NEWS LINE
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TFC’s $447-million sales year
sets record; income also climbs
A good year for Tennessee
farmers, bolstered by excellent
growing conditions, translated
into record sales for Tennessee
Farmers Cooperative (TFC), a
regional farm supply and service
organization owned by 64 local
co-ops across the state. TFC’s
sales topped $447 million for the
fiscal year ending July 31, 2004.
That’s a gain of $35 million from
2003. Net income before taxes
and member programs was nearly $11
million, an increase of more than $2.7
million since 2003.
TFC, following a five-year plan
enacted in August 2002, also strengthened
its financial standing by increasing
working capital to $17.1 million —
a $3.6 million increase over 2003 and
up $10.7 million in two years. TFC
also returned more than $6.5 million
in cash to member co-ops through its
member marketing allowance, performance
and patronage programs.
Both Board Chairman Larry Paul
Harris and CEO Vernon Glover
praised the efforts of management and
employees in a banner year for the coop
as they reported the results at
TFC’s annual meeting Nov. 29 in
Nashville, attended by nearly 1,000. In
addition to outstanding crop yields,
farmers statewide also received good
prices for crops and livestock.
Glover said fertilizer volume was
462,000 tons, while feed sales were
up $860,000, with increases in minerals
and beef, horse, goat and sheep
feeds. The Home, Lawn, Specialty
Department recorded the most profitable
year since 1997. All of the Ag
Distributors Inc., (ADI) subsidiary
operations were profitable and had
sales increases. Sales of FFR seed
increased, as did sales of crop protection,
hardware, TBA (tires, batteries,
accessories) and animal health products.
“As we have grown our business,
we have also emphasized expense control,
inventory management and the
reduction of long-term debt.”
Harris challenged management and
the membership to work together to
maintain the momentum as they
address the issues of a “changing agricultural
climate that holds a lot of
uncertainty.” He noted that the 2002
Farm Census shows that the number
of Tennessee farms has climbed from
75,067 in 1992 to 87,595, but the average
size decreased from 149 to 133
acres. Just 11 percent of the farms produced
86 percent of the state’s agriculture
in 2002. Some 78 percent of the
state’s agricultural operations had less
than $10,000 in annual sales of agricultural
products.
“More and more, we’re providing
products and services to the row-crop
farmer growing hundreds or even
thousands of acres of corn, soybeans
and cotton,” Harris said. “And, at the
same time, we’re finding ways to help a
growing number of goat producers and
selling pet and horse feeds to those
farmers’ neighbors. We’ll always be
here for our farmer owners — that’s
our focus — but we must continue to
meet the needs of all those involved in
Tennessee agriculture.”
Humboldt Creamery acquires
WestFarm’s ice cream division
Humboldt Creamery Association, a
Fortuna, Calif.-based dairy co-op, has
completed acquisitions that make it
one of the nation’s largest ice cream
manufacturers and have nearly doubled
its size. Rich Ghilarducci, Humboldt’s
president and CEO, says the co-op has
chosen to remain independent by
securing its future through acquisitions
and consolidating all of its operations
in California.
Recent acquisitions include: The
Aug. 1 purchase of a 40,000-squarefoot
distribution facility and nine acres
in Stockton, Calif., from P&O Cold
Logistics; The Nov. 1 acquisition of
the ice cream division of WestFarm
Foods, which has facilities in Seattle,
San Jose and Los Angeles, and a license
of the WestFarm Foods/Darigold
brandof ice cream, and the Nov. 1
acquisition of Arctic Ice Cream in
Seattle, including its Arctic and
Vitarich Ice Cream brands.
“Humboldt Creamery will become a
full-service frozen dessert supplier to
the retail grocery industry and one of
the largest ice cream manufacturers in
the United States,” said Ghilarducci.
“This company expansion will allow us
to preserve our members’ pasturebased
family dairies and protect green
space in Northern California for generations
to come.”
In conjunction with the expansion
announcements, Ghilarducci also
announced the national launch of a
new Humboldt Creamery brand of
organic super-premium ice cream. The
product is expected to begin retail distribution
in the first quarter of 2005.
