National Council of Farmer Cooperatives
Representing the Business Interests of Agriculture

Washington, DC – At a hearing of the Senate Committee on Agriculture, Nutrition and Forestry, the National Council of Farmer Cooperatives (NCFC) emphasized that farmer-owned cooperatives play a vital role in helping the United States meet renewable and energy independence goals. Co-ops also help farmers improve their income from the marketplace and contribute to economic growth in rural America.

Testifying on NCFC's behalf was Robert Grabarski, a farmer director of CHS —the nation's largest farmer cooperative—and a dairy producer from Arkdale, Wisconsin.

"Farmer owned cooperatives and limited liability companies (LLCs) account for nearly half the ethanol production in the United States," Grabarski testified. "It is this farmer-ownership and local decision making in the industry that should ensure that rural America -- and not just the short-term investors of Wall Street -- benefit from this country's new interest in domestically produced renewable fuels."

Grabarski used as an example CHS's lead role in the renewable fuel industry; the cooperative marketed more than 500 million gallons of ethanol blended fuels in 2005, and has also been active in the biodiesel market.

Grabarski also outlined NCFC's work to ensure that animal agriculture has a stake in the renewable fuels industry by maximizing the use of manure as a feedstock for renewable energy through the use of methane digester technology.

"If Congress is committed to renewable energy -- and not just renewable fuels – policy and incentives must be put in place, much like it has been for ethanol and biodiesel, to drive the production and the market," said Grabarski. "Using manure as a feedstock and applying anaerobic digestion technology is clearly a win-win for U.S. agriculture and taxpayers alike."

Among the specific recommendations made to the Committee as it begins writing the next farm bill are:

• Strengthening current energy title provisions to encourage development, production and use of renewable energy from crops and livestock.
• Supporting an increase in the Renewable Fuels Standard beyond 2012 and the goals of the 25x'25 initiative, a movement working towards securing 25 percent of our energy from renewable by the year 2025;
• Supporting more research into the development of cellulosic ethanol;
• Maintaining and strengthening federal procurement, loan, grant and research and promotion programs;
• Maintaining and strengthening energy related research programs;
• Extending all the current renewable motor fuel tax incentives.

NCFC is the national association representing America's farmer cooperatives. There are nearly 3,000 farmer cooperatives across the U.S. whose members include a majority of our nation's more than 2 million farmers, ranchers and growers. These farmer cooperative businesses handle, process, and market agricultural commodities and related products; furnish farm supplies; and provide credit and associated financial services. Earnings from these activities are returned to their members on a patronage basis. Farmer cooperatives also provide jobs for nearly 250,000 Americans, many in rural areas, with a combined payroll of over $8 billion.