1 Agriculture and Renewable Energy Sponsored by Tennessee Department of Agriculture The University of Tennessee at Martin

2 Alternative Energy Issues What is driving the question? –Environmental issues Greenhouse gases, global warming, fossil fuel depletion.. –National security Dependence on foreign nations for vital industry component. –Global instability Middle East –$$$$$$$$$ American pocket book typically translates into policy change.

3 Alternative Energy Issues The United States imports more than 60% of its petroleum –two-thirds of which is used to fuel vehicles in the form of gasoline and diesel. The demand for petroleum imports is increasing. –Much of the worldwide petroleum reserves located in politically volatile countries –United States is vulnerable to supply disruptions.

4 The Role of Agriculture

5 The Call to Energy Security “ To build a future of energy security, we must trust in the creative genius of American researchers and entrepreneurs and empower them to pioneer a new generation of clean energy technology. Our security, our prosperity, and our environment all require reducing our dependence on oil.” President George W. Bush Energy Independence and Security Act of 2007

6 National Agricultural Statistics Service, 2008

7 History of U.S. Ethanol Production

8 New RFS signed Dec. 19, 2007 YearConventional Biofuel Advanced Biofuel Cellulosic Biofuel Biomass Diesel Undiff Adv Biofuel Total RFS (BGY) Ethanol

9

10 Current & Under Construction Capacity In 2007, there were 142 existing ethanol plants with a capacity to produce 8.9 Billion Gallons/Year (BGY) Another 67 plants are now under construction with a planned capacity of an additional 5.1 BGY Total existing and under-construction capacity of 13.0 BGY

11 National Agricultural Statistics Service, 2008

12 Source: National Biodiesel Board, 2008

13 How Can Tennessee Agriculture Help? 2007 Tennessee acreage –Corn 870,000 acres –Soybeans 1.04 million acres Future Projections –Ethanol 31.5 billion gallons or 20% of projected U.S. fuel use by 2015? –Would require 95.6 million acres of corn. –Include expanded acreage in Tennessee –Result in $ corn Happy Farmers! National Agricultural Statistics Service, 2008

14 A Possible Future of Agriculture Corn as a feed for livestock will probably decline. Beef and dairy will consume increased Dried Distillers Grains. Possibly see shrinking poultry and pork markets due to expected higher feed costs. The end result, consumers will pay for energy through fuel and food.

15 Special Thanks Tennessee Department of Agriculture University of Tennessee at Martin Dr. Bill Herndon, Mississippi State University