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Biofuels seen as economic development boost Thursday, May 10, 2007 By Aaron Sadler Stephens Washington Bureau WASHINGTON - Delta leaders Wednesday eyed a proposed $3.7 billion in funding for biofuel plant construction and research as a potential economic windfall for the poverty-stricken region. Agriculture Secretary Mike Johanns touted the Bush administration's biofuels proposals for the 2007 Farm Bill during a meeting with members of the Mississippi Delta Grassroots Caucus. The administration would allocate $2.1 billion in low-interest loans to companies that produce fuels from cellulosic materials, such as grasses, wood and sugar cane. Another $1.6 billion would be set aside for research and development of cellulosic fuels. A share of that money could be directed to the Delta, where companies are using crop byproducts to produce fuel. "I thought that was one of the brightest things said as far as something being good for the Delta," said Butch Calhoun, director of the Arkansas Department of Rural Services. Johanns said a nationwide push to generate biofuels has expanded to include more than corn producers most commonly associated with ethanol production. "It very much means that the energy phenomenon the Corn Belt has enjoyed the last two or three years is a national phenomenon," Johanns said. Johanns spent about 30 minutes discussing the Farm Bill with government and business leaders from across the eight-state Delta region. The wide-ranging legislation that governs farm subsidies, child nutrition programs, conservation and a variety of agriculture issues must be renewed every five years. The current Farm Bill was written in 2002. Lee Powell, director of the Grassroots Caucus, said the biofuels plan is one item he supports in the administration's Farm Bill proposal. But Delta farmers seeking greater federal support for crops like cotton and rice will not find it in Johanns' plan, Powell said. Johanns said the 2007 bill will have substantially less funding than in 2002, largely because crop prices are higher than five years ago and are expected to remain that way. In addition, pay-as-you-go budgeting rules in Congress will make it difficult to find additional revenue, he said. Even so, Johanns in an exchange with Harvey Joe Sanner of Des Arc, said he is convinced farmers will be better off under the proposal than the 2002 bill. That's because it increases "safety net" funding for farmers in the event prices dip lower. The administration is within two weeks of finalizing its Farm Bill proposal, Johanns said. The House and Senate Agriculture Committees are expected to approve their own versions of the measure by June, with a bill ready for the president by this fall, he said. The Congressional Budget Office projections also greatly reduce base funding for agriculture spending, from $98.9 billion in the 2002 bill to $42.4 billion this year. Rep. Mike Ross, D-Prescott, said the administration's proposal would set income guidelines for farmers who receive federal aid, known as means testing. He opposes that. "It says if you're a farmer, don't marry a doctor. That's crazy," Ross said. But the state's 4th District congressman supports other parts of the proposed bill, including the biofuels component. Ross has touted expanding biofuels use as a way to decrease the nation's reliance on foreign oil. "We have real opportunities in the Delta by investing in cellulosic ethanol," Ross said. The caucus met with Johanns and other Department of Agriculture officials on the second day of a three-day annual lobbying trip to the nation's capital. Ross, Rep. Marion Berry, D-Ark., and Sens. Blanche Lincoln and Mark Pryor, both D-Ark., addressed the group of about 100, as did Delta lawmakers from other states. The group's priorities include completion of Interstate 69 through south Arkansas; greater funding for Head Start and federal school lunch programs; and more money for the Delta Regional Authority, a government agency created to lobby for economic development in the region. The administration's fiscal 2008 budget sets aside $6 million for the authority, less than the $12 million authorized by Congress a year ago. Lawmakers vowed to find money to support the authority. "The president has been fairly unkind in his budget," Pryor said. "We always start behind the 8-ball." Ross said the nation's domestic priorities are unmet because of the war in Iraq, noting that the nation spends $12 million an hour on the war. |
