Farm Security and Rural Investment Act of 2002

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Farm Security and Rural Investment Act of 2002
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Rural Development

• Mandatory spending programs
• Spending over the life of the bill (6 years)
• Water and waste infrastructure backlog-360
  million
• Value added agriculture--240 million
• Broadband-- 100 million
• Rural strategic investment program--100 million
• Rural business investment program-100 million
• Television loan guarantees-80 million
• Firefighters and emergency personnel-50 million
• Total mandatory spending-1,030 million

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Rural Development Loans and Guarantees

• To be used to fund pending projects
• Water and wastewater grants
• Emergency community water grants
• Total 360 million (mandatory)

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Value Added Agriculture Product Market
Development Grants

• Defines value added agriculture
• Renewable energy is an eligible purpose (energy
  cooperatives)
• Grants to producers and producer groups up to
  500,000
• 40 million per year
• Total 240 million (mandatory)

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Rural Broadband Access

• Loan and Loan Guarantee for rural broadband
  service
• Providers of broad band telecommunication
  services, as well as, state and local governments
  are eligible
• 20 million per year for 4 years , 10 million
  for each of last 2 years in budget authority
• Total 100 million (mandatory)

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Rural Strategic Investment Program

• National Board on Rural America
• 14 members
• 100 million one-time funding (mandatory)
• 8 million for planning grants to Regional Boards
  (at least 80)
• 87 million for innovation grants to Regional
  Boards

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Rural Strategic Investment Program

• Regional Investment Boards
• Regional areas must show outmigration
• More than one county less than a state
• Develops Regional Plans
• Infrastructure, human capital services, financing
• Innovation grants to carry out regional plans
• Up to 3 million per region

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Rural Strategic Investment Program

• National Conference on Rural America
• Telecommunications, health, transportation, human
  capital, diversification, financing, etc.
• 2 million one-time funding (mandatory)

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Rural Business Investment Program

• To create and provide grants to rural business
  investment companies
• Grants of 10 percent of private capital up to 1
  million
• 280 million in loan guarantees
• 44 million one-time authorization for grants and
  administrative costs
• Cost is 100 million (mandatory)

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Local Television Loan Guarantees

• 80 million one-time mandatory allocation
• Unused funds are shifted to Rural Broadband
  Access Program

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Rural Firefighters and Emergency Personnel Grant
Fund

• Scholarships and support of training centers for
  emergency personnel
• 10 million per year mandatory allocation

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Intergovernmental Rural Policy Working Group

• Sense of Congress Proposal that the President
  should
• Appoint a special assistant for rural policy
• Designate senior officers in each agency to
  provide rural policy leadership
• Create a rural policy working group comprised of
  special assistant to the President and agency
  designees

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Rural Economic Development Loan and Grant
(REDLD) Program

• Creates a new source of funding to be used by
  rural electric and telephone cooperative to fund
  rural development projects
• New guarantees will allow bonds to be used lower
  interest rate, decreasing the cost of elect
  improvements

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Business and Industry (BI) Loan Guarantee Program

• Guarantees funds to buy stock in all types of
  existing farmer cooperatives
• Simplifies paperwork for loan applications

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Establishes Northern Great Plains Regional
Authority

• The authority is expected to develop a series of
  comprehensive coordinated plans for the economic
  development of the region (Iowa, Minnesota,
  Nebraska, north Dakota, and south Dakota)
• Authorization appropriations of 30 million per
  year

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Why Did Chairman Harkin Want an Energy Title in
the Farm Bill?

• To increase farm income
• To support rural economic development
• To bolster energy security and independence
• Reduce energy price spikes
• To benefit the environment and public health

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Biomass Opportunities are Great

• DOE estimates tripling biomass energy could
  provide up to 20 billion in new income for
  farmers and rural communities this same
  increase could reduce GHG emissions by the same
  amount as taking 70 million cars off the road

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Biofuels Make Sense

• Biofuels represent future of value added
  agriculture
• Ethanol industry demand for corn increases value
  of each bushel sold by 0.14, or 1.4 billion
• USDA has found each Btu used to produce a Btu of
  gasoline could be used to produce 8 Btus of
  ethanol
• Can be produced from most crops, in most places

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On-Farm Energy Efficiency Opportunities

• Efficiency savings of 10 to 30 readily
  achievable through farm audits and related
  programs (ACEEE)
• Hogging the Light Iowa State researchers showed
  that 1000 hog farms could save energy with
  efficient lighting while simultaneously
  benefiting piglet development
• Dairy Dairy farm energy audits in NY helped
  reduce consumption by 25 to 50 by increasing
  milk pumping efficiency

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Biobased Product Development

• Speeding development, commercialization and
  adoption of biobased products benefits farmers
  and rural areas, an emerging biobased products
  industry, and the environment.

