WASHINGTON, D.C. — Renewable energy development is vital for farmers and ranchers, rural communities and the environment, especially now because of the economic crisis that is gripping much of rural America, said Roger Johnson, president of the National Farmers Union (NFU).

 

 The United States must implement federal-level policies that encourage expanded markets for these energy sources and remove regulatory barriers that inhibit growth. To that end, the NFU in conjunction with state Farmers Unions recently announced an initiative that is focusing on biofuel, especially the new, advanced biofuel. “We saw a lot of economic development across rural America as a result of biofuels development,” Johnson said. “In a lot of ways it has plateaued at a 10 percent level, and we need to go beyond that. The economic crisis in America today is very real.”

Net farm income is about half of what it was four years ago, he said. Median farm income is projected to be negative this year. According to some studies, farm lending has dropped 40 percent this year compared to last year. “Rural population has declined now for five straight years,” he added. “The percentage of rural residents living in poverty has increased 45  percent over the last 40 years. Medianfarm income has fallen some 7 percent, adjusted for inflation. There is a need to look for policy solutions.”

One of the best solutions is developing and building the renewable fuel industry, Johnson said. The Renewable Fuel Standard (RFS) created by the 2005 Energy Policy Act has been essential in growing the ethanol and other biofuel industries. In 2007, the Energy Independence and Security Act significantly expanded that. 

 

The U.S. ethanol industry uses 5 billion bushels of corn every year, double what it was before the RFS was in place, Johnson said. The RFS has now replaced about 500 million barrels of imported oil every year, and has created demand for the next generation of biofuel – cellulosic and advanced.

“As a part of our initiative we have hired Ann Steckel, environment and agriculture policy specialist, who has been working on Capitol Hill and in Washington, D.C., top Push to get higher ethanol in our supply,” Johnson said.

 Steckel will be talking about and promoting the benefits of biofuel across the country and on Capitol Hill, not just for rural America but all of the U.S., she explained.

Addressing climate change is important, as is talking about the economic and social benefits of using increased levels of ethanol advanced biofuel. “I am thrilled to be working with NFL to be talking about the benefits of higher levels of blends of ethanol and increased advanced biofuels,” Steckel said.

Roger Wise, president of the Sandusky/Seneca County Chapter of the Ohio Farmers Union (OFU), is pleased with the new initiative. He thinks it will bring attention to the importance of the RFS. “I and many of my neighbors in a 60-mile radius deliver to POET-Fostoria,” he said. “They almost always have a positive basis, certainly a better basis than the rest of the delivery options for corn; if they weren’t there, I could easily see our price going down $1, and I don’t think that is exaggerating. Our prices are already 50 percent of what they were a few years ago.”

Wise thought the effort is to reach out to consumers and to make them more aware of the benefits, not only cost-wise but also for the quality of gas and the benefits to the environment. “I don’t think the public understands as much as they should, and they would embrace it more if they did,” he said. “I hope that is part of our effort at the national level.”