12/14/05 Addressing ag energy, Part two

As U.S.D.A. introduced its comprehensive energy strategy last week with the goal of reducing the impacts of high fuel and fertilizer costs on American ag producers, it was observed that the strategy contained a mix of both short and long term strategies. Formation of a U.S.D.A. Energy Council to study various solutions. Loan payments to support farmers struggling with assets and credit to keep up with input purchases. Even an update of the energy calculator found at U.S.D.A.'s web site, according to Natural Resources Conservation Service Chief Bruce Knight. KNIGHT: All the producer has to do is type in their zip code. They'll get a couple of boxes to fill in, which will be the acres for the crops for that area. That will calculate what the diesel fuel use would be for the different types of tillage practices. The producer can then plug in their own anticipated fuel costs and that will give them their fuel savings. But U.S.D.A.'s efforts will also focus on policies that will provide some long term benefits and energy costs savings. For example, at the recent press conference announcing the comprehensive energy strategy, Ag Secretary Mike Johanns offered a plank that could receive a lot of attention, especially from the environmental community. JOHANNS: The Forest Service is proposing a new categorical exclusion for limited oil and gas activities that have significant environmental impacts. Under Secretary Mark Rey says officials would take currently approved projects shown to have no negative environmental effects, and use those to approve similar projects & in Rey's estimates about 200 such projects annually & without a lengthy environmental impact process. REY: It will reduce the processing time for permits for oil and gas activities a couple of acres in size, about ten acres in total, from about six months to about sixty days. Now those projects are still subject to public comment. U.S.D.A. is also soliciting comment in other ways. Today marks the start of a two day Energy Agriculture Conference in St. Louis co sponsored by U.S.D.A. and others, designed to discuss new technologies and programs to help increase energy production from ag. And Risk Management Agency is planning on a spring time workshop to seek ideas to help create improved risk management tools to help alleviate impacts of energy costs for producers. The strategy also dictates a greater push by U.S.D.A. and other government agencies to meet the Renewable Fuels Standard of 7.5 billion gallons of ag-produced fuel a year well before the target date of the year 2012.