Farm Bill Renewable Energy Programs Cut By 
House Appropriations Committee

Carol Werner , Executive Director, of the Environmental and Energy Study Institute (EESI), issued the following statement on the spending bill passed on Wednesday, June 25 by the House Appropriations Agriculture Subcommittee for fiscal year 2004 that eliminates spending for both the new grants and loans program passed as part of the Farm Security and Rural Investment Act of 2002 (H.R. 2646):

“Passage of the 2002 Farm Bill was a bipartisan victory for renewable energy and for rural America .  Legislators in both the House and Senate worked diligently to include several incentives that were aimed at spurring the growth of renewable energy within the agricultural sector.    The Renewable Energy and Energy Efficiency Improvements Program (Sec. 9006) of the Energy Title and the Value-Added Agricultural Market Product Development Grants Program (Sec. 6401) of the Rural Development Title were designed to do just that.  Unfortunately, the spending bill recently passed by the House Appropriations Agriculture Subcommittee eliminates spending for both programs.

“Congress provided $23 million a year in mandatory funds, under section 9006 of the Farm Bill, to provide grants, loans, and loan guarantees to farmers, ranchers, and rural small businesses for the development of renewable energy projects and energy efficiency improvements.  This program was designed to help farmers develop desperately needed new income streams in the form of renewable energy, such as wind, biomass, and solar energy, and to help meet the nation’s critical energy needs in an environmentally clean way.  This is a ‘win-win’ approach, which was embraced by the administration when enacted last year.  Yet the administration’s proposed FY2004 budget provides only $3 million for section 9006, breaking a promise to rural America .

“Congress also provided $40 million a year in mandatory funds for the Value-Added Agricultural Market Product Development Grants program, which was established to help American farmers adapt to the challenges of marketing their products in an increasingly global economy. The program helps farmers stay in business by developing innovative new uses for their products and enter into new markets. The Renewable Energy System and Energy Efficiency Improvements Program would provide grants and loans to farmers, ranchers, and rural small businesses to help them reduce their energy bills and become net producers of renewable energy. The greatest strength of American agriculture has always been the entrepreneurial spirit of our farmers and ranchers.

“Sections 6401 and 9006 of the 2002 Farm Bill will promote rural economic development, greater energy independence, and improved environmental quality. Hopefully, Congress will correct itself and preserve the funding for these innovative programs.”

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