Public Radio Commentary

Presented by Sandy Courtnage

August 28, 2007

Energizing Rural America

A large new agricultural market for clean energy products is within reach, opening tremendous opportunities for rural economic revival.  This conclusion in a recent study commissioned by National Farmers Union highlights significant increases in jobs, business activity and local tax revenues if a national Renewable Electricity Standard – or RES – is enacted.

The report makes clear that electrical power opens a massive new market for farmers.  U.S. retail electricity sales totaled $330 billion per year while farmer cash receipts for all products in 2006 totaled $100 billion less.

Agriculture is a niche producer of clean energy today, but agriculture could grow to supply 20 to 25 percent of U.S. energy needs over the next few decades.  This boost in renewable electricity production will provide significant benefits for rural America.

A 20 percent clean energy share for electrical power alone would produce immense benefits.  Payments to rural landowners for wind farm leases, for example, could reach $475 to $562 million, and locally owned wind facilities can generate three times the local income benefits of a leased wind farm.  Communities would also enjoy increased capital investment in clean energy facilities and increased local property tax revenues.

The same 20 percent renewable electricity share would also produce general benefits for the nation including new jobs, lower electricity and natural gas bills, and a large annual reduction of carbon dioxide emissions.

But do rural areas across the United States possess the potential to supply abundant clean energy?  A Stanford University study found that the Great Plains alone have potential in excess of current U.S. power generation, and economical wind resources are available in three-quarters of the states.

A study by the U.S. Department of Agriculture and Department of Energy finds that the U.S. has the capacity to produce 1.3 billion dry tons of biomass by the year 2030 while still supplying food, feed and fiber needs.  Of that amount, one billion tons come from farmlands and the remainder from forests.  One billion tons would replace the equivalent of 30 percent of U.S. petroleum use.

These studies are backed up by modeling done by University of Tennessee researchers who demonstrate that the U.S. has sufficient working lands to produce significant amounts of energy while still sustainably providing for other needs. 

The question of how to successfully accomplish these renewable energy goals lies, according to the report, in a federal Renewable Electricity Standard.  It points to the successes of various state RES requirements that are fueling new wind development, and biopower prospects across the country. 

Our national leaders are following the states.  Earlier this month the U.S. House of Representatives passed H.R. 3221, the House energy bill.  It includes a national Renewable Electricity Standard that would require investor-owned electric utilities to produce 15 percent of their electricity from renewable energy sources by the year 2020.

The bill also provides loan guarantees for the development of biorefineries and biofuels production plants, and includes a provision to consider the level of local ownership in determining loan recipients, which is good for rural ownership opportunities.

American agriculture can vitally contribute to meeting security and other challenges by harvesting wind power, biopower and other renewables.  America’s farmers and working lands have the capacity to bring abundant clean energy supplies to the marketplace.  This will stabilize prices, provide secure supplies in an uncertain world and reduce the global warming threat.  The process will spur economic benefits in farm belts across the country, and give new generations a chance to stay in rural communities.

America needs new clean energy sources.  Agriculture is ready to help grow America’s energy future.

For the Montana Farmers Union, I’m Sandy Courtnage.  Thanks for listening.