Farmers may get new chance for energy funds

By LIZ SWITZER, The Daily News, lswitzer@bgdailynews.com

Farm producers who missed out on federal energy stimulus funds in 2009 may get another chance to qualify in 2010 through the On-farm Energy Efficiency and Production investment area of the Kentucky Agricultural Development Fund’s County Agricultural Investment Program.

The energy efficiency incentive - lauded by state agricultural policymakers as a means for farmers to boost their bottom lines as energy costs rise - will be open to agricultural producers in all Kentucky counties in 2010 with any funds that remain from the 2009 sign-up, which ended Nov. 13.

Another application period is likely in late February or early March, said Bryan Thomas, compliance specialist with the Governor’s Office of Agricultural Policy in Frankfort.

“It is a given that our energy costs are going to continue to go up, and the sooner farmers can adopt some of these energy-efficient practices, the quicker they will get the return on it,” Thomas said. “And it helps our utility providers. If we can lower the overall demand for energy, then they don’t have to build new power plants that put so much strain on the existing infrastructure.”

Through the cost-share program, many energy upgrades are likely to pay for themselves in one to two years in energy savings, but if a farmer has to initially make a choice to fund such items on an individual basis, the choice is more likely to be a quicker pay-back item instead of an energy-efficient choice, said Timothy D. Hughes, GOAP senior policy analyst.

“The advantages of the program are that it helps the individual producer to move in a direction to make decisions on energy efficiency that they would not do otherwise,” Hughes said. “It provides them with the incentive to do that at the on-farm level.”

On-farm Energy Efficiency and Production is one of the 11 investment areas under the County Agricultural Investment Program, which offers assistance to agriculture producers for energy efficiency in farm operations, production of biomass crops or production of alternative energy for on-farm use.

Gov. Steve Beshear announced in September that more than $2 million in stimulus funds would be available to Kentucky agriculture under the American Recovery & Reinvestment Act for on-farm energy conservation, renewable energy production and regional renewable fuel projects.

As a result of a partnership between the Kentucky Energy and Environment Cabinet and the Governor’s Office of Agricultural Policy, two energy-related programs are being implemented using federal stimulus funds.

A portion of the funds will provide a variety of opportunities for Kentucky farm families to increase farm energy efficiency and renewable fuel production, working in tandem with the On-farm Energy Efficiency and Production area of CAIP.

The remaining portion is earmarked for a Multi-county Collaborative Agricultural Energy Initiatives Program and will be used to complement tobacco settlement funds for grants to multicounty collaborations in order to enhance and advance renewable energy production at the farm level. Funding will be made available there for energy efficiency applications and renewable energy production.

“These are the type of investments that will make a farmer money long term,” Thomas said. “A lot of times we think it may cost a lot of money to do something, but we are finding that some of these are very inexpensive type upgrades so we want to get farmers thinking about making some of these investments.”

Sam Lawson, a Kentucky Agricultural Development Board member from Warren County, said: “The farmers out here are pretty creative. Give them a little bit of support and a little guidance and there is going to be a whole shopping list of ideas to get them started, from solar panels on their barn facilities to some wind opportunities.”

Energy stimulus incentives provide 25 percent reimbursement of the actual cost of a federally qualified energy saving item, up to $10,000. Permissible items include, but are not limited to, energy audits, energy efficient farm building components, on-farm energy upgrades and on-farm energy efficiency training.

All applications received from across the commonwealth will be reviewed and scored by a committee composed of representatives from GOAP, the Kentucky Agricultural Development Board, the UK College of Agriculture and a Rural Electric Cooperative.

— Questions about the application process may be directed to Bryan Thomas at (502) 564-4627 or bryan.thomas@ky.gov.

MCTC project could help Ky. farmers, energy producers

By MISTY MAYNARD, Staff Writer

Wednesday, November 18, 2009 1:15 AM EST

Taking their cue from a pilot project the University of Kentucky's College of Agriculture started, Maysville Community and Technical College plans to plant switchgrass on five acres of the campus to discover whether it might prove to be another way farmers can diversify their agricultural operations and be used as a biofuel for power plants.

East Kentucky Power Cooperative is partnering with UK in the pilot program and Carrie Taylor, associate professor and horticulture coordinator for Workforce Solutions at MCTC, said she hopes to sell the switchgrass harvested at MCTC to power plants like EKPC. Switchgrass is mixed with coal feedstock to fuel power plants.

Dennis Perry, instructional specialist for agriculture at the Rowan campus of the community college, actually suggested the project to Taylor. He said he learned of UK's project and decided that since there was so much space on the Maysville campus, it would be a good location for a similar project.

"The ultimate goal of this is to help create a new product that can be raised on farms," Perry said.


In addition to being used as a biofuel, switchgrass can be used as feed for livestock.

Diversification is important, Taylor said, especially in light of the changes to the tobacco industry. Farmers interested in trying switchgrass can visit the campus and learn about the crop and it's maintenance.

Taylor said switchgrass is a perennial native to Kentucky and relatively easy to maintain. She will monitor it for diseases, fungus and other potentially harmful factors with the assistance of inmates from the Mason County Detention Center. Those inmates are involved in a horticulture work program and take part in other projects as well.

Taylor endorsed the switchgrass project as something that engages many from the community, including farm supply companies and small business owners, which are often interconnected. They are working with the advisement of UK and partnering with extension offices, Taylor said.

Perry and Taylor were not sure how much five acres could yield or the price switchgrass could sell for.

Taylor said the switchgrass will be harvested likely after its second year when it is five to six feet tall. It will likely be planted in the spring and has a 20-year life cycle, Taylor said.

Contact Misty Maynard at misty.maynard@lee.net or call 606-564-9091, ext. 272.