News Update

News Update
March 22, 2007

Energy Efficiency, Renewable Energy Loans and Grants Available

Agriculture Secretary Mike Johanns announced yesterday the availability of $176.5 million in loan guarantees and $11.4 million in grants to support investments in renewable energy and energy efficiency improvements by agricultural producers and small businesses.

The Renewable Energy and Energy Efficiency loan and grant program was established under Section 9006 of the 2002 Farm Bill. It provides loan guarantees and grants to agricultural producers and rural small businesses for the purchase and installation of renewable energy systems or for energy efficiency improvements.

Loan guarantees cover up to 50% of a project’s cost, not to exceed $10 million. Grants are available for up to 25% of a project's cost, not to exceed $250,000 for energy efficiency improvements and $500,000 for renewable energy systems. These loans and grants are expected to reduce greenhouse gas emissions by 0.97 million metric tons, replace 821 million barrels of foreign oil and generate almost 2 million kilowatt hours of electricity annually. The U.S. Department of Agriculture (USDA) has funded more than 800 loans and grants since the renewable energy program began in FY 2003.

Applications for grants must be completed and submitted to the appropriate USDA Rural Development state office postmarked no later than May 18. The deadline for submitting loan applications as well as for loan and grant combinations is July 2. For more information, refer to the announcement in the March 22 Federal Register or contact any state Rural Development office. Further information on rural programs is available at a local USDA Rural Development office or by visiting www.rurdev.usda.gov.

South Korea Trade Discussions Continue

Full restoration of beef trade with Korea should be a prerequisite for a U.S.-Korean Free Trade Agreement, according to American Meat Institute (AMI) President J. Patrick Boyle, who testified March 20 before the House Committee on Ways and Means Subcommittee on Trade.

“The current Korean import requirements for U.S. beef do not come close to a first stage of reopening trade,” Boyle said.

In his testimony, Boyle told the subcommittee that the U.S. government and beef industry have a proactive track record of bovine spongiform encephalopathy (BSE) prevention, and the U.S. has earned the right to export beef freely under international guidelines set by the World Organization for Animal Health (OIE).

“Despite the overwhelming scientific evidence supporting the safety of U.S. beef, more than 17 years of controls, a preliminary expert panel designation, and an agreement to restore trade, the ban persists,” Boyle said. “Therefore, we urge you and your colleagues to communicate to the South Korean government that the resumption of full beef access must occur prior to the conclusion of the FTA (free trade agreement) negotiations. Should this ban be resolved and full market access restored, we stand ready to be strong, vocal supporters of this agreement and its Congressional passage.”

For more information visit www.meatami.com.

Johanns Announces $6.3M for Biomass Utilization Projects

Secretary Johanns Monday announced the award of $6.2 million in grants to more than two dozen small businesses and community groups to develop innovative uses for woody biomass, including renewable energy and new products, from national forests.

The Administration's farm bill proposals would accelerate the development of new technologies to better utilize low-value woody biomass by authorizing $150 million in 10-year mandatory funding for Forest Service research.

According to USDA, the grants will help create markets for small-diameter material and low-valued trees removed from forest restoration activities, such as reducing hazardous fuels, handling insect and diseased conditions, or treating forestlands impacted by catastrophic weather.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.