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Senator Klobuchar Wins Passage of Cellulosic Ethanol and Consumer Access to E85 Pumps in 2007 Farm Bill

Senate passes bipartisan bill to improve vital programs for family farmers

December 14, 2007

Washington, D.C. – Today, U.S. Senator Amy Klobuchar voted for the forward-looking 2007 Farm Bill that passed the U.S. Senate by a vote of 79-14.  The bill includes a stronger safety net for Minnesota farmers and ranchers, permanent disaster relief and a groundbreaking energy title that includes several initiatives that Klobuchar authored and secured in the final bill.

“After visiting farmers all over our state, it is clear that they need this bill,” said Klobuchar. “This bipartisan effort builds on the success of the 2002 farm bill and strengthens the safety net for our Minnesota farmers.”

Klobuchar authored key initiatives in the Farm Bill that will invest in the next generation of renewable fuels.  Included in the final bill is Klobuchar’s first-of-its-kind provision to encourage American farmers to produce cellulosic crops.  Klobuchar also secured a provision that will increase consumer access to renewable fuels.  Agriculture Committee Chairman Harkin (D-IA) recognized Sen. Klobuchar’s work on the historic energy provisions in the Farm Bill stating:

“There are several progressive elements of this farm bill – investments in renewable energy, conservation, nutrition and rural development in addition to a new income protection option for producers,” said Sen. Harkin.  “Senator Klobuchar from the beginning advocated strong new incentives for farmers to produce energy crops and support for rural energy facilities and biorefineries in addition to common-sense reform of farm payments.  It was obvious she was listening to Minnesotans and carrying their message to the Senate.”

The cellulosic provision in the farm bill was modeled after Sen. Klobuchar’s “Farm-to-Fuel Investment Act,” which aims to reduce American dependence on foreign oil by providing transition assistance for farmers to grow dedicated energy crops, like switchgrass which can be grown on marginal land solely for the purpose of producing energy.

“Minnesota farmers have already completely changed the way we look at energy, and they will continue to be a key part of our nation’s energy policy,” said Klobuchar.  “Investing in our farmers is essential for America to achieve energy independence.”

The farm bill also includes Klobuchar’s “Ethanol Education and Expansion Act of 2007” to provide grants through the U.S. Department of Agriculture (USDA) to farmer-owned ethanol producers to install additional E-85 pumps at rural gas stations as well as the equipment needed to sell E-85 directly to gas stations.  This language will expand access to E-85 and ensure that more drivers across the country have access to home-grown ethanol and the lower prices that come with it.

“My goal is to ensure hard-working Americans aren’t spending all of their money at the pump while oil companies rake in profits,” said Klobuchar. “By dramatically increasing the availability of E-85, Americans will be able to choose domestically-produced fuel, while helping farmers invest in homegrown renewable energy and reducing our dependence on foreign oil.”

The Agriculture committee also included Klobuchar’s amendment to increase funding for “The Beginning Farmer and Rancher Development Program,” which will create opportunities for farmers and ranchers in developing markets like organic farming and energy production.  The amendment will provide mentoring and outreach for new farmers, and training in business planning and credit-building – the skills they need to succeed and stay on the land.

The legislation will also increase funding for the Beginning Farmer and Rancher Individual Development Account (IDA) Pilot Program.  This initiative will support matched savings accounts to help new farmers invest in land, buildings and equipment, and start building equity in farming operations.

And because the timber industry is crucial to Minnesota’s economy, the Senate Farm Bill also includes a vital provision addressing fluctuations in the lumber market that have put hundreds of Minnesota logging and lumber mill jobs at risk. This amendment grants more flexibility to the U.S. Forest Service to adjust logging contracts in response to market downtowns and use a pricing index that more accurately reflects market conditions.

The bipartisan bill includes many reforms to provisions Klobuchar sees as vital to improving America’s farm policy and investing in farmers.  In addition to a strong energy title, the bill also includes long overdue permanent disaster assistance for farmers and strong conservation provisions. 

Permanent Disaster Assistance is particularly important to Minnesota and neighboring states that have seen droughts, flooding and other disasters in years. The provision will help family farmers with the financial fallout of natural disasters and bad weather.  The Farm Bill also strengthens programs for dairy and sugarbeet producers, restoring the safety net for dairy farmers and protecting sugarbeet producers from a possible surge of imports in the coming years.

“The permanent disaster program means a great deal to our farmers and ranchers in the Midwest facing financial hardships,” said Klobuchar.  “Our hardworking families shouldn’t have to come to Congress with a tin cup when they are struggling to stay in business during severe cycles of drought and flooding.”

The Farm Bill increases funding for conservation programs by more than $ 4 billion to improve the effectiveness of programs that help Minnesota’s environment and ensure that Minnesota farmers and ranchers will continue to have rich and productive farmland.

The Senate also voted on Senator Klobuchar’s groundbreaking proposal to reform federal farm subsidies.  The Klobuchar amendment won 48 votes; however, Senate rules require 60 votes for the amendment to become part of the larger farm bill.

“I knew this would be an uphill struggle,” Klobuchar said, “but it was worth the effort to make sure that we are spending the public’s money wisely and that federal support is going to the nation’s hardworking farmers and not to urban millionaires.”

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