Humboldt Creamery is a co-op association
owned by 62 Northern California
dairy families and is the oldest active
dairy cooperative in the state. The
company, which celebrated its 75th
anniversary in October, produces a full
line of dairy products, including fluid
milk, powdered milk, ice cream and
frozen novelties, both conventional and
organic.
Record crop returns for
Blue Diamond members
Almond growers who deliver to
Blue Diamond received 2003 crop
returns that were 35 percent higher, on
a per-pound basis, than in 2002. The
co-op’s average payment of $2,900 per
acre shattered the old record of $2,500
per acre, set in 1997. The co-op
reported near-record net sales of
$541.9 million.
“This new revenue record is a
remarkable performance because the
2003 crop was the second largest crop
in the industry’s history and the second
billion-pound crop in a row,” Blue
Diamond President and CEO Doug
Youngdahl told owner-members at
their 94th annual meeting in Fresno,
Calif. “As a result, global consumption
reached new levels and industry shipments
exceeded one billion pounds for
the first time in history — the fifth
consecutive year of record shipments,”
Youngdahl said.
“The days of looking at large crops
with trepidation are over,” added
Youngdahl. “Ever-larger crops will be
needed in the future to support global
consumption growth.” The co-op had
43 percent growth in retail brand sales
in 2003 and has achieved more than $9
million in annual savings since 2001
from new technology and process
enhancements.
Youngdahl said almond tree plantings
are projected to exceed 50,000 net
new acres per year through 2010,
resulting in a dramatic increase in
almond supplies beginning in 2007
and 2008. Additional tonnage delivered
to Blue Diamond will support
“new products markets and additional
consumption and will keep your businesses
profitable” in years ahead, he
noted.
USDA awards $8.8 million
in rural broadband grants
USDA has announced that $8.8
million in broadband community connect
grants will be awarded to 16 communities
in 10 states to connect essential
community facilities in rural towns
and communities where no broadband
service exists. USDA believes that
technology is key to the ability of rural
businesses and rural economies to
compete in the global marketplace.
Extending broadband technology to
allow more families and communities
to access business, education, public
safety and heath services is part of the
Bush administration’s effort to expand
economic opportunity and improve the
quality of life in rural America.
One grant was awarded to the
Havasupai Tribal Council to provide
wireless broadband internet service to
the community of Supai, Havasupai
Reservation in Arizona. Located in
the southwest corner of Grand Canyon
National Park, the Supai community
will connect all critical facilities,
including public safety and health service,
public schools and homes in the
community that has a population of
503. Other grants range from the
North Slope Borough of Nuiqsut, Ala.,
to Benoit, Miss.
Communities selected
for the Broadband
Community Connect
program (the complete
list is available at
www.rurdev.usda.gov) do
not have access to broadband
connectivity for the
essential services of
police and fire protection, hospitals,
local government, libraries and
schools. The program is in its third
year and, including today’s
announcement, has invested $30.1
million in grant funds.
Ninety rural communities have
now been connected to high-speed
telecommunications through this
program. In return, the communities
will make at least 10 computers
available to the public with set
hours and instruction available for
use on the Internet. The grant program
supplements USDA Rural
Development’s standard high-speed
telecommunications loan program.
AMPI butter plant hit by fire
Cleanup was underway in early
January at the scene of a fire that damaged
the Associated Milk Producers
Inc. (AMPI) butter manufacturing and
packaging plant in New Ulm, Minn.
Workers began clearing rubble from
the exterior of the manufacturing plant
as fire and insurance investigators continued
their assessment. While the full
extent of the damage caused by the fire
was still being determined, the cooperative
was working to provide uninterrupted
service to its butter customers.
“Other butter makers from throughout
the country are generously helping
AMPI fill its orders,” said AMPI
General Manager Mark Furth.
Alert employees reported the fire
shortly after 6 p.m. on Dec. 1.
