NASDA Highlights Farm Bill Recommendations
News Date February 20, 2007
Agriculture historically has provided food and fiber to America. Now, with the development of biofuels such as ethanol and biodiesel, and with greater commercial interest in wind and solar energy, America's farms and ranches are increasingly seen as a promising source of clean, renewable, home-grown energy. This role is expected to take on increasing prominence in years to come, given mounting concerns over oil prices and availability, and the environmental and geopolitical implications of America's continued reliance on foreign sources of fossil fuels. In addition, many see agriculture as having potential as a new source for manufacturing pharmaceuticals and other products previously made through chemical or industrial processes.
U.S. agriculture has a vast potential for the development and production of renewable energy resources--biomass, biodiesel, and ethanol. Much more can and should be done to develop and enhance those resources to promote the domestic supply of ethanol, biodiesel, and other biofuels as well as biobased products.
Key recommended actions include:
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NASDA supports the implementation of the 25 X '25 initiative as proposed by the Ag Energy Working Group which states that "Agriculture will provide 25 percent of the total energy consumed in the United States by 2025 while continuing to produce abundant, safe and affordable food and fiber."
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Emphasis should be placed on the development of alternative fuels from agriculture commodities, livestock manures, forest products, agricultural crop residues, food processing byproducts, and other biomass products.
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The federal tax credit for ethanol production and the biodiesel tax credit should be made permanent.
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The Renewable Fuels Standard (RFS) included in the 2005 energy bill must be increased and implemented. The standard should be 7.5 billion gallons by 2008 and increased to 30 billion gallons per year by 2025. Just as the current RFS provides for a portion of this amount to be met by cellulosic ethanol, any increases to the RFS should include a corresponding increase in the amount that must be derived from cellulosic feedstocks.
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A trading system for carbon credits or carbon sequestration should be implemented.
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Establish on-farm incentives to produce and utilize solar energy, wind energy, biodiesel fuel, methane, and any other biopowers, biofuels and bioproducts.
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Allow CRP land to be used for energy and biobased crops, with commensurate payment reductions.
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Develop a cellulosic/energy feedstock base. Participants could enroll their land by entering into a long-term contracts, at least 10 years, to grow certain perennials, such as, but not limited to, switchgrass or trees. Such land use should also benefit the environment, wildlife, and recreation.
- Support research and development for energy and biobased crops at USDA and other key federal agencies.
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Extend the wind production tax credit for a minimum of five years.
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Increase investment in agriculture as an energy source. Increase funding for incentives and research in renewable energy production from farm and forest biomass. Fund the construction of distribution and transmission infrastructures to commercially deliver biomass energy to consumers.
NASDA is presenting farm bill highlights each week in NASDA News as Congress gears up for consideration of the 2007 farm bill. NASDA's recommendations and a summary of highlights are posted on the NASDA website under "Hot Issues." (Contact: Jennifer Yezak)