of Energy, Environmental
Protection Agency and others to achieve the Renewable Fuels Standard
set by the Energy Policy Act of 2005 before the statutory deadline.
The standard requires an annual usage rate of 7.5 billion gallons of
green fuels by 2012.
Johanns also announced that 131 companies have received Small
Business Innovation Research grants of $19 million from USDA,
including eight that fund research into renewable biofuels. The $1.2
million in grants which deal with renewable energy include $295,606
for ‘Biosolids for Biodiesel’ in Washington state which will set up
a facility capable of extracting oil from canola seed and
transforming the oil into biodiesel fuel.
“These grants will help hundreds of small businesses to explore and
commercialize innovative ideas, while conducting research on
important agricultural issues with significant public benefit,” says
Johanns. “Investing these funds is a part of our commitment to
enhance opportunities for small businesses and strengthen the
economy.”
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