Hearing of the Senate Agriculture, Nutrition and Forestry Committee on Energy and Rural Development Recommendations for the Farm Bill

Statement

STATEMENT OF CHAIRMAN TOM HARKIN (D-IA)

"Good morning and welcome to this hearing of the Committee on Agriculture, Nutrition and Forestry.

"Today, we hear additional testimony on two topics that are high on the opportunity side of the ledger for rural America: energy and rural development. One message has been consistently clear throughout preparation for the next farm bill: that is, the new legislation must provide strong support for energy initiatives in agriculture and rural America.

"Record gasoline prices are only one indicator that our nation is facing critical energy challenges. We have long known of our vulnerability arising from our over-dependence on oil, which is the source of essentially all of our transportation fuels. We now import over 60 percent of the petroleum we use, and the nations with the largest oil reserves and production capabilities are, generally, not especially friendly to us, politically unstable or both.

"Our nation's agricultural sector has already demonstrated impressive biofuels production capabilities, and there is impressive evidence it can provide even more in the future. Senator Lugar and I are just two of the believers. We introduced the Biofuels Security Act in January, calling for 30 billion gallons of renewable fuels by 2020 and 60 billion gallons by 2030. I'm pleased to see that a number of others, including President Bush and the Energy and Natural Resources Committee, are calling for very similar targets.

"If we achieve these levels of biofuels production, it will involve tens of millions of acres devoted to producing biomass feedstocks and very likely some significant shifts and changes in agriculture in America. I know there are concerns that greater biofuels production will disrupt supplies or prices of other agricultural products. Those concerns must be heeded and addressed. However, if we do the research and formulate the technology and market policies carefully, we can capitalize on this tremendous opportunity to produce energy in addition to needed supplies of food, feed and fiber. That will be beneficial to rural America as well as to the nation as a whole. Indeed, energy from our agricultural sector is the most important rural economic development opportunity in decades.

"Our first panel brings energy to the table alongside rural economic development. Economic development is much more than just a by-product of rural energy production. It must be a priority that cuts across these two important farm bill titles. In particular, we must foster local and regional initiatives using available resources, with the federal government serving as a partner and a leader in driving rural economic opportunities.

"Witnesses on the second panel will speak about the future of biofuels - both the technology developments we are likely to see and the role that biofuels from cellulose are likely to play in supplying liquid fuels which are so crucial to our transportation sector.

"The Farm Security and Rural Investment Act of 2002 was the first farm bill ever to include an energy title, and we enacted that with bipartisan support. We will hear testimony today about energy achievements that have resulted from that energy title. That information also will help us frame sound farm bill programs and policies to help our farmers and ranchers and rural communities manage their energy systems. And I trust the information will help us formulate an energy title that again will have support on both sides of the Senate aisle.

"Finally, I always like to hear from folks that are utilizing our programs in their farming and their businesses. I'm pleased that we were able to include two witnesses actively engaged in the energy business in rural America today."

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