H. Ford taking an axe to the trunk he made from
soybeans
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Summary of Farm Bill Energy Provisions

• First ever energy title IX 405 million over 6
  years
• Conservation title II Wind and biomass energy
  development allowed on Conservation Reserve
  Program lands
• Rural Development Title VI Renewable Energy
  eligible for grant and loan programs
• Research Title VII Energy efficiency supported

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Energy Title Highlights

• Sec. 9002 Federal Procurement of Biobased
  Products
• Federal agencies must
• give preference to products on biobased products
  list (created by USDA)
• Incorporate preference in agency guidelines and
  establish a preferential procurement program
• Require use of biobased products to maximum
  extent (price, performance, availability)

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Eleven Biobased Categories

• Adhesives
• Construction composites
• Fuel additives
• Landscaping products/compost
• Lubricants/functional fluids

• Materials/Fibers/Paper/Packing
• Paints and coatings
• Plastics
• Solvents/Cleaners/Ag Chemicals
• Sorbents
• Vegetable Oil Inks

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Voluntary USDA Label

• Manufacturers can receive a USDA certified
  biobased product label if they meet certain
  criteria established by agency
• Concept similar to DOE/EPA Energy Star program,
  but for biobased products only
• Intended to further support agricultural
  producers and biobased products industry

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Biorefinery Development Grants

• Supports commercialization of new and emerging
  technologies for converting biomass into fuels,
  chemicals and electricity from renewable
  resources
• Consultation role for DOE
• USDA grants available on a competitive basis up
  to 30 of development/construction costs of
  projects
• Authorized, funding subject to appropriations

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Biodiesel Fuel Program

• USDA grants for public education on benefits of
  biodiesel fuel use by govt and private entities
  operating vehicle fleets and others
• Consultation role for DOE
• Eligibility limited to non-profits and
  institutions of higher education with expertise
  in this area
• 1million/yr in 03-07

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Energy Audit and Renewable Energy Development

• New competitive grant program for organizations
  to assist farmers, ranchers by conducting energy
  efficiency audits and renewable energy
  assessments linked in part to financing in 9006
• Consultation role for DOE
• Recipients must pay 25 of the cost of the audit
• Eligible grantees to carry out program include
  regional energy centers, State energy office,
  REC/utility etc
• Authorized and funding subject to appropriations

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RE Systems Energy Efficiency Improvements

• USDA to make low-interest loans, loan guarantees,
  and grants to farmers, ranchers, rural small
  businesses to purchase RE systems, and make
  energy efficiency improvements
• Consultation role for DOE
• Cost-share capped at 50
• Considerations include type of system, quantity
  of energy likely to be generated, expected
  environmental benefits, payback period etc
• 23m/yr for 03-07

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Biomass RD

• Extends authority of the Biomass RD Act of 2000
  through September 2007
• Acts goal is to find breakthroughs for biomass
  conversion into sustainable fuels, chemicals, and
  power
• Funding at 5m in 2002, 14m/yr in 03-07
• Additional 49m authorized in 02-07

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Bioenergy Program

• Continues CCC payment support program for
  producers of ethanol and biodiesel (bioenergy)
  derived from various commodities, and cellulosic
  commodities (such as hybrid poplars and
  switchgrass)
• Payments higher to smaller producers
• Cap of 5 for any one producer on total funds
  available
• Up to 150m/yr from 03 to 06 is available from
  the CCC to carry out the program

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Conservation

• Increases conservation funding 80 above current
  level. The biggest increase in conservation
  spending in a farm bill EVER.
• 17.1 billion in new funding for a total of 38.5
  billion over the next 10 years.
• Strong new investment in existing conservation
  programs and creates new programs.

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Conservation Security Program

• A voluntary, locally-driven, flexible program
  that provides incentive payments to all
  participating farmers.
• Rewards farmers for adopting new conservation
  practices and for maintaining already adopted
  practices.
• Payments rise with greater conservation.

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Strong Spending for Existing Conservation Programs
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Strong Spending for New Conservation Programs
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Contacts for Senator Harkin

• Des Moines Office
• 210 Walnut Street Rm.733
• Federal Building
• Des Moines, Iowa 50309
• [phone]

• Washington DC Office
• 731 Hart Senate Office Bldg.
• Washington, D.C. 20510
• [phone]

Senate Agriculture Committee 328-A Russell Senate
Office Bldg. Washington, D.C. 20510 (202)
224-2035
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Further contacts

• Websites
• http//harkin.senate.gov
• http//agriculture.senate.gov
• http//www.usda.gov
• http//www.usda.gov/farmbill/index.html
• Email contacts
• tom_harkin_at_senate.gov
• ellen_huntoon_at_harkin.senate.gov
• bob_soukup_at_harkin.senate.gov