Following safety protocol, all 30
employees on duty in the plant were
immediately evacuated and no injuries
were reported. Fire officials commended
AMPI employees for their quick
action and assistance in controlling the
blaze. “AMPI did an excellent job with
its evacuation
plan,” said
New Ulm
Fire Chief
Curt Curry. “Their participation in the
process was outstanding. There were
employees on the ground helping with
the plant layout and location of hazardous
materials.”
Service to the dairy producers who
ship their milk to the plant was not
interrupted. The butter plant’s milk
receiving facility, which is housed in a
separate building, did not sustain any
damage. Milk delivered to the facility
is routinely processed at one of AMPI’s
12 other manufacturing plants that are
located throughout the upper Midwest.The butter plant primarily churns
cream and packages butter.
CHS 2004 earnings a
record $221 million
CHS Inc. reported record net
income of $221.3 million for its fiscal
year ending Aug. 31, 2004. The record
net earnings represent the highest ever
recorded by a U.S. regional agricultural
cooperative. The 2004 results compared
with net income of $123.8 million
for the period Sept. 1, 2002 - Aug.
31, 2003. Net income for 2004 exceeded
a previous company record of
$178.6 million set in fiscal 2001. Net
sales for fiscal 2004 also set a record at
$10.9 billion, compared with $9.3 billion
for fiscal 2003, largely attributed
to increased prices for
energy products and
grain.
Strong refining margins,
combined with
improved performance
by CHS lubricants and
propane, contributed to
the highest energy earnings
in the co-op’s history.
Agronomy operations,
represented by
CHS 50 percent ownership
in Agriliance, LLC,
reported earnings double
those of fiscal 2003.
CHS “outputs” businesses,
consisting of
local operations, business
services, grain marketing,
processing and
foods, reported
improved performance across the
board. Country Operations and
Services, which includes CHS local
operations, animal nutrition and sunflower
businesses, turned in its fourth
consecutive year of strong performance.
Grain marketing operations
overcame challenges in Chinese soybean
markets to complete fiscal 2004
with its best earnings in five years.
Earnings for 2004 were up significantly
over the previous year within
the processed grains and foods segment,
which consists of oilseed processing, Mexican foods, CHS ownership
in Horizon Milling LLC (a flourmilling
venture), and Ventura Foods
LLC (a vegetable oil-based food manufacturer
and packager).
CHS has realigned its business
organization and leadership responsibilities
to position the company for
growth in current and future businesses.
Under the realignment, CHS will
consist of four operating divisions:
Processing, Ag Business, Energy and
Business Solutions. There will also be
two supporting divisions: Finance and
Shared Services. Each of the six divisions
will be led by an executive vice
president. The changes took effect Jan.
1. “As CHS focuses on continuing to
add value for all of its stakeholders, it’s
essential that our structure reflects our
strategic direction and efforts to grow
in our core business areas,” said John
Johnson, president and chief executive
officer.
CHS also recently announced that
it is entering the wholesale propane
business in the Indiana, Ohio and
Michigan marketplace previously
served by Countrymark Co-op.
Bison co-op optimistic about
emerging from Chapter 11
The North American Bison
Cooperative of New Rockford, N.D.,
filed for Chapter 11 (reorganization)
bankruptcy in Fargo, N.D., in
November, but says it is in better
shape than a year ago and expects to
emerge from bankruptcy within a year.
Meanwhile, the 330-member co-op is
fighting back with a new retail brand
name, TenderBison, and will be improving
the efficiency of its processing
plant by doing custom bison slaughtering.
The co-op currently handles 250
to 600 head a month at its plant, but
has the capacity to process more than
1,000 bison or cattle each month.
Co-op CEO Dieter Pape said
$600,000 will be spent on capital
improvements this year, according to
AgWeek. “I think the changes we have
implemented will allow us to emerge
fairly quickly from Chapter 11 and
continue to be a profitable and ongoing
concern that has capacity to start
repaying members from profits to help
liquidate their deferred accounts, which
will be turned into equity,” Pape said.
