Brooks Dailey - September 27, 2005
Montana Farmers Union
Energy Plan
KUFM Commentary
Presented MFU President Brooks Dailey
September 27, 2005
Fuels from the farm – a promising energy plan
Even before Hurricanes Katrina and Rita made their presence and power known, the costs of harvesting and planting a crop because of fuel-related expenses had risen to unbelievable, and to many, unworkable levels.
The high and rising costs of gasoline, diesel fuel, natural gas and petroleum-derived input products such as fertilizer, chemicals and propane are adding yet another economic burden to rural America.
Agricultural producers are among the largest seasonal fuel consumers in the United States and operating expenses have increased significantly because of the inflated cost of petroleum products. With harvest mostly completed and fall planting of winter crops concluding, many farmers and ranchers have had to make difficult decisions and compromises in their operating plans.
Whether you are directly involved in agriculture or not, all of us will be feeling the energy pinch as the weather cools. For agriculture producers the increased energy costs paid by suppliers, processors and others are passed on to us as surcharges for almost everything we purchase. We, in turn, must absorb the increased costs as we are unable to pass along these increased production costs as some other businesses can because we do not set the prices for our commodities.
So what can we do? First, many have already concluded that business as usual is just not sustainable. Farmers and ranchers have already modified their plans and expectations for the year. Some may not plant winter wheat and instead hope for more favorable spring conditions. Some may change the timing of hauling decisions. Some may even evaluate getting out of the business entirely.
Already, on a national level, we have called for congressional investigations into the possibility of price gouging, price fixing, and fraud regarding the extreme volatility of energy costs at the wholesale and retail level.
And, we have urged the president to make more oil available from the Strategic Petroleum Reserve to help ease the fuel price crisis.
But these are just temporary fixes to a problem that needs a sustainable answer.
A little closer to home, given the predictions for natural gas prices this winter, many are planning how they can consolidate and conserve, both in the home and at work. For sure, former President Jimmy Carter’s advice of wearing a sweater will be sounding very practical.
Further, as an organization, we are strongly supporting renewable energy solutions – many of which are farm produced, and therefore, have a double benefit to those of us involved in production agriculture.
At our convention next month in Great Falls, you can see a personal biodiesel production system demonstration. This biodiesel system is a mini refinery small enough to fit into the back of a pickup.
These systems have great potential for on-farm usage. Depending on the model, up to 42 gallons of biodiesel per day can be produced using vegetable oil, methanol, lye, electricity and tap water. If used restaurant vegetable oil can be obtained, it is estimated that a gallon of biodiesel can be made for about 70 cents per gallon. In this time of close or negative operating margins for farmers and ranchers, every penny saved is critical.
While current and natural events have dealt a strong blow to our industry, to our economy and to the qualify of life for many across the country, these same events could rekindle a growing interest in renewable energy options for all of us. No longer does the argument ring true that finite fossil fuels are a better – a more convenient – or a cheaper choice.
Fuels from the farm are one hope for affordable and dependable energy use for today and for tomorrow.
|
|
