Robert Pore's Ag Blog

A new report issued by the Institute for Local Self-Reliance urges the U.S. Department of Energy to change its piecemeal approach to commercializing ethanol from cellulose and develop a comprehensive strategy. “The future of American agriculture may depend on this,” says David Morris, Vice President of ILSR and author of Putting the Pieces Together: Commercializing Cellulosic Ethanol.

Congress made clear its farmer and rural development focus in the Energy Policy Act (EPAct). It requires that projects “demonstrate outstanding potential for local and regional economic development.” In addition, EPAct requires that a priority be given to projects “that include agricultural producers or cooperatives of agricultural producers as equity partners in the ventures; and have a strategic agreement in place to fairly reward feedstock suppliers.”

The ILSR report proposes that DOE’s strategy take into account a key element of the Energy Policy Act: a mandate for 250 million gallons of cellulosic ethanol by 2013. ILSR argues that the various incentives contained in the Act – direct grants, loan guarantees and direct purchasing – will not significantly accelerate that time line. Therefore, ILSR has urged DOE to use the EPAct’s resources to achieve its qualitative goals: maximizing the benefits to the nation’s farmers and rural communities.

“Given the mandate, the country will achieve EPAct's quantitative goals regardless of what DOE does,” says Morris. “On the other hand, the future structure and prosperity of American agriculture may well depend on how DOE, and USDA, craft their biofuels strategy.” For six years, Morris was a member of a Congressionally created advisory committee that reviewed the U.S. Departments of Energy and Agriculture biomass strategy.

Although EPAct authorizes over $2 billion for incentives, ILSR notes that Congress has yet to appropriate any funds. The appropriation debate will take place this fall. “All Americans should get involved in that debate,” Morris declares. “For it will answer the vital question: Will we have over 1,000 farmer owned biorefineries, allowing virtually all full time farmers in the country to directly benefit from the coming age of biofuels, or will future agriculture look the same as current agriculture, with millions of small producers selling to a handful of dominant processing companies?”

The full report, Putting the Pieces Together: Commercializing Cellulosic Ethanol, can be downloaded at www.ilsr.org

National Farmers Union and a coalition of agriculture and rural-related organizations that have been working toward the adoption of natural disaster assistance for agriculture for more than a year and are supporting a last-ditch effort to get the assistance approved.

The organizations are urging members of the U.S. House of Representatives to sign a discharge petition on agriculture disaster assistance. The measure would circumvent the committee process and bring legislation directly to the House floor. In order for the Discharge Petition to become effective, it must have 218 signatures.

"More than 34 organizations continue to urge the House to vote on disaster legislation, but a few in the Congressional Leadership who control the House schedule have blocked consideration," said NFU President Tom Buis, "I am hopeful that farmers and ranchers and rural residents will urge their Representatives to sign the Disaster Discharge Petition early this week so that the bill can still come to the floor before Friday."

Congress is scheduled to adjourn this Friday. House members will return home to campaign before the November elections. While there are continuing efforts in the Senate to secure a vote still this week, time is running out and it appears that the Discharge Petition in the House may be the only way to get this important matter to the floor for a vote this week.

Farmers and ranchers nationwide have experienced overwhelming losses from weather-related disasters in 2005 and 2006. According to the U.S. Department of Agriculture, more than 66 percent of the counties in the country have been designated natural disaster areas, largely as the result of devastating drought in the Midwest and Western part of the nation, and flooding in the East. More than 80 percent of the counties in the United States were declared disaster areas last year.


"A disaster is a disaster - regardless if it comes from a hurricane, tornado, flood or drought. Congress needs to act assist families who are victims of something totally beyond their control," Buis said.

Reserves additions replaced 164 percent of 2005 dry natural gas production
as U.S. natural gas proved reserves increased for the seventh year in a row
according to estimates released today by the Energy Information
Administration. The 6 percent increase in 2005 was the largest annual
increase in natural gas proved reserves since 1970.

