December 2005

 
USDA ENERGY COMMITMENTS AND HIGHLIGHTS
 
USDA Renewable Energy Investments in Rural America factsheet

USDA ANNOUNCES ENERGY STRATEGY TO HELP FARMERS AND RANCHERS WITH HIGH ENERGY COSTS
New Council To Spur Action On Energy Issues

WASHINGTON, Dec. 7, 2005--Agriculture Secretary Mike Johanns today unveiled a comprehensive energy
strategy to help farmers and ranchers mitigate the impact of high energy costs and develop long-term
solutions.

"As I've traveled the country conducting listening sessions, I've heard loud and clear that
producers are struggling with high energy costs," said Johanns. "USDA has put together an array of
efforts to assist producers both in the short and long term. I've appointed a leadership team to
oversee our comprehensive strategy and ensure specific goals are met relating to energy-saving
assistance for producers and the advancement of renewable fuels."

Johanns announced the formation of the USDA Energy Council to examine departmental programs and
authorities, ensuring they fit into a comprehensive energy strategy. The council will also ensure
agricultural producers have a place at the table for national energy discussions. The council will
be chaired by Under Secretary for Rural Development Thomas Dorr and will be vice chaired by Under
Secretary for Natural Resources and Environment Mark Rey and Chief Economist Keith Collins.

Johanns also announced that USDA is interested in creating risk management tools that would help
producers to manage the adverse impacts of high energy and energy-related input costs. USDA's Risk
Management Agency (RMA) will host a workshop by early spring to seek ideas and promote discussion
about how best to create such risk management tools.
Recognizing that higher energy costs can impact producers' ability to borrow funds, Johanns directed
the Farm Service Agency (FSA) to use all available budget authorities, and if necessary, seek
approval to redirect resources within its guaranteed and direct loan programs to provide support to
producers who need credit. FSA provides direct and guaranteed loan assistance to more than 26,000
family farmers totaling $3 billion annually.

Another part of USDA's effort to mitigate energy costs in the short term is the availability of a
newly revised on-line energy calculator designed to help producers to reduce fuel usage. USDA's
Natural Resources Conservation Service developed the "Energy Estimator" to calculate the diesel fuel
usage and costs associated with various tillage practices, helping producers to make practical,
money-saving decisions. Conservation practices such as nutrient management, crop residue management,
irrigation management, windbreaks, and contour farming also help to reduce the nation's dependence
on fossil fuels while saving farmers money and helping to protect soil and water resources.

USDA is also intensifying efforts to support the development, production and use of renewable fuels,
such as ethanol and biodiesel, through an array of research, loan and grant programs. The Secretary
has directed Rural Development to maximize the use of approximately $1.4 billion available this year
in various business and electric loan and loan guarantee authorities. More specifically, Johanns
directed these funds be used to help farmers, ranchers and rural communities efficiently create
renewable energy systems and businesses. Since 2001, USDA Rural Development has awarded nearly $290
million in renewable energy funding. These funds support renewable energy projects such as ethanol
plants, wind and solar power units that create jobs and spur growth in rural communities. The Forest
Service and other USDA agencies will intensify their support of renewable fuels research,
development and use.

USDA is co-sponsoring a conference that will help to bring these efforts into focus. The Energy
Agriculture Forum will take place in St. Louis, Missouri on December 14-15, 2005 to discuss new
technology, programs and initiatives that will increase energy production from agriculture.

The new Energy Council will coordinate implementation of USDA's energy strategy and partner with the
U.S. Department of Energy, Environmental Protection Agency and others in an effort to achieve the
Renewable Fuels Standard set by the Energy Policy Act of 2005 well before the statutory deadline.
The standard requires an annual usage rate of 7.5 billion gallons of renewable fuel by 2012.

More information about USDA's energy strategy is available at www.usda.gov/energy, including a USDA
Energy Fact Sheet, the Energy Calculator, and details of USDA's energy-related loan and grant
programs.