Lt. Governor, U.S. Secretary of Ag., local congressman speak at briefing
Indiana to bem ajor player in biofuel market
Cindy DiFazio - Staff Writer

Taking the podium at the Dillsboro Municipal Building on Wednesday, May 31, Indiana Lieutenant Governor Becky Skillman greeted the crowd of 50 or so saying, “This is my fourth visit to Dearborn County since taking office.” Skillman explained that she, along with U.S. Secretary of Agriculture, Mike Johanns and Congressman Mike Sodrel were here to talk about agriculture, energy and renewable energy.

Skillman informed the gathering that Indiana is the fifth largest producer of corn and the fourth largest producer of soybeans in the U.S., positioning the Hoosier state to be a major player in the biofuel market. In the state of Indiana, there are currently nine ethanol plants and three bio-diesel plants in the works. The ethanol plants could produce 720,000,000 gallons and the bio-diesel plants 95,000,000 gallons. “This will put $13,000,000 in the pockets of Hoosier farmers,” Skillman announced.
Last year, there was not a single fuel station in Indiana that carried E-85, the ethanol-mix gasoline used in hybrid automobiles. There are now 30 in operation. Meijer’s in Indiana has committed to 19 E-85 outlets in the state.

Further, Skillman said that the Indy Racing League used a 10% ethanol mix this year, and plans to use 100% ethanol next year. Additionally, both the recreational vehicle used by Governor Mitch Daniels, and the Chevrolet Tahoe used by Lt. Governor Skillman, are powered by soy bio-diesel fuel.
Skillman ended her part of the program by describing the town of Reynolds in White County. Reynolds is being touted as Bio-town USA, meeting all its energy needs with bio-energy. Reynolds, population 500, is the highest per capita user of bio-fuels and a model for future “bio-towns.” While not being a viable option for the entire country at the moment, Skillman stated that it is an “important part of our long-term energy strategy” and, “We’re very proud in Indiana to be leading the way.”

Congressman Mike Sodrel then took the stage. Besides the bio-options listed by Skillman, Sodrel advanced the idea of clean coal technology. He stated that clean coal technology is being pursued locally in Madison, and that its use as a fuel can cut emissions by 90%.

Sodrel introduced the U.S. Secretary of Agriculture to the gathering by sharing a brief biography of Secretary Mike Johanns. Johanns grew up on a dairy farm in Iowa, later becoming the governor of Nebraska. Sodrel assured, “He is a strong advocate for farmers.” Sodrel further stated Johann’s strong ties to the Hoosier state through wife, Stephanie, a former Lancaster County Commissioner and State Senator who is from Elkhart. Johann’s deputy, Chuck Connor, also hails from Indiana.

Secretary Johanns gave the group a few facts and figures to consider. The United States, he said, will export $67,000,000,000 in farm products this year. Farm production is increasing at a rate of about 2% per year. “We have to stay aggressive in export,” Johanns exhorted. Some of the challenges farmers face lie in rising energy, shipping, production and diesel costs.

Johanns stated that farming in his home state of Nebraska requires extensive irrigation, noting that Indiana faces the same problem. He said that changing from high to low pressure irrigation saves $41.00 per acre. Johanns encouraged Indiana farmers to visit the USDA website for more information on energy-saving strategies for their crops.

Talking about Indiana’s future in the bio-fuel industry, Johanns declared, “I applaud the leadership of your congressman, your lieutenant governor and your governor when it comes to renewable fuels. Your state, ladies and gentlemen, is a natural.” He went on to explain that the current administration has invested nearly $290,000,000 in renewable energy since 2001. Johanns stated, “We would simply rather get our fuel from America’s corn and soybean fields than from foreign oil fields.”

In the president’s budget proposal for 2007, the USDA’s core investment in energy-related concerns will be approximately $85,000,000, but it also expects to provide more than $250,000,000 per year in rural development funds. This will help farmers to manage high energy costs while encouraging the development of renewable energy sources. Johanns summarized, “Increasing the efficiency and availability of alternative energy sources, I believe, will continue to be a high priority as we approach the ’07 Farm Bill.”