UW co-op reference
book newly revised
Cooperatives: Principles and Practices
in the Twenty-First Century, a cooperative
reference book last published in
1980, has undergone an extensive revision
by Kimberly Zeuli, assistant professor,
and Bob Cropp, professor
emeritus, at the University of Wisconsin
Department of Agricultural and
Applied Economics. The book’s chapters
on organization, structure, financing
and management of cooperatives
are as relevant today as ever. Books can
be ordered (there is a charge) at:
http://cecommerce.uwex.edu/
showcat.asp?id=107. A PDF version
can be downloaded for free at:
http://cecommerce.uwex.edu/pdfs/
A1457.PDF.
Specialty grain industry
education network expands
The Midwest Shippers’ Association
(MSA) co-op will be able to strengthen
its Midwest Specialty Grain Industry
and Education Network through a
grant from The Cooperative Foundation.
“The Network provides valuable
education to producers on existing and
emerging opportunities in the identity-
preserved specialty grains industry,”
says William J. Nelson, Cooperative
Foundation president. “It also provides
producers with a network of
processors, traders, as well as domestic
and international buyers and end users
in the specialty grains industry.”
As a networking project, the contribution
will help support a promotional
DVD for the 2005 Midwest Specialty
Grains Conference and Trade Show.
The Network also includes weekly
news and information releases relating
to foreign trade leads and market intelligence.
MSA is a nonprofit, agricultural
cooperative that helps producers, producer
groups and small agribusinesses
in Minnesota, North Dakota, South
Dakota, Iowa and Wisconsin efficiently
produce and export specialty grains.
More information is available at:
www.mnshippers.org. As a private
foundation, The Cooperative Foundation
has supported cooperative business
development, education and
research projects in the Upper
Midwest for more than 50 years.
For more information, visit:
www.coopfoundation.org.
Cropp interim director
of UW Center for Co-ops
Bob Cropp, professor emeritus of
agricultural economics, will serve as
interim director of the Center for
Cooperatives at University of
Wisconsin-Madison. Cropp was
director of the center from 1990 to
2003. Anne Reynolds, who had been
serving as interim director, will
remain at the center as assistant director.
The change relieves her of
administrative responsibilities so she
can focus on developing and delivering
extension and outreach programs
and applied research.
“The center has increasing demands
for work to address critical extension
and outreach needs,” said Dean Elton
Aberle. “I commend Anne Reynolds for
her leadership as interim director while
also carrying major responsibilities for
extension, outreach and grant projects.”
Founded in 1962 as the International
Cooperative Training Center, the
UWCC provides programs for international
and domestic cooperatives.
DotCoop launches directory;
Paul Hazen to head OCDC
A directory of all active .coop Web
sites is now available from DotCooperation
LLC, the sponsor of the
cooperative-only .coop domain.
Launched in November, the directory
allows searches for co-ops by name,
location and domain name. The directory
of nearly 4,300 addresses can be
found at www.directory.coop or
through a link from the dotCoop site at
www.coop. The directory displays each
domain name; clicking on the domain
name takes you directly to the site.
“When you find co-ops on our
directory,” says NCBA CEO Paul
Hazen, “you know they are co-ops that
truly identify themselves as co-ops and
promote the co-operative principles
through their Internet identity.” The
.coop domain, approved by ICANN in
2000 and launched in early 2002, now
has more than 8,000 domain names
registered.
In other NCBA-related news,
Hazen, who has served on the
Overseas Cooperative Development
Council (OCDC) board for six years,
has been elected chair by the board.
OCDC is an association of eight international
cooperative development
organizations. As board chair, Hazen
said his top priorities will be to guide
OCDC through the transition expected
with the retirement of long-time
Executive Director Ted Weihe and to
refocus on expanding funding for
OCDC members’ international development
work.
“We need to reverse the trend
toward a declining federal commitment
to overseas cooperative development
and renew policy makers’ support
for cooperatives as a tool to build
wealth and opportunity in some of the
world’s poorest countries,” Hazen said.
“I’ll be working to ensure that OCDC
resources are focused on that core
goal.”
