Financial Incentives Proposed for Farmers to Produce the Next Generation of Bioenergy Crops

‘Reinvest in Minnesota-Clean Energy’ Would Drive Production of Clean Biofuels from Native Perennials such as Prairie Grass

CONTACT: Jim Falk, LSP State Policy Committee, 320-333-8073
Bobby King, LSP State Policy Organizer, 612-722-6377
Sen. Ellen Anderson, Chair, Senate Environment Finance Committee, 651-296-5537

2/25/08
ST. PAUL, Minn. — Reinvest in Minnesota-Clean Energy (RIM-Clean Energy) was a hot topic at the Land Stewardship Project’s 3rd Annual Family Farm Breakfast at the Capitol on Feb. 19. At the event over 200 legislators, farmers and supporters heard about the potential this initiative offers for combining biofuels production with conservation on working farmland.  

At the breakfast, Sen. Ellen Anderson, Chair of the Minnesota Senate’s Environment and Natural Resources Finance Committee, spoke to the importance of RIM-Clean Energy.

“Minnesota needs to continue as a national leader in bioenergy. This means creating incentives to move the industry towards native perennials as feedstock for bioenergy,” Sen. Anderson said.  “Paying the farmers who want to be early innovators and move into this type of production makes sense and that is what RIM-Clean Energy does.”

Anderson’s Committee on Thursday passed its recommendations to the Senate Bonding Committee for $15 million in bonding for the program. Gov. Pawlenty has proposed $3 million in his bonding package. The House currently has no funding for the program. 

Jim Falk, a farmer and seed dealer from Murdock, Minn., and member of the Land Stewardship Project’s State Policy Committee, was impressed with what he heard at the Family Farm Breakfast. Falk was at the Capitol that day to educate legislators about the importance of this proposed new program. Research has shown that shifting the plantings on a relatively small amount of strategically located farmland from annual crops to perennial plant systems such as grass can dramatically improve water quality.

“I’m impressed that Senator Anderson and other urban environmentalists recognize what a benefit to the environment RIM–Clean Energy will be,” said Falk.  “Farmers want options that include perennial crops and the state will only be able to meet water quality goals with more perennial crops on the land. It makes sense for the state to invest in farmers who are willing to be early innovators and drive this change by growing native perennials for bioenergy.” 

RIM–Clean Energy is a working lands conservation program that supports farmers who grow native perennials for bioenergy. Authorized by the Minnesota Legislature last session but not yet funded, the program will pay farmers for a 20-year commitment to growing native perennials for bioenergy. The agreement requires best management practices that limit use of pesticides and fertilizers. The program will be funded through bonding, which will be used by the state to purchase 20-year easements on property. LSP, along with 46 other conservation, wildlife and environmental groups, is working to get $46 million in bonding funds to launch this program. This would provide for approximately 13,000 acres of native perennials in Minnesota.

RIM-Clean Energy would be an economic development engine for farmers, rural economies and the bioenergy sector. Funded at $46 million, farmers growing these energy crops can expect $32 million in sales to bioenergy facilities over 20 years.  In addition to investing in farmers, the program could create 50 new fulltime jobs and more than 85 seasonal jobs in native seed production and prairie installation and management industries, according to an analysis by Clean Energy Minnesota.

“Minnesota needs to be ahead of the curve on this,” said Falk.  “If we can’t get RIM-Clean Energy going this session Minnesota will be playing catch-up and our state’s farmers and rural communities will be the worse off for it.”

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MORE INFORMATION:
Land Stewardship Project fact sheet: “Growing Green Fuel: RIM-Clean Energy” http://www.landstewardshipproject.org/pdf/RIM-CE_fact_sheet.pdf

Clean Energy Minnesota fact sheet: www.cleanenergyminnesota.org/fuels.htm

Minnesota Board of Water and Soil Resources report on RIM-Clean Energy Program: www.bwsr.state.mn.us/RIM-CE.html