Marginal Land Tapped for Biofuels
New York land bank co-op could be first of its kind
By Anne Todd
USDA Rural Development
ost of the land around Danby, in upstate New
York, is considered marginal for farming.
Goldenrod, a weed, grows naturally in
abundance, as do perennial grasses. Further,
the number of farmers in the area has been
declining, resulting in less cultivation of the land (which
quickly reverts to brush when not cultivated). Because of
these conditions, many fields are not very productive.
While others might view this as a signal of decline, Danby
resident Elizabeth Keokosky saw opportunity in those wild,
woolly fields.
Keokosky, a Cornell University employee who is pursuing
a master's degree in city and regional planning, realized that
the marginal land she saw all around her was ideal for the
alternative energy biofuels market, in part because it doesn’t
compete with farmland dedicated to food production.
She came up with the idea of forming a land bank
cooperative that would allow local farmland owners to market
their grass to be sold as bio-feedstock.
Pilot takes shape
Keokosky soon set to work organizing a pilot project
called the Danby Land Bank Cooperative. Under this pilot
project, local member-producers of the co-op would lease
their land to be harvested as biofeedstock for grass pellets or
briquettes to burn as fuel.
“Our estimates indicate that biomass could heat up to 40
percent of the homes in the county, and that assumes average
efficiency. If homes were super-insulated that number could
be larger,” says Ed Marx, Tompkins County Commissioner of
Planning and Public Works.
In return, farmers’ land would be cleared for free and they
would receive tax benefits, supplies and — eventually, if all
goes as planned — a share of the profits generated. If
implemented, Keokosky believes this proposed cooperative
model could be the first of its kind in the United States.
New York farmers are eligible for a real property tax
reduction, known as an agricultural assessment, if they have
at least seven acres of productive agricultural land and gross
at least $10,000 in annual sales. By participating in the
cooperative land bank, member-producers may become
eligible for this agricultural assessment.
In February, Keokosky held the first meeting with Danby
residents to discuss the proposed project. The people in
attendance, including landowners, citizens and town board
members, were enthusiastic about the concept and excited
about the possibility of Danby entering the alternative energy
market.
Tompkins County teamed up with Cornell to apply for a
$500,000 grant from the U.S. Environmental Protection
Agency (EPA) to establish a county-wide rural biomass
demonstration project and implement a self-sustaining
biomass fuel model for the county. The rural biomass project
would have accounted for about half of the $500,000.
While they were not successful in the quest for the EPA
grant, the co-op is working closely with Cornell Cooperative
Extension of Tompkins County, which has played a
leadership role in all aspects of this effort, to find other
funding sources.
Economic potential
Since the kick-off meeting only a few months ago, 20 local
land owners have joined the pilot and contributed more than
300 acres toward the project. In addition, a steering
committee and advisory committee have been formed to
support the pilot and move forward toward full realization of
the land bank. Members of the Tompkins County Planning
Department and Cornell University Cooperative Extension
are advisors to the project.
“We want the land bank to become the trusted entity that
will bring biofuels entrepreneurs to the area,” says Keokosky.
She sees an ideal opportunity to create an economic “virtuous
cycle” for the community, where the land bank would provide
the bio-feedstock and local suppliers would then distribute
the grass pellets to consumers for fuel.
The economic potential for the land bank cooperative in
the biofuels market, and the resulting benefits for the Danby
community, are significant. For example, in the future, the
land bank could invest in a local pellet mill to produce its
own briquettes. This would reduce costs, increase profits and
bring more jobs to Danby. In addition, the land bank could
expand into other biofuels production, such as biochar, a
feedstock byproduct. As the project moves forward, it will
create an impetus for grants and other development
opportunities in Danby.
What’s next for land bank?
Keokosky hopes that the project will ultimately expand
Danby’s business opportunities, provide networking and
growth opportunities for local producers, and sustain the
local economy and soils. She has almost met all the goals for
the first year of the pilot project: She is on track to sell some
of the goldenrod to a distant pellet producer and sell hay a
member has donated. The two sales will provide more than
the necessary $10,000 in gross sales for the pilot project,
though contractor costs will need to be subtracted.
Working closely with Cornell Cooperative Extension of
Tompkins County, the county is researching and seeking
funding sources for the Danby Land Bank project. Keokosky
hopes to be able to use some of those funds, if approved, for
the legal work needed to formally incorporate as a
cooperative organization.
The Danby Land Bank Cooperative recently launched a
Web site at: http://www.danbylandbank.com. The Web site
will promote its mission and services, its goals for 2010 and
provide information and resources about grass-based
bioenergy to member-producers and the public. To learn
more about the Danby project or the benefits of grass pellet
use, visit the Web site or send e-mail to info@danbyland
bank.com.
A true grassroots effort
Ed Marx, Tompkins County Commissioner of Planning and
Public Works, discusses more details of the land bank
cooperative project:
Question: Will there be any help for county residents in
purchasing the special stoves needed to burn the biomass
pellets? Do you think it will it require a “hard sell” to get
consumers to convert to using biomass pellets?
Ed Marx: “The idea of the project is to demonstrate both the
technology and the economics of transitioning to this heat
source. The purchase and installation of the heating unit will
be heavily subsidized for participants in return for their
agreeing to supply the data for the study. We hope that
demonstrating both the practicality and the economic
benefit of using biomass will spur others to make the
decision to change to biomass as a heating fuel. We don't
expect that this will occur in a wholesale manner
immediately, but as existing heating equipment needs to be
replaced and fossil fuel sources become increasingly
expensive, a gradual transition would occur.”
Q: How important is a local ownership structure for the Land
Bank Cooperative?
A: “The benefit of the local ownership structure is that by
helping to cover the costs of rural land ownership, it will
allow local people to continue to live on the land and
contribute to a revitalized rural economy. The hope is that
the cooperative will provide them with the ability to manage
the resource for local benefit. This is truly a grassroots effort
(excuse the pun).”
Q: How important is a local pellet plant to the economic
viability and long term success of the land bank
cooperative? Can the county do anything to facilitate
development of a local plant?
A: “The local pellet plant is essential. We need to be able to
demonstrate a reliable local supply in order to give people
the confidence to change the source of something so critical
as their heating fuel. Also, a local processor is essential to
the economics of the local biomass resource. Transporting
biomass long distances is not likely to be economically
efficient or environmentally sustainable in the long run. The
grant would provide some seed money to help in getting the
local mill up and running. We may also be able to offer other
economic incentives through our Tompkins County Industrial
Development Agency or through other Federal or State
programs.”
Q: Going forward, what do you think the biggest challenge
will be to take this project from a pilot phase to a sustained
operation?
A: “As with any small business or new industry, I suspect
that scaling up will pose some challenges. The Land Bank
Cooperative will either need to grow or spawn similar
groups around the county. The same is true for the
pelletizing operation, the purveyors of heating equipment,
etc. However, partners in the community are working to
simultaneously develop all aspects of the supply chain for
both the fuel and equipment, and we firmly believe that all of
these challenges can be overcome.”
