NEW ENERGY: GOOD FOR THE FARMERS

Another segment of the U.S. economy is now after the Senate to extend tax credits for New Energy and enact a mandatory national Renewable Electricity Standard (RES).

The potential of New Energy to create new economic opportunities in rural areas cannot be underestimated. Tom Buis, President, National Farmers Union: "With expanding production of a variety of renewable energies, economic opportunities are returning to rural America. A 50 million gallon ethanol plant increases a local community's GDP by $152.3 million; increases household income by $40 million; increases local spending by $56 million; and creates more than 600 new jobs…"

Some of the rural benefits of New Energy go to a corn ethanol economy that is untenable and will soon have to face a shift to second generation cellulosic ethanol. Another segment of the rural economy, though, are landowners who have begun to realize enormous benefits from leasing their property to wind and solar installation developers and transmission builders. Still others have installed their own personal small wind or solar photovoltaic systems and are reaping the rewards of off-grid electricity or net metering income. For them, a national RES means more access to growth. Buis: "NFU believes it is critical for federal policy to foster the development of renewable electricity projects and in particular locally-owned and community-based projects…"

It must get awfully lonely for those very few recalcitrant Senators who are blocking benefit to so many Americans by their oil-and-gas industry-funded obstinate refusal to extend the New Energy tax credits and pass a national RES. By last count, that minority of Senators represents at best 36% of the U.S. population.

Polls invariably show a majority of Americans (usually a majority of more than 2/3 of those polled) favor the development of New Energy.

click to enlarge

NFU: Renewable Energy Revitalizing Rural Economies
March 6, 2008 (Cattle Network)

WHO
Tom Buis, President, National Farmers Union; the House of Representatives Select Committee on Energy Independence and Global Warming (Edward Markey (D-Mass), Chairman)

WHAT
Buis told Markey’s committee rural America is “ready, willing and able” to help move the U.S. toward New Energy.

Wind turbine manufacturing is bringing jobs and investment to every sector and region of the country. (click to enlarge)

WHEN
- Buis testified to the Congressional committee March 5.
- The House of Representatives passed its tax credit extension bill at the end of February. The Senate has yet to act and is expected to reject the tax credit extensions just as it did in December 2007, when it also rejected the House-passed RES.

WHERE
Locally owned ethanol plants constitute the single biggest segment of ethanol production.

Wind farms can go where no farm has gone before. (click to enlarge)

WHY
- Farmers and local investors own 40% of U.S. ethanol production.
- A national mandatory RES would require U.S. utilities to obtain a portion of the power they sell from New Energy or meet some substitute requirement like sponsoring energy efficiency. (Or building new transmission?)

Next generation (cellulosic) ethanol will bring new opportunities to every region. (click to enlarge)

QUOTES
Buis: "After years of market prices below cost of production and producers' reliance on farm safety net programs, farmers are now receiving their income from the marketplace…Farmers are not only benefiting from higher commodity prices, but also from local ownership of ethanol production facilities."