Agricultural Energy Efficiency Infrastructure: Leveraging the 2002 Farm Bill and Steps for the Future

Susanne Brooks and R. Neal Elliott

July 2007

Executive Summary

In recent years, energy efficiency programs targeting the agricultural sector have become more prevalent nationwide.  New organizations specifically dedicated to improving efficiency on farms, ranches, and rural businesses have emerged, and existing programs are widening their focus to include agricultural energy efficiency issues. Whether by offering rebates for energy-efficient farm equipment, providing online or on-farm audits, or lending technical or financial support, these programs play a key role in aiding producers and rural businesses in reducing their costs, oftentimes allowing them to stay afloat in this time of sky-rocketing fuel prices.  In turn, these successes lead to increased rural economic development, food security, reduced dependence on foreign energy sources, and improved environmental quality. 

Although energy efficiency technical assistance programs have succeeded in helping the agricultural sector take significant strides to increase its efficiency, many areas of the country are lagging behind and there are still considerable opportunities for progress to be made.  Although Section 9006, the Renewable Energy Systems and Energy Efficiency Improvements Program of the 2002 Farm Bill, has proven to be enormously successful in the states and regions that were able to acquire funding, its benefits have not been felt nationwide—many states still do not have any technical assistance programs or energy experts to assist potential beneficiaries, and thus many of those states have not been able to acquire grants.

This report examines the strengths and weaknesses of a sampling of the numerous energy efficiency programs in the agricultural sector, as well as looks at some emerging trends across the country.  In addition, it explores the relationship, if any, between the emergence or expansion of these programs and Section 9006 of the 2002 Farm Bill.  Finally, it attempts to come to some conclusions about what legislation and policy tools would be most effective at solving the deliverability issues of the 9006 program and helping to facilitate the emergence and expansion of institutions serving the rural community nationwide.  Since the 2002 Farm Bill sunsets in 2007, the upcoming Farm Bill will be the appropriate legislative vehicle to house the recommended provisions discussed in this report. 

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42 pp., 2007, $20.00, IE072