New funding source for
rural economic development
The U.S. Department of
Agriculture has announced the creation
of a new rural development program
that will provide a long-term
funding mechanism for loans and
grants to rural America. This new
source of capital for rural economic
development will bring new jobs to
some of the most isolated and rural
areas of the country.
USDA Rural Development’s Rural
Economic Development Loan and
Grant Program (REDLG) manages
these projects. New regulations enable
USDA to guarantee up to $3 billion in
bonds or notes of nonprofit lenders,
for up to 20 years, if the proceeds are
used for electric and telecommunications
loans. The lender, whose notes
the government will guarantee, will be
required to pay an annual fee of 30
basis points over the term of the
unpaid debt. Most of the 30 basis
points will be deposited into the
REDLG program.
The program was authorized by
Section 6101 of the 2002 Farm Bill.
Like other USDA Rural Development
programs, local leaders will make the
decisions on what projects are needed
in their communities. The REDLG
program provides zero-interest loans
and grants for all types of community
and economic development projects.
Past projects have included fire trucks,
libraries, health facilities and industrial
parks.
From the beginning of this program
in 1989, USDA Rural Development
has invested approximately $250 million
in more than 1,000 projects across
the country, leveraging an additional
$1.4 billion in private sector funds and
creating an estimated 28,000 jobs.
During the Bush administration,
approximately $90 million has been
invested, creating or saving almost
15,000 jobs.
Hanson gets co-op
leadership honor
Mark J. Hanson, chairman of
Lindquist & Vennum PLLP’s
Agribusiness and Cooperative Practice
Group, received the Minnesota
Cooperative Leadership Award during
the joint annual meeting of the
Minnesota and Wisconsin state co-op
associations. Hanson is the youngest
recipient of the award and the only
attorney to be so honored.
He is responsible for developing a
new form of business organization: a
cooperative taxed on a partnership
basis. His efforts in analyzing trends
related to the future viability of cooperatives
led to Minnesota Chapter
308B, a 2003 law intended to help
spur significant Minnesota cooperative
development. He is working with
similar legislation in Wisconsin and
Iowa as well as working with federal
officials to change federal law and
make the cooperative legal structure
more attractive. Hanson also organized
some of the first ethanol, egg
and beef-processing cooperatives
using marketing agreement pledges
and stock investment
for capitalizing
these sophisticated
businesses.
The Leadership
Award is sponsored
and administered
by the Minnesota
Association of
Cooperatives to
honor distinguished individuals for
their contributions to cooperative
business. Nominees are selected for
their leadership, vision, personal commitment,
innovation and statesmanship.
Dakota local co-ops merge
The Farmers Union Co-op
Association of Redfield-Doland has
merged with the 4 Seasons Cooperative
of Britton, both in South Dakota, effective
Feb. 1, 2005. The merger was
approved Dec. 6 at the 4 Seasons Coop’s
annual meeting. Patrons of
Redfield-Doland voted unanimously on
Nov. 22 to merge with 4 Seasons, while
there were only two dissenting votes at
the later co-op, for a 98 percent favorable
vote. The merged co-op will be
operated initially by a 16-member
board. Plans call for three directors to
go off the board each year at the first
two annual meetings, reducing the
board to nine directors.
4 Seasons Co-op’s year ending Aug.
31 was the second most profitable year
for the co-op since 1986. It had a margin
before taxes of $837,695. The
grain division showed a profit of
$102,000.
Lamb Checkoff faces vote
Sheep producers, feeders and firsthandlers
are voting to decide whether
to continue the American Lamb
Checkoff program, which promotes
year-round consumption of American
lamb and works to minimize the
volatility of seasonal lamb sales. The
four-week voting period begins Jan 31
and ends Feb. 28. The referendum is
being conducted at local county USDA
Farm Service Agency (FSA) offices. To
find your closest office, visit FSA’s Web
site: www.fsa.usda.gov/pas/default.asp.
Collections under the Lamb
Checkoff program began in July 2002,
and raise a budget for the American
Lamb Board of about $2.3 million
annually. Administrative expenses are
limited to 10 percent of budget. The
13-member board is appointed by the
Secretary of Agriculture, and the board
office is in Denver.
