The U.S. biofuel industry has long been stymied by the lack of
USDA federal crop insurance, leaving only the most adventurous
farmers willing to plant renewable energy crops.
Biofuel sources currently under development include algae,
jatropha and camelina. Of the three, camelina is increasingly
emerging as the frontrunner in attracting initial investment
worldwide, as global demand for aviation fuel for passenger
flights is now more than 40 billion gallons annually.
Camelina has a number of advantages over its
competitors, including using far less water, thus allowing it to
be grown on marginal land, thereby not taking food acreage out of
production.
Furthermore camelina has a relatively short growing season of
80 to 100 days, requires no special equipment to harvest, and the
silage remaining after processing can be fed to livestock and
poultry, with the added side benefit of increasing their omega-3
production.
Now the U.S. Department of Agriculture has given
camelina production a major shot in the arm by selecting 40
counties in Montana for a pilot program of federally backed
camelina crop insurance. The counties covered are Big Horn,
Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer,
Daniels, Dawson, Fallon, Fergus, Garfield, Glacier, Golden
Valley, Hill, Judith Basin, Lewis and Clark, Liberty, McCone,
Meagher, Musselshell, Park, Petroleum, Phillips, Pondera, Powder
River, Prairie, Richland, Roosevelt, Rosebud, Sheridan,
Stillwater, Sweet Grass, Teton, Toole, Treasure, Valley,
Wheatland, Wibaux and Yellowstone.
Montana Governor Brian Schweitzer has long championed
camelina as an ideal Montana green energy crop, commenting: "It's
been my goal to help make Montana a leader in renewable energy.
Through camelina our state has the potential to create jobs,
reduce our dependency on fossil fuels and decrease carbon
emissions."
Camelina is currently being grown in nine U.S. states
plus four Canadian provinces. Montana's production now tops
80,000 acres, while trials are going on in 12 additional states
and 37 more are considering production. The USDA program, to be
overseen by the department's Risk Management Agency, will
undoubtedly lead to a surge in Montana-based camelina production,
as its politicians have long been in the forefront of promoting
the plant.
Montana Democrat Senator Jon Tester got camelina
insurance included in the 2007 farm bill with his Biofuel Crop
Insurance Pilot Program initiative, which he inserted into the
most recent Farm Bill, because he knew the crop wouldn't blossom
in Montana unless it had the federal safety net of crop
insurance. According the USDA's announcement the insurance will
be available for the 2012 crop year. Following the USDA statement
Tester said, "There's got to be a safety net.
You don't go into new crops unless you're independently
wealthy or you have a safety net. Most farmers aren't
independently wealthy. This initiative will provide jobs and
opportunities for Montana farmers--while bringing our entire
nation closer to energy independence through home-grown,
renewable resources. I'm pleased the USDA is finally putting some
muscle behind my camelina law and providing Montana farmers the
chance to expand this promising resource and create jobs in the
process. If I had a bit more time, I'd be growing oilseeds on my
farm and investing in biofuels myself. This bill will open the
door to a whole lot of opportunities for my neighbors-and for
farmers all across Montana. Expanding biofuels in Montana is a
win-win-win situation. It provides options and more job
opportunities for farmers. It's responsible and sustainable
development of a renewable resource. And it cuts back on our
thirst for foreign oil, which will ultimately make our country
more secure." Tester is one of only two farmers in the
Senate.
The deadline for purchasing the insurance is 1 February
2012. Only spring-planted camelina grown under contract with a
processor will be eligible for coverage against damage from
adverse weather, fire, wildlife, earthquake, volcanic eruption
and insect and plant disease. The insurance will not provide
compensation for any losses attributed to insufficient or
improper application of pest or disease control measures.
Great Plains Oil and Exploration-The Camelina Co. President
Sam Huttenbauer said, "This is a critical step toward
camelina becoming a major U.S. biofuel crop
and a huge help for the farmers of Montana and North
Dakota. We greatly appreciate the assistance of the senators in
Montana, in particular Jon Tester who paved the way for this crop
with his work to get this program into the farm bill."
National Farmers Union President Tom Buis added,
"Renewable energy production is one of the most exciting
opportunities in our rural communities. I commend Senator
Tester's foresight in introducing this legislation. Public policy
can and should encourage innovation and diversification of both
our food and fuel supplies."
Among the customers lining up for camelina JP-8 aviation
fuel will be the U.S. armed forces, which have spent the last two
years extensively testing camelina's suitability, with the U.S.
Air Force earlier this certifying camelina biofuel for use in its
fleet of Globemaster transport aircraft. Given that the new
federal crop insurance will undoubtedly boost camelina feedstocks
for biofuel refineries, the Pentagon can look to Montana as a
major supporter in its efforts to go "green."
Source:
http://oilprice.com/Alternative-Energy/Biofuels/U.S.-Biofuel-Camelina-Production-Set-to-Soar.html
By. John C.K. Daly of
Oilprice.com