USDA Renewable Energy Investments in Rural America
USDA Rural Development has invested nearly $290 million in renewable energy since the start of the Bush Administration in Bioenergy/Biomass ventures, including more than $172 million in value added and business ventures; and $114 million in renewable electric utility upgrades and expansions.
These programs range from rural business enterprise and opportunity grants to guaranteed loans that encourage investment in renewable energy.
One example is a $16 million loan guarantee to help finance construction of an electrical generating plant in rural Arizona that will use as a fuel source wildfire-damaged timber along with waste fiber from a nearby paper mill.
USDA Bioenergy Program
The goals of USDA's Bioenergy Program are to encourage increased purchases of eligible commodities for the purpose of expanding production and supporting new production capacity for bioenergy. Bioenergy is commercial fuel-grade ethanol and biodiesel made from program eligible commodities.
USDA's Bioenergy Program pays U.S. commercial bioenergy producers, both ethanol and biodiesel, to increase their annual production from eligible commodities.
The program also offers support to biodiesel producers for base production (not based on increase) at 15 percent the rate of increased production.
USDA Guide To Achieving Energy Efficiency Through Conservation
Conservation practices such as no-till can save farmers 217 million gallons of fuel and up to $480 million per year, while other conservation practices such as irrigation water management can reduce diesel consumption by 80 million gallons and save farmers up to $180 million per year. In addition to energy savings, these practices provide obvious co-benefits to the environment. Key conservation practices include:
Crop Residue Management--According to the Conservation Technology Information Center, a farmer can save at least 3.5 gallons of fuel per acre by going from conventional tillage methods to no-till, a conservation practice that leaves the soil undisturbed from harvest through planting except for narrow strips that cause minimal soil disturbance. At November 2005 diesel prices, this amounts to $7.70 per acre in production cost savings. On a farm with 1,000 acres of cropland, these savings add up to 3,500 gallons of diesel fuel per year valued at $7,700.
Nutrient Management--The proper collection, handling, storage and application of manure help to protect our nation's waters and provide a significant nutrient source for crop production. Currently, about 2.7 million tons of manure-based nitrogen are applied on agricultural land. It takes approximately 40,000 cubic feet of natural gas to produce a ton of commercial nitrogen fertilizer. Doubling the application of manure-based nitrogen could save agriculture approximately $1.2 billion worth of natural gas each year. Substituting manure for commercial fertilizer can reduce fertilizer costs as much as $85 per acre for a 1,000-acre farm.
Irrigation Water Management-- The 2003 Farm and Ranch Irrigation Survey reports approximately 27 million U.S. acres under sprinkler irrigation. About 80 percent of these acres utilize center pivot systems. If the acres under medium pressure were converted to low pressure, the per acre energy savings could be about $9.00 per acre. The conversion of the high-pressure systems to low pressure would result in additional savings of $41 per acre. Diesel powered pumps are used on about 10 million irrigated acres. A 10 percent improvement in water use efficiency could reduce diesel consumption by 8 gallons per acre.
Precision Agriculture--By reducing overlap in fertilizer and pesticide applications on the 250 million acres of cropland used to produce major crops, petroleum-based fertilizer and pesticide costs could be reduced up to $1 billion annually. A 1,000-acre farm can save up to $13 per acre by using precision agriculture techniques.
Pesticide Management--Pesticide production depends heavily on energy resources. Integrated Pest Management reduces energy use and environmental risk while maintaining product quality. For example, some cherry producers have abandoned traditional spraying schedules to spray based on in-the-field microclimate information obtained from monitoring equipment and scouting. This can reduce the typical herbicide cost about $40 per acre with a 25 percent reduction of herbicide application.
Prescribed Grazing Systems-- it takes 40 pounds of nitrogen (high natural gas user) at $0.40 per pound to produce a ton of grass hay; 1.35 gallons of diesel fuel at $2.41 per gallon to raise, harvest, store, and feed the hay; and dry matter losses of about 30 percent for field-stored hay, every month that cows can remain on pasture reduces direct energy costs by about $10.70 per cow.
Windbreaks and Shelterbelts--Windbreaks and shelterbelts can reduce wind-induced erosion and save heating and cooling costs associated with farmsteads. When properly placed to shield farm buildings from strong winds, windbreaks can lower heating and cooling costs by up to 20 percent.
