INSIDE RURAL DEVELOPMENT

USDA working with nonprofit
to boost bioenergy in Arkansas

By Jack Gleason,
Acting Administrator
USDA Rural Development
Business-Cooperative Programs

SDA Rural Development offices across the nation are working with cooperatives, individuals, partnerships and corporations to help promote the development of the nation’s rapidly emerging bio-fuel economy. This is without doubt the most exciting and promising economic development for rural America since the arrival of electricity on the farm.

We are also working with nonprofit organizations to promote renewable energy, a prime example being Winrock International. Winrock works with people in the United States and around the world to increase economic opportunity, sustain natural resources and protect the environment. It matches innovative approaches in agriculture, natural resources management, clean energy and leadership development with the unique needs of its partners.

Its U.S. programs bring global expertise home to benefit Arkansas, the Mid-South and the United States.

In 2004, through a grant from USDA Rural Development under our Rural Business Opportunities Grant program, Winrock conducted a feasibility study for establishing biodiesel production in Arkansas. Since the study was completed, one biodiesel production facility has been constructed and is operational. A second facility is under construction and plans are under way to build more.

Winrock recently hosted a tour of facilities in Eastern Arkansas for staff members from USDA Rural Development’s state office for Arkansas and myself that was very enlightening. The tour included a presentation from the Eastman Chemical facility in Batesville and site visits to England Dryer, a soybean oil extrusion facility; Patriot Fuels, a small biorefinery in Stuttgart; and the Potlatch pulp mill in Cypress Bend. These value-added activities have been made possible in part by strategic investments from USDA Rural Development.

Opportunity to prosper
The emerging bioenergy industry offers a unique opportunity for Arkansas. The potential for large-scale production of biofuels and bioenergy from cellulosic residues and dedicated energy crops is enormous, particularly in the Delta region. Achieving this potential would enhance the sustainability of the state’s agricultural sector, create thousands of new processing jobs and result in numerous environmental benefits while helping to reduce our nation’s reliance on imported energy.

Arkansas’ potential for producing biofuels and bioenergy from cellulosic materials is substantial. In addition to forestry and agricultural residues, Arkansas has the potential to redirect more than 2 million acres of farmland into production of dedicated energy crops, making Arkansas a world leader in renewable energy.

Dedicated energy crops have the potential to transform the Delta region. Farm profits could be higher than from traditional crops and long-term biomass supply contracts could reduce market risks for local farmers. Renewable energy production from dedicated cellulosic biomass has numerous environmental benefits. For every pound of carbon dioxide generated during production and consumption of biofuels or bioenergy products, an equal amount is removed from the atmosphere during the plant’s growth cycle.

Equally important, production of perennial cellulosic energy crops would use topsoil-conserving, no-till agricultural practices.

Winrock’s goals are to facilitate private sector production of and public sector support for bioenergy and to help Arkansas become a world leader in bioenergy production. USDA Rural Development is proud to provide its support for this effort.



July/August Table of Contents