National Council of Farmer Cooperatives
Representing the Business Interests of Agriculture

Washington, DC – Farmer cooperatives and their members can play an important role in helping America achieve energy independence through renewable means, including ethanol, biodiesel, and manure conversion. The comments came during testimony before the House Small Business Committee who was investigating the impact of the renewable energy industry upon rural America.

Testifying on NCFC's behalf was Leon Graves, the Director of Operations and Regulatory Affairs for Dairy Marketing Services, Inc., based in Syracuse, N.Y. While emphasizing the role that farmer-owned businesses play in the ethanol and biodiesel industries, Graves focused on the role that animal agriculture could play as a source of homegrown, renewable energy, should the federal government provide incentives and market drivers.

"Federal resources and funding are desperately needed to develop the waste to energy market in order to restore profitability, deal with waste issues, and participate in the renewable energy boom," testified Graves. "NCFC has been investigating opportunities to provide animal agriculture a stake in the renewable fuels industry."

"Figures demonstrate that animal agriculture can boost on farm income by 19- 29% by becoming a producer of renewable energy," Graves continued.

Graves said the 7,000 or so farms on which anaerobic digestion is currently feasible could generate up to 6 million megawatt-hours of electricity annually, enough to light all the homes in Washington, DC for two years.

In conclusion, Graves testified, "We cannot ignore the fact that by using manure as a feedstock to produce gas, fuel or electricity, we are positively addressing many very important issues. First, we will be increasing the country's ability to produce its own energy. Second, we will be addressing an expensive environmental management issue which includes odor and waste water concerns. And third, we will be capturing methane gas and decreasing carbon dioxide emissions. This is clearly a win-win for livestock and poultry producers and consumers in urban areas alike."

NCFC is a 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.