State of Jefferson - Last Tuesday the Klamath Cattlemen's Association
invited a guest speaker to talk about if biofuels are feasible and how
it will effect them.
Oregon State University professor, Bill Jaeger, from the Department of
Agriculture, Resources and Economics Department, presented a study he
had completed called "Corn, Ethanol, Cows, Tortillas and
Biofuels. Is Ethanol the future energy source for us or are there
other alternatives?"
Jaeger said his study looked at several different aspects of using
biofuels. One consideration was cost. This included social cost such
as government subsidies and private costs verses private revenue or is
this commercially competitive.
The other aspects looked at were whether other goals could be met by
producing more biofuel. Could biofuels help the country gain energy
independence or meet other environmental goals such as reducing
greenhouse gases?
According to Jaeger, he studied corn based ethanol, wood based ethanol
and canola based bio-diesel. His report concluded that with current
technology, wood based ethanol was not commercially feasible. Using
corn for ethanol does work out financially if you have the large
amounts of corn and enough cows to eat the corn bi-product. This is
why most large ethanol plants are currently based in the Midwest.
The product which showed the most economical promise was bio-diesel
made from canola. But, even with this potential, large scale
operations had many challenges to face. According to Jaeger, biofuels
will not solve our energy situation.
"The idea we can grow all of our oil is not true and for true
biofuel believers this is an inconvenient truth," he said.
Jaeger said by increasing gas mileage in Oregon one mile per gallon,
all vehicles would save more fuel than 12 large scale ethanol plants
could produce. He said it will also have a ripple effect on many other
products. From the cost of tortillas to cattle prices, many different
industries will suffer from higher feed products used to make biofuel.
Local cattle rancher Glenn Barrett sat down with the Pioneer Press
after the meeting. Barrett feeds cattle in the Midwest because of the
lower costs of feed. Barrett said the use of corn for ethanol use
directly effects the price of feed which effects his profitability.
"We are in a changing energy environment and it is an exciting
time," he said.
He fully supports the development of biofuels and said it is here to
stay. The problem Barrett sees is that the government provides a large
subsidy to the ethanol plants which raises the cost of the feed he
uses.
"The government subsidies are not going anywhere," he said.
But it creates an unfair trade balance when the government subsidizes
one industry at the cost of another.
Another person who spoke out during this presentation was Rich
Roseberg, of the OSU - Klamath Basin Research and Extension Center.
Roseburg brought up the point that Jaeger only focused on large scale
commercial ethanol plants. He said that smaller scale local biofuel
plants which utilize locally grown and processed products showed more
potential. Roseberg told the Pioneer Press that what seemed more
feasible for our area was diesel from oil seeds such as canola instead
of trying to produce ethanol from corn.
"Biofuels are not a silver bullet, but every little bit
helps," according to Roseberg.
It would take eight million acres of canola to replace the diesel used
in Oregon. He said there is no way we can produce all of the fuel
needed, "but can we produce five or ten percent."
Roseberg feels that large growers or even small communities can
benefit from the production of biofuels. He said it makes sense for
growers to have a fixed fuel cost and a known supply. Roseberg said a
grower could take five to ten percent of his acreage and dedicate it
to the production of biofuels which would provide enough fuel to
operate the farm. In the 1800s it took up to 60 percent of a farms
acreage to provide the power to farm. This acreage was hay used to
feed the draft animals all year but it was what powered the farm.
There are examples out there of the agricultural
community coming together and making biofuels work for them. In
Hereford, Texas, an ethanol plant was built to help the slowing
economy of the area. With the new plant, more corn was raised which
helped the area farmers. The corn bi-product from the ethanol
production was feed in local feedlots and more and more cattle were
being feed and new feedlots built. The town then collected the manure
from the feedlots and built a methane plant which provided the
electricity for the city. In their case they took advantage of this
new technology and created a booming economy around it.
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