Record beet payments
for Minn-Dak members
Minn-Dak Farmers
Cooperative harvested net
revenues of $198.9 million for
the excellent 2003 crop,
resulting in the highest gross
beet payment in co-op history
for member-shareholders.
Addressing members at the
co-op's annual meeting in
Fargo, N.D., in early
December, Minn-Dak
Executive Vice-President
Steve Caspers said sugar content
of the 2003 crop was “an
excellent 18.7 percent -- well
above the five-year average,”
and beet purity was also good.
The co-op sliced 2.1 million tons of
beets, the second largest volume ever
processed by Minn-Dak. About 2.26
million tons of beets were harvested
from 112,800 acres in 2003, with an
average yield of 20 tons per acre.
The high-quality crop also resulted
in a good year for Minn-Dak’s marketing
subsidiaries. John Doxie, president
of United Sugars Corporation, a joint
venture which markets sugar for
Minn-Dak and two other sugarbeet
co-ops, said sales volume was up 23
percent in 2004. Midwest Agri-
Commodities Co. of San Rafael, Calif.,
marketer of Minn-Dak’s molasses and
beet pulp, also had record sales volume
and made record returns to members.
Minn-Dak Yeast Co., owned by Minn-
Dak and Sensient Technologies of
Milwaukee, Wis., recorded sales of
$7.3 million.
Minn-Dak President and CEO
David Roche said he foresees challenges
looming large on the horizon
for the co-op, including falling sugar
prices, the need for more industry promotion,
higher production costs and
trade agreements which could result in
more sugar imports. Stagnant, if not
declining, prices have been the norm
at Minn-Dak the past several years,
and the co-op has continually taken
steps to increase productivity and efficiency
to counteract the price declines
in order to cushion the impact on
shareholders, he noted. In addition,
the entire sugar industry has had to
come to terms with lower consumption
by consumers, which has prompted
sugar producers to consider new ways
to promote sugar.
Despite these hurdles, Roche said he
sees a bright future for the co-op. “The
intensity of our owners has created a
‘can do’ culture at Minn-Dak,” he said.
Victor Krabbenhoft, delivering his
last speech before retiring as Minn-
Dak board chairman, compared the
history of the co-op to a marathon.
“It’s a long run, complete with obstacles,
and those with a strong will continue
on. It’s important that we don’t
back down from these challenges, but
rather meet them head on.”
The 2004 crop sugar content is
down to 16.7 percent, due to large
amounts of rain in the fall.
USDA Ag Outlook Forum provides
insight on “front-burner” ag issues
USDA’s annual Ag Outlook Forum
will be held Feb. 24-25 in the
Washington, D.C. suburb of
Arlington, Va. Leading commodity
analysts will be on hand to discuss
planting, trade and price prospects for
farm commodities for the year ahead.
The program will focus on the impact
of science on farming, farm policy and
agricultural markets. Speakers will
also discuss issues such as Mad Cow
disease (BSE) and beef trade,
prospects for energy prices
and ethanol, international
trade talks, market integration
in North America, early
debate on the next Farm Bill
and new dietary guidelines.
There will be ample time
for networking at this popular
event, which attracted
1,400 people last year.
Attendees will receive a set of
new USDA long-term commodity
projections to 2014.
The conference will be held
at Crystal Gateway Marriott
Hotel. For program details,
registration and hotel information,
visit the conference
Web site:http://www.usda.gov/
oce/forum, or call (877) 744-3083.
Crop-based biofuels could add
$5 billion to farm profits by 2025
A new report provides further
weight to the potential benefit of
ethanol and other biofuels in reducing
America’s dependence on imported
oil, while adding $5 billion annually
to farm profits by 2025 if production
commitments are made now. “These
fuels are derived from cellulosic biomass
such as corn stover, grain straw,
straw and sugarcane waste rather than
just from grains, thus providing a further
benefit of harvesting two crops
from every field,” says Brent
Erickson, a vice president of the
Biotechnology Industry Organization
(www.bio.org).
