Agriculture Reference
In-Depth Information
r
u r a L
e
C of n of m i C
b
e n e f i t s
The potential impact that energy production can have on the economies of agricul-
ture and of rural communities in developed and developing countries is like nothing
previously seen in the history of agriculture.
Industrialization of agriculture
, that is,
the need to expand to farm larger areas to survive economically, has led to consoli-
dation of farms and therefore to fewer farms and to the general reduction in rural
opportunities; fewer farms require fewer businesses to provide products and services
for their support. The whole process has reduced job opportunities in rural areas and
has reduced the quality of rural life. This has led to a reduced rural population, which
has furthered the reduction in the desirable aspects of life in rural areas and added to
the decline in economic opportunity. Many rural areas have experienced this spiral
of decline. Bioenergy production can provide an increased economic vitality and
quality of life for the farmers and communities involved. This increased vitality has
occurred in communities in which corn-to-ethanol refineries have been built.
The impact of cellulosic biomass production and conversion to liquid fuel will
be much larger than the impact of ethanol from corn grain. In the United States,
the total potential farm gate income for production of cellulosic biomass for energy
could well be larger than that from traditional production of corn and soybean, the
country's two major agricultural crops, combined. Prices received for production of
commodity crops vary, as will prices for sale of bioenergy feedstocks. A couple of
years ago, it was projected that biomass would be worth $40 per dry ton or a poten-
tial farm gate income of $40 billion for 1 billion dry tons. At the time, the farm gate
income for corn and soybean combined was less than $40 billion, and oil sold for $60
per barrel. Currently, oil is over $130 per barrel, and prices for corn and soybean have
also increased, as has the price for bioenergy feedstocks, some now selling for $110
per ton. Although prices cannot be predicted with certainty, if the $500 plus billion
per year currently spent to import oil were spent to obtain domestically produced
bioenergy, the impact on not only the rural economy but also the nation's economy
would be very positive. An infusion of income of that magnitude would reverse the
spiral of rural decline, initiate restoration of job opportunities, and restore vitality to
agriculture and to agricultural communities.
In addition to biomass, rural agricultural areas are often locations appropriate for
collection of other forms of renewable energy, including solar and wind.
bIoeneRgy: conceRns
There are also many barriers and concerns that must be overcome and addressed
if agriculture and forestry are to become major energy producers. Although many
promote bioenergy as the preferred option to fossil energy, especially for liquid
transportation fuel, others have doubts. Energy efficiency, food, climate, land use,
and water are among the concerns raised. As ethanol and biodiesel production has
increased, biofuels have been pointed to as the cause of, as having contributed to, or
as likely to exacerbate a wide range of concerns. The issues are already being raised,
generally in opposition, with regard to the production of ethanol from corn and, to a
lesser degree, with the production of biodiesel from soybean. There is concern that
