Studying ethanol industry's impact

An analysis of the effects of the state’s ethanol industry is called for under a bill that, over the years, has become known as the “Ag Special.” It lays out legislative priorities and funding for agriculture and bioenergy research, and extension activities at the University of Minnesota.

This year’s bill, HF1446, sponsored by Rep. Andy Welti (DFL-Plainview), would appropriate $105 million during the 2010-2011 biennium for an analysis of the state’s ethanol industry, such as:

• water use trends as compared to other industries;

• the carbon balance of ethanol production;

• the effect of ethanol blending requirements on transportation fuel prices; and

• the economic impact of ethanol production on employment, economic output, and state and local tax revenues.

“We are not prescribing what their outcome should be,” Welti told the House Agriculture, Rural Economies and Veterans Affairs Finance Division March 18. He said the university’s analysis would address concerns raised about the environmental byproducts of ethanol production. The bill was approved by the division, and now moves to the House Higher Education and Workforce Development Finance and Policy Division. It has no Senate companion.

Also, under the bill is a requirement for the university to convene agricultural advisory groups to develop effective ways of transferring best-practices information to producers. Further, it asks for research efforts regarding:

• vegetable crops;

• soil, ground and surface water conservation practices and contaminant reduction;

• breeding and development of turf seed and other biomass resources;

• discovering and developing plant varieties that use nutrients more efficiently;

• consumer food safety education and outreach; and

• utilizing plant and livestock cells to treat and cure human diseases.

Rep. Kent Eken (DFL-Twin Valley) successfully amended the bill to include programs to meet the research and outreach needs of sustainable and organic livestock and crop farmers.