Statement of

U.S. Senator Tom Harkin (D-IA)

Hearing on Energy Security and Energy Efficiency of Agriculture
Senate Committee on Agriculture, Nutrition and Forestry

I would like to thank the Chairman for holding this important hearing today on energy security, a subject of extreme national importance. Clearly, agriculture is greatly affected by energy supplies and costs. But, Agriculture can also play an important role both in securing the future energy needs of our nation and in making our nation more energy efficient.

It is clear from the testimony we will hear today and from a similar hearing held last October that it is only a matter of time before the world faces another oil crisis. The Middle East remains volatile and at the same time will remain the major supplier of oil. By 2010 this region may control up to 75% of the world oil export market, resulting in an astonishing transfer of wealth to these nations. Elsewhere, especially Asia, oil demand will continue to grow, leading to increased competition for supplies.

I have long been concerned about our national energy policy and the long-term implications of our dependence on foreign oil. We witnessed the effects of oil shocks on our economy in the 1970s. All of the rosy economic projections that have made it easier to balance the budget would all go out the window with a small sustained increase in the price of oil.

First, agriculture can continue to become more energy efficient. In the past decade, we have witnessed substantial shifts to new cultivation practices and cropping patterns that have reduced tillage. The new revolution in biotechnology will continue to reduce the need for pesticides and further reduce the energy dependence of agriculture.

Second, I believe that agriculture has the potential to meet substantial energy needs by supplying clean-burning renewable fuels for several purposes.

Ethanol: The current ethanol program tax-exemption has been hugely successful in encouraging ethanol as a fuel additive. Ethanol production has jumped from 20 million gallons in 1979, the year the tax incentive was introduced, to a high of 1.5 billion gallons produced in 1995. Ethanol plants have sprung up across the nation, providing several billion dollars in value-added income for farmers and economic activity for rural America.

Biomass: Biomass has a huge potential to supply additional energy needs. The USDA and the Department of Energy have a number of pilot projects underway where electric power plants are being modified in order to use biomass mixed with coal. In Iowa, I have been working on such a project using switchgrass in cooperation with the Charitan Valley RC&D. That pilot project is the first step in developing "electro farming" which converts switchgrass and other biomass to Hydrogen and generate electricity . We will be taking a crop that preserves erodible soils and turn it into energy, making money for farmers, lowering our dependence on imported oil and helping the environment at the same time.

Biodiesel: This is an example of another promising new technology which can provide a new source of renewable energy. The technology exists to convert the oils in many seed crops to diesel fuels, oils and lubricants, reducing our dependence on foreign sources for these products. In addition, biodiesel is non-toxic and biodegradable. Imagine trucks and buses that do not belch out the familiar black diesel smoke because they are burning biodiesel.

As you can see, Mr Chairman I have a great deal of interest in this topic. I believe work in alternative energy also complements my interest in developing new uses for agricultural commodities. It is penny-wise and pound foolish not to be investing in renewable fuel technology to a greater extent. I think it makes much more sense to create wealth and generate economic opportunity for the farmers and rural communities of this nation than to continue to line the pockets of Middle Eastern oil sheiks.

All of these technologies and more are within our grasp. We are currently funding renewable energy research at a paltry sum compared with the importance of energy security to our national interest. Instead we continue to spend hundreds of billions annually on a military force to protect foreign oil supplies. Mr Chairman, we must continue to enhance our investment in the development of alternative fuels from agriculture. I look forward to working with you to accomplish this important goal.