Senate Agriculture Committee Holds First Farm Bill Hearing: Energy in Focus

On February 15, the Senate Committee on Agriculture, Nutrition and Forestry held the first of four scheduled hearings on the Farm Bill. Secretary of Agriculture Tom Vilsack and two panels of experts testified on “Energy and Economic Growth for Rural America.”

Committee Chair Senator Debbie Stabenow (D-MI) began the hearing observing that “Bio-based manufacturing is a great example of new opportunities in rural America through innovative businesses that create good jobs. The economic benefit is twofold: new markets for the farms and new jobs and opportunities in town. According to a recent Department of Agriculture study, the bio-based plastic and chemical products industry could create over 100,000 American jobs – and many in rural America. Biomass is another critical component of the bio-economy. These companies develop new uses for wood fiber and other forestry products and clean, American-grown energy.”

In his opening statement , ranking member Senator Pat Roberts (R-KS) stated that he was “concerned that after four years some of these programs were just implemented within the last year. We need to make sure we are taking into consideration the complexity of the energy programs. And it’s not just energy – we are discussing this issue in multiple titles – the complexity of programs and the ability of USDA to deliver the programs effectively and for producers to understand their options. about delays in implementing energy programs.” He expressed his resolve to complete a new Farm Bill this spring.

Secretary Vilsack observed "In the last Farm Bill, this Committee wisely focused on energy policy. Renewable energy – including biofuels, biomass, wind and solar – are an important source of jobs and economic growth in rural communities across the country. Biofuels and biomass in particular offer exciting new opportunities for entrepreneurs, farmers, ranchers and growers. The President has shared his vision for a new era in American energy, with an economy built to last fueled by homegrown and alternative energy sources designed and produced by American workers. This is why clean and renewable energy has been a high priority for the Obama Administration, as well as for Congress on a bipartisan basis, for many years.”

The third panel of experts focused on energy topics. Link to their testimonies and a video of the hearing here .

Steve Flick, Chairman of the Board, Show Me Energy Coop, Centerview , MO, testified on behalf of the National Farmers Union in support of "robust funding for the Rural Energy for America Program (REAP), Biomass Crop Assistance Program (BCAP) and the Biorefinery Assistance Program."

Mr. Lee Edwards, President and CEO, Virent, Inc., Madison, WI, testified that "Virent is a product of our longstanding national commitment to innovation. Programs historically supported by this committee have played a part in creating the environment for companies like Virent to thrive. To date, Virent has attracted $75 million in private sector investment, from angel investors, venture capital and global strategic partners. Our success in securing private capital would not have been possible without several early stage research and development grants from the Federal government, including the USDA Biomass Research and Development Initiative (BRDI), the Department of Energy (DOE), and others. These Federal investments have provided critical research funding to test new concepts and develop the technology at the pilot and demonstration scale. There is no doubt that Virent’s conversion technology would not be where it is today – ready for commercialization – were it not for early R&D investments from the Federal government that facilitated early technical discoveries that garner interest and investment from the private sector. To date, every government dollar Virent has received has been matched by nearly four private sector dollars."

Mr. Bennie Hutchins, Energy Program Coordinator, Ag Energy Resources, LLC, Brookhaven , MS, talked about how the Rural Energy for America Program requires $3 in matching funds for every dollar of federal funds and the thousands of jobs that have been created or saved across rural America by the REAP program.

Mr. William Greving, Sorghum Farmer, Greving Farms, Inc., Prairie View, KS, spoke about the positive economic impact the ethanol industry has had on his community and the importance of the Farm Bill Bioenergy Program for Advanced Biofuels in supporting the use of sorghum as a dry land energy crop.