05/01/06 An incentive program for oilseeds?

Farm and Ranch May 1, 2006 Washington's State Farm Service Agency Director Jim Fitzgerald believes there is the smell of opportunity in the air. It is the scent of biodiesel. But not many northwest farmers are currently growing the canola that can be converted to biodiesel and other products. The reason Fitzgerald told a recent farm bill forum, is that at say a dryland yield of 11-hundred pounds an acre, with the current market price, the revenue is only 77-dollars an acre. As an inducement to get farmers to grow oilseeds for biodiesel Fitzgerald suggested a program for the next farm bill patterned after the Hard White Wheat Incentive Program included in the 2002 Law. Fitzgerald: "But if there was a direct payment of 11 cents a pound, or $121 dollars if we are using the 11-hundred pound yield, the $121 plus the $77 from the market would give $198 per acre. That would be the gross. It would work out to about 18 cents a pound for canola. That be enough to cover the cost of production and provide a profit." Fitzgerald said any such program would have to have a reasonable cost and there would be details to be worked out. Fitzgerald: "But the important thing is let's not take our eye off the ball here. And the ball is a renewable, alternate energy supply grown by farmers, processed in rural communities and benefit all the citizens of the United States." Fitzgerald said biodiesel production is forecast to skyrocket so it will be produced somewhere, why not here. I'm Bob Hoff and that's the Northwest Farm and Ranch Report on the Northwest Ag Information Network.