06/15/06 Time to get Renewable

Time to get renewable. I'm Greg Martin with today's Line On Agriculture. According to National Farmers Union President Tom Buis - it`s an exciting time for U.S. agriculture and U.S. producers. He says there are a number of opportunities available to farmers and ranchers - including the opportunity to domestically produce energy. Buis says the ability to produce renewable fuels not only boosts farm income - but creates economic activity in the rural communities where ethanol plants are located. But when there`s supply - Buis says you need demand. And when there`s demand - Buis notes there must be a vehicle for distribution. Right now - he says that`s a problem. BUIS: We know we can make E85. We know we can make it cheaper than gasoline and we know it's better for our environment and better for our country except getting it distributed. We sort of have the chicken or the egg analogy here. The auto manufacturers want to produce these flex fuel vehicles in greater numbers but then you have to have access to be able to buy it and currently less than 700 of the 170,000 gas stations nationwide offer E85. We have to get access to that market as well and when you do then you will see true competition. Let the consumer make the choice based upon the economics and based upon their personal situation. That's the way it ought to work and that's what we are pushing for. But according to Buis - that`s simply not going to happen without the help of the lawmakers on Capitol Hill. BUIS: The oil industry which controls the distribution process at the pump, they're saying well we don't want to make the conversion, expensive conversion to E85 unless there's automobiles out there and a market for them. So someone has to move first and I think this is where the role of the federal government comes in. They have to step up and say, look, we're going to make sure you have these opportunities. We're either going to mandate that gas stations offer E85 and or offer incentives for them to do some and the same for the production of flex fuel vehicles. Buis says it`s time to wake up and take a page from Brazil`s playbook. BUIS: 30 years ago we all got a wake up call with Arab oil embargo. We went back to sleep. They put their nose to the grind stone, invested in the technology, invested in the research, mandated that all gas stations have to offer both alcohol fuels and gasoline, and now they're energy self sufficient and we're not. So we can do it but you have to have the political will and with $3 a gallon gasoline, I think Washington is finally getting the message. Buis is quick to point out the ethanol industry is still a young industry - and won`t solve all of the country`s energy problems overnight. He says it`s all a process - but he says America`s producers are certainly part of the solution. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.