Johanns said that Congressman Mike Sodrel’s appointment to the Agriculture Committee is very important because that committee will write the new farm bill. He stressed, “It is very, very important. We want to ensure that farm policy is responsive to producers today.” Johanns reported that renewable fuels are a top priority in the Hoosier state. He related that the president of the Indiana Farm Bureau recently said that Indiana wants 25% of its fuels to come from renewable resources by 2025. Johanns quoted the Farm Bureau president as saying, “We think this next farm bill should include food, feed, fiber and fuel, and we really think that will add to the profitability of farmers.” Johanns said, “I could not agree more. That’s a powerful statement.”

There have been 52 Farm Bill forums throughout the country where local farmers were asked for direct input on what farm policy should be. Johanns has participated in more than 20 of these sessions in at least 20 different states. “We received a lot of valuable information from these forums,” Johanns said. The transcripts of the forums have been released on the USDA website.

He has asked the USDA economists, which he said, “I would suggest to you are some of the best in the world,” to perform in-depth analysis of topics coming from the countrywide farm forums to inform the debate on the new farm bill’s priorities. Two of these priorities are risk management and conservation. He said that he told farmers in Nebraska when he was governor, “You know we call it farming, but quite honestly, these days it’s risk management that we’re doing.”

Regarding conservation, Johanns said that economists are now working on those papers and will release their findings in June.

Johanns stated that these analysis papers are not intended to suggest policy. He stated, “While we are not ready yet to put forward specific policy proposals, I can tell you that I believe the next farm bill must be predictable and equitable.”

Following Johanns’ comments, Congressman Sodrel and Lieutenant Governor Skillman joined the secretary for a brief question and answer session.

The first question from a gentleman in the assembly concerned the animal identification system. Secretary Johanns stated that it is a voluntary system. He said that although he has read articles that say that the government wants all pets to have an identification ear tag, nothing could be further from the truth. “We’re not interested in (identifying) pets,” he explained. Secondly, Johanns said that in his position he is very interested in the competition, and that Australia is well along with its animal identification systems and so is Canada. That positions their countries well in the international marketplace. Johanns stated that his fundamental position is that animal identification should be driven by the private sector. “I believe that the best opportunity for a well-managed, price competitive, innovative system is going to be in the private sector where companies are competing for your business.” Lieutenant Governor Skillman added that most of us are very conservative Hoosiers, adding, “We don’t like the heavy hand of government.” But, she also said that it is important for states to work closely with federal government because what effects Washington effects individual states.

A woman in the audience spoke up regarding the “buy local, buy fresh” idea. She stated that, “It’s an exciting possibility that small farms and medium-sized farms can participate in the buy local, buy fresh kind of thing and get their share of the benefits.” Congressman Sodrel stated that locally farmers are providing meat for schools, jails and other institutions. Lieutenant Governor Skillman was supportive of the idea, and gave this opinion, “The farm to school programs could use more money.”

Finally, a gentleman said that he was curious about what the USDA was doing regarding land-grant universities researching agriculture bio-fuels. Spillman responded, “Purdue has been such a partner for us.” She went on to say that one goal is to commercialize products that come from Purdue research. Secretary Johanns said that Purdue has also received 40 acres in New Albany to build a facility that will center on advanced technology. Congressman Sodrel added, “Its first mission was to be a technology center.” He believes that as the school grows, its mission will expand. “We certainly welcome Purdue to southern Indiana,” Sodrel said.

In closing, Secretary Johanns reiterated that Indiana is a natural for producing renewable and sustainable fuels. He said that renewable fuels are a key piece of agriculture’s future and he thinks we will continue to see that grow.

MIKE MAUNE PHOTO Pictured from left are: Lt. Governor Becky Skillman, U.S. Secretary of Agriculture Mike Johanns and Ninth District Congressman Mike Sodrel. The three spoke at an agriculture briefing held last week at the Dillsboro Municipal Building.