Wyoming Farm Bureau Federation News Release-November 21, 2005

 CONTACT: Kerin Clark, WyFB Media and Member Relations Director, 307.532.2002 orkclark@wyfb.org; Perry Livingston, WyFB President, 307.283.2858; Ken Hamilton, WyFB Executive Vice President, 307.721.7712 or khamilton@wyfb.org

             Farm Bureau:  United States needs to explore domestic energy

             �Second only to interest rates, the price of energy related inputs most affects U.S. agriculture�s bottom line on an annual basis,� Troy Bredenkamp, American Farm Bureau Federation (AFBF) Director of Congressional Relations, told Wyoming Farm Bureau members at their annual meeting in Casper.  �At the same time, U.S. agriculture has a tremendous opportunity, through renewable energy production, to play a significant role in solving the U.S. energy situation.�

            Projections show that by 2025 United States energy production will be 50 quadrillion Btu�s below consumption.

            Bredenkamp highlighted several factors affecting energy.  U.S. access is at the top.  �There is a current moratoria on East and West Coat along with Eastern Gulf of Mexico for energy development,� He said.  �That is along with the continued prohibition on developing 2000 acres in the Arctic National Wildlife Refuge (ANWR).�

            Bredenkamp pointed out that the proposed oil and gas exploration in ANWR is 1.5 million acres of the northern coastal plan, the size of South Carolina.  Of that area, only 2,000 acres is proposed to have a permanent foot print.

            �Up to 15B barrels of oil could come from this area,� Bredenkamp said.  �This is equivalent to a 30 year supply of Saudi Arabia imports.�

            Energy costs affect everyone.  Food and fiber producers who put food on the table are feeling a large blow by the increased costs of all energy.   

            One example is the impact on fertilizer prices due to the increase in natural gas prices.  According to Bredenkamp, due to high natural gas prices, 45% of the domestic fertilizer industry is in shut down mode causing fertilizer imports to increase.  �This is increasing our dependence of foreign sources for yet another critical feedstock,� He said.

            Comparing natural gas costs around the world shows that the United States has the highest cost per million BTUs.  Natural gas costs per million BTUs in the United States are $13.90.  While in Saudi Arabia it is only $0.75.  Other global comparisons:  Argentina, $1.60; Trinidad, $1.60; North Africa, $0.90; Japan, $5.25 and Australia, $3.85. 

            �We�ve done this to ourselves,� Bredenkamp stated.  �Access restrictions in the United States have locked up �known� natural gas resources.�

            �To alleviate natural gas prices, the United States policy must increase our domestic natural gas supply by increasing access on federal lands in the Rocky Mountains, outer continental shelf and Alaska, including ANWR,� He continued.

            The Energy Policy Act of 2005 became law in August and included several AFBF priorities.  �A renewable fuels standard, biodiesel tax credits, and tax credits for wind and biomass were all included in the Energy Bill,� Bredenkamp explained.  �Still, more work needs to be done.�

            The AFBF energy policy goals include increasing the use of agricultural-based renewable energy resources.  �A robust renewable fuels standard (RFS) that will increase the use of ethanol and biodiesel is necessary,� Bredenkamp continued.  �Renewable energy production from agriculture could do a lot to solve the U.S. energy situation.�

            �With energy costs affecting all Americans, from those who are paying exorbitant prices to fuel their vehicles and heat their homes to those who are paying exorbitant prices to produce food and fiber, work must continue to increase domestic energy production,� Bredenkamp concluded.

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