April 26, 2013

USDA, dairy producers extend agreement on energy efficiency projects

USDA Secretary Tom Vilsack and US dairy producers have renewed their agreement to accelerate the adoption of innovative waste-to-energy projects and energy efficiency improvements on US dairy farms.

The pact, which helps producers diversify revenues and reduce utility expenses on their operations, extends a Memorandum of Understanding (MOU) signed in Copenhagen, Denmark, in 2009.

"Through this renewed commitment, USDA and the Innovation Centre for US Dairy will continue research that helps dairy farmers improve the sustainability of their operations," Vilsack said. "This vital research also will support the dairy industry as it works to reach its long-term goal of reducing greenhouse gas emissions by 25% by 2020."

The Secretary signed the agreement at the White House and was joined by representatives of the Innovation Centre for US Dairy and Dairy Management, including Thomas P. Gallagher, CEO of the centre. One objective of the MOU is to increase the construction of anaerobic digesters and explore innovative ways to use products previously considered waste streams from dairy production, processing and handling.

USDA support for agricultural and waste-to-energy research has played a key role in the agreement's success to date. Since signing the MOU, USDA has made nearly 180 awards that helped finance the development, construction, and biogas production of anaerobic digester systems with Rural Development programmes, such as the Rural Energy for America Programme (REAP), Bioenergy Programme for Advanced Biofuels, Business and Industry Guaranteed Loan Programme, Value Added Producer Grants, amongst others. These systems capture methane and produce renewable energy for on-farm use and sale onto the electric grid.

Additionally, during this period, USDA awarded approximately 140 REAP loans and grants to help dairy farmers develop other types of renewable energy and energy efficiency systems at their operations. Also, USDA's Natural Resources Conservation Service (NRCS) has provided US$257 million in funding since 2009 that has helped more than 6,000 dairy farmers plan and implement conservation practices to improve sustainability. NRCS support for the dairy industry has resulted in 354 on-farm and in-plant energy audits as well as 18 conservation innovation grants for dairy-related projects during the past three years.

Anaerobic digester technology is a proven method of capturing methane from waste products, such as manure, and converting into heat and electricity. The technology utilises generators that are fuelled by the captured methane. Dairy operations with anaerobic digesters routinely generate enough electricity to power hundreds of homes per year.

President Obama's plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way - strengthening America's economy, small towns and rural communities. USDA's investments in rural communities support the rural way of life that stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.

USDA has a portfolio of programmes designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.