Reserves additions of crude oil replaced 122 percent of the 2005 production.
Crude oil proved reserves went up in 2005 for the first time in 3 years,
increasing by 2 percent.

Two of the four largest U.S. oil-producing areas, Texas and California, reported increases in proved crude oil reserves in 2005 while the Gulf of Mexico Federal Offshore and Alaska reported declines.

Several significant deepwater discoveries that have been made in recent years in the Gulf are not yet booked as proved reserves. Texas reported the largest
increase in crude oil reserves, a majority of which occurred in the Permian
Basin of west Texas. Wyoming and Montana had the second and third largest
increases.

U.S. crude oil production declined in 2005 due to lower production in the
Guf of Mexico and Alaska. The Rocky Mountain States, however, generally
increased their crude oil production in 2005 with Montana showing the largest
increase at 36 percent owing to development of the Bakken Formation in the
Williston Basin.

Gas reserves additions onshore in the lower 48 States were large enough to
overcome a 10 percent drop in gas reserves reported for the Gulf of Mexico
Federal Offshore. The majority of natural gas reserves additions in 2005 were
extensions of existing gas fields rather than new field or reservoir discoveries.

Leading the nation in 2005 natural gas reserves additions were Texas, with
notable reserves increases in the Newark East Field (Barnett Shale), and
Colorado, with notable reserves increases in the Ignacio-Blanco Field (tight sands and coalbeds).

Total U.S. natural gas production declined 4 percent in 2005 due to the effect
of Hurricanes Katrina and Rita which cut natural gas production in the Gulf of
Mexico (which had accounted for 20 percent of U.S. dry gas production in 2004)
by 80 percent at the peak of hurricane-related curtailments. Gulf of Mexico
production slowly returned and is expected to reach roughly 90 percent of 2005's
pre-hurricane production rate in September 2006. Gas production from the Gulf
had been declining at about 10 percent per year prior to the hurricanes.


"Advance Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves
2005 Annual Report" is available on the EIA Internet site at:
http://www.eia.doe.gov/oil_gas/fwd/adsum.html

LINCOLN — Agriculture Secretary Mike Johanns today announced that the Middle Republican watershed in south-central Nebraska is one of 51 areas nationwide selected for the 2007 Conservation Security Program.

The watershed, which has a similar name but does not lie in the Middle Republican Natural Resources District, covers parts of seven Nebraska counties and parts of four Kansas counties. The watershed roughly starts near Holdrege NE and drains southeasterly to about Belleville, Kansas.

Nebraska counties include Phelps, Kearney, Harlan, Franklin, Webster, Nuckolls and a small portion of Thayer. Kansas counties include Phillips, Smith, Jewell, and Republic.

The announced watersheds are based on President Bush’s requested funding level for the program for fiscal year 2007. Congress is still working on the Federal budget.

“This is the fourth year the Conservation Security Program has recognized farmers and ranchers for their ongoing stewardship on working lands,” said Johanns.

“Last year, in the Upper Little Blue watershed, which lies just east of the Middle Republican watershed, we signed 348 new contracts with landowners totaling $4.9 million payments this year. If these contracts continue through their 10-year life span it will bring about $40.5 million into our economy,” said Steve Chick, Natural Resources Conservation Service State Conservationist. “Since Nebraska was involved in this program from the start, we now have 1,582 landowners enrolled in this program,” he added.

CSP is a voluntary program that supports ongoing conservation stewardship on private agricultural working lands and enhances the condition of the Nation’s natural resources. Under this program, USDA rewards producers who practice good stewardship on agricultural lands and offers incentives to increase the use of conservation practices.

The watersheds are being announced now to allow farmers and ranchers adequate time to gather resource information on their operations in preparation for a prospective sign-up. NRCS will schedule public meetings to inform producers about the program and application process.

“Producers can get a feel of the needed records for the self-assessment application workbook by looking at last year’s workbook,” said Chick. Other CSP data from last year is still on our website at www.ne.nrcs.usda.gov/CSP.html . Remember though, this data could change,” he said.