12/13/05 Addressing ag energy

12/13/05 Addressing ag energy

As the continued stretch of high fuel and fertilizer costs drains ag producers and industries of cash and cash reserves, more and more farmers and agribusinesses have been coming to U.S.D.A. and asking them to do something. Backing up the claims of hardship with stats is U.S.D.A. Chief Economist Keith Collins. COLLINS: Farmers' production expenses will go up by about $5.3 billion dollars compared to calendar year 2004. That $5.3 billion dollars is principally fuel but it is also lubrication, oils, fertilizers, and electricity. So recently, U.S.D.A. announced the game plan. The comprehensive energy strategy proposed by Ag Secretary Mike Johanns and other U.S.D.A officials addresses both short term and long term solutions to the energy dilemma. And the strategy starts with the work of a U.S.D.A. Energy Council. JOHANNS: I am directing this newly formed council to review U.S.D.A.'s existing energy related activities, authorities, and resources, and recommend how with other government and private sector entities, we can maximize the effectiveness of our current programs and resources. In short, the Council will identify what additional steps U.S.D.A. needs to take to be a difference maker when it comes to U.S. energy independence, and the stability of America's rural communities. One question that might come up from a taxpayer, a farmer, or both, is "How much is this new plan going to cost me?" Johanns was quick to point out the plan does not involve any extra money for ag producers. In fact, one key short term aspect of the plan is providing relief for producers borrowing more money to pay higher fuel and fertilizer costs. JOHANNS: I am directing our Farm Service Agency to maximize the use of our guaranteed and direct farm loan program, to help eligible producers who face credit challenges due to higher energy costs. That also includes an increase in Rural Development loan money to aid producers and rural businesses to create renewable energy systems and businesses. Also as way to help producers save costs, U.S.D.A. has updated its Energy Estimator&the so-called Energy Calculator & at its website & www.usda.gov. But there are more aspects of the plan that will be rolled out in coming months. More on that in our next program.
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