02/27/07 Bush Touts Biofuels

Bush touts biofuels. I'm Greg Martin with today's Line On Agriculture. Last week, President Bush held a panel discussion on high tech research being done in the effort to develop new efficient methods of producing cellulosic ethanol. The discussion was held in North Carolina at a plant that produces enzymes used in ethanol production and the President was quick to acknowledge the tension being created among different segments of the U.S. ag industry due to the high demand for corn. BUSH: The problem is we got a lot of hog growers around the United States who are beginning to feel the pinch as a result of high corn prices. A lot of the cattle people around the United States -- I have got a few of them in my home state of Texas -- they`re worried about high corn prices affecting their making a livelihood. In other words, the demand for corn, because of agricultural use, and now energy use, is causing corn prices to go up. I bet you the Agriculture Commissioner is hearing from folks. The President says new research could well hold the key to unlocking unused sources of ingredients for biofuel production. And at the same time - he says it will take some of the burden off of the U.S. livestock industry. BUSH: The question then is, how do you achieve your goal of less dependence on oil without breaking your farmers -- without breaking your hog raisers -- corn farmers happen to like it, but I`m talking about the -- (laughter) -- people dependent on corn. And here`s how: You develop new technologies that will enable you to make ethanol from wood chips, or stalk grass, or agricultural waste. The Bush administration has proposed billions of dollars for research and development of new bioenergy products and manufacturing methods in its recent budget. The President says that the current energy crunch - while being hard to deal with - is actually presenting some tremendous opportunities for those with new ideas. BUSH: And these are exciting times, they really are. I`ve always said, America needs to stay on the leading edge of technological change. It will mean we remain a really important economy in the world, but it will also mean that our folks will be able to find good high-paying jobs. In this case, being on the leading edge of technological change means that we`ll also be able to deal simultaneous with economic insecurities that come when China demands more for oil, the world produces less, the price of oil goes up, and so does the price of gas at the pump. In his State of trecent he Union address, Bush called for replacing 20-percent of the nation`s gasoline supply with biofuels within the next 10 years. That's today's Line On Agriculture. I'm Greg Martin on the Northwest Ag Information Network.