By TIM THORNBERRY
Kentucky Correspondent

FRANKFORT, Ky. — For farmers looking to get on the renewable fuels bandwagon, the state just got a shot in the financial arm that should help.

Last week Gov. Steve Beshear announced that $2 million in stimulus funds are coming to the state via the American Recovery & Reinvestment Act (ARRA) and will provide revenue “for on-farm energy conservation, renewable energy production and regional renewable fuel projects.” The announcement was made in Shelby County on the farm of Doug Langley, 2009 Kentucky Farmer of the Year.

“It’s no secret to anybody that agriculture has been the cornerstone of Kentucky’s economy since this state was founded. It has provided a living for so many people in this state for many years. But more than that, it’s provided what it takes to live for everybody else in this commonwealth and around this country,” Beshear told the gathering.

“It has become increasingly clear how farming and energy – two keystones of Kentucky industry and its future – can have a mutually beneficial relationship. With the help of the Kentucky Agricultural Development Fund (KADF), we are positioning agriculture to be a leader in the development of alternative energy sources.”

The money will go toward the implementation of two energy-related projects as part of a joint venture between Energy and Environment Cabinet and the Governor’s Office of Agricultural Policy (GOAP). Those projects, according to the ag policy office, “will provide a two-pronged approach to Kentucky’s energy-agriculture partnership.”
One program will work with the On-farm Energy Efficiency and Production investment area of the KADF’s County Agricultural Investment Program and will help farmers increase farm energy efficiency and renewable fuel production.

“This will encourage farmers to use new technologies, renovate existing facilities and invest in other measures that conserve or generate new energy. By doing that, farmers will incur significant utility savings while also enhancing their opportunities to create even more revenue,” said Beshear.

The other program, known as the Multi-county Collaborative Agricultural Energy Initiatives Program, will use funds to “compliment tobacco settlement funds for grants to multi-county collaborations that will enhance and advance renewable energy production at the farm level.”

“With this initiative we aim to expand the acreage of energy-generating crops through a variety of conduits. We also hope to further developments in collaboration between agriculture, education and industry through an emphasis on renewable energy,” Beshear added.

“By adopting these new energy methods and these measures, farmers will not only protect the environment, which is extremely important, but will save money and become more successful.”
Energy and Environment Cabinet Secretary Len Peters as well as Roger Thomas, GOAP executive director, were with Beshear for the announcement.

“Research is under way that will help us understand how we can better take advantage of the tremendous agricultural assets we have in Kentucky,” said Peters. “Those assets will be a major component in our long-term energy strategy to develop renewable energy resources to address Kentucky’s growing demand for inexpensive but reliable fuel sources.”

Thomas said farmers will benefit greatly from these stimulus funds and agriculture and energy will help build the economy.
“All us here today believe that agriculture is the foundation for building a strong economy not only here in the Commonwealth but across the nation,” he told the gathering. “We also believe that energy will serve as one of the building blocks that will strengthen that foundation for our economy in the future.

“We believe, through this new program, it’s a way to put stimulus dollars in the hands of farmers to do two things: to encourage energy efficiency and to encourage future energy production with agriculture being the basis for that.”

Earlier this month Beshear signed an executive order forming the Executive Task Force on Biomass and Biofuels Development in Kentucky. The group will work to facilitate the development of a sustainable biomass and biofuel industry in Kentucky, according to information from the governor’s office.

“I am asking this group to take a hands-on approach in working towards finding viable energy resources that will not only address the future energy needs of Kentucky, but will develop an industry that can revitalize rural and local economies, create jobs and develop prosperity for the state as it seeks to reduce its carbon dioxide emissions,” said Beshear.