At $40 per dry ton, the $5 billion
added profit is based on 200 million
tons of biomass, which is less than
one-sixth the total amount of biomass
farmers could produce by 2050,
according to the report “Growing
Energy: How Biofuels Can Help End
America’s Oil Dependence,” issued by
the nonprofit National Resources
Defense Council (NRDC). The result
of a two-year study by agricultural,
engineering and environmental
experts, it is the first to focus on what
bioenergy technologies can do
when commercially mature
and operating on a large scale.
In addition to adding to farm
profits, biofuels have the
potential of being cheaper
than gasoline and diesel, saving
about $20 billion per year
on fuel costs by 2050, according
to the report. Moreover,
biofuels could reduce greenhouse
gas emissions by 1.7 billion
tons per year.
“This report also addresses
some of the concerns raised
when using biomass for energy
independence,” Erickson said.
“For example, biofuels can be
competitive with gasoline and
diesel, with a price of between
59 cents and 91 cents per gallon
for the former and 86 cents per gallon
for diesel. This is the equivalent of
saving $20 billion per year in fuel costs
by 2050. Enough land is available for
biofuels to make a big contribution,
and emission concerns over low-percentage
blends of ethanol in the existing
fleet can be addressed.”
For a copy of the 96-page report
and executive summary Growing
Energy: How Biofuels Can Help End
America’s Oil Dependence, log onto:
http://www.bio.org/ind/
GrowingEnergy.pdf
USDA-EPA partnership
promotes renewable energy
USDA Rural Development and the
Environmental Protection Agency
(EPA) recently announced a new interagency
partnership to support agricultural
and business based renewable
energy systems. This agreement is part
of the Bush administration’s effort to
increase teamwork in delivering services
to rural America.
“This agreement is a triple play,”
said Agriculture Acting Under
Secretary for Rural Development
Gilbert Gonzalez. “It’s good for the
environment. It helps exploit a new
energy source — one with high growth
potential — of clean, renewable fuel to
reduce our oil imports. And it’s good
for the bottom-line of farmers, ranchers
and small businesses.”
The agreement provides for EPA
technical support of USDA in reviewing
systems for methane gas recovery
via anaerobic digestion of animal
waste. EPA will also consult on technical
guidelines for USDA Rural
Development initiatives encouraging
more state-of-the-art digester technologies.
USDA and EPA are also
investigating expanding support to
other areas. The partnership will promote
use of anaerobic digestion technology
in a way that enhances rural
agricultural development, provides
environmental benefits and increases
farm revenues through the generation
of renewable energy.
“Energy production is an exciting
growth sector for U.S. agriculture,”
said Gonzalez, “and a strong rural
economy, more jobs in rural areas,
renewable energy production and a
cleaner environment are all key elements
of President Bush’s agenda.
USDA Rural Development is committed
to aggressive leadership on these
initiatives.
The 2002 Farm Bill directs USDA
to encourage the development of
renewable energy. In 2003-04, USDA
Rural Development invested $16.9 million
in 67 anaerobic digester projects.
With leveraging, the total
investment exceeds $80 million.
These projects serve
11,300 rural households,
generate 127 GWh, and create
120 jobs.
Another $3 million going
back to Walton EMC members
For the second year in a
row, most Walton Electric
Membership Corporation
customer-owners will be
taking part in a $3 million
refund. That means $22
million has been returned to
co-op members over the
past 17 years. Most of the
refunds will appear as a
credit on electric bills, with
the average being $27. This saves more
than $30,000 in check production and
mailing costs. Refunds are based on
the amount of the customer’s annual
power bills.
Some margins are held for reserve
funds so that Walton EMC is prepared
for emergencies. Margins are also used
to help pay down debt and to make
major purchases. “But when those
margin reserves grow to more than
what’s needed for a safe financial cushion,
Walton EMC returns the extra,”
explains CEO Ronnie Lee. More than
92,000 customers will get money back.
Walton EMC is a customer-owned
electric company and serves 107,000
electric accounts in ten Northeast
Georgia counties.
