Growin’ in the Wind – Wind Energy Can Help Farmers, Ranchers Through Natural-Gas Crisis

The words "energy crisis" may conjure images from the 1970s of gasoline rationing and long lines of cars at the pumps. For Montana farmers and ranchers, the current "energy crisis" may be less obvious, but it is adding new burdens to an already long list of problems confronting rural communities.

(Thanks to Gayle Shirley, Public Information Officer, MT Secretary of State’s Office, 406-444-4195 for passing this along.- Russ)

As prices for natural gas have increased, farmers and ranchers have been hit with a double-whammy: They’re forced to pay higher utility bills and higher production costs.

"That’s one reason I’ve been such a vocal advocate for wind energy," said Montana Secretary of State Bob Brown. "I can’t just sit by and watch our farmers and ranchers struggle with yet another hit to their pocketbooks. Why should they be burdened with rising energy and fertilizer costs when we can diversify our energy portfolio with wind power, lower prices, and create needed jobs in rural Montana."

Until recently, natural gas was believed to be so abundant and cheap that power plants used it to produce electricity. This practice increased demand and significantly raised natural-gas prices. Last winter, home-heating bills more than doubled in some areas of the country. NorthWestern Energy has increased its rates to Montana consumers by 70 percent over the past year.

But Montana farmers and ranchers have more to worry about than high heating costs. Many farmers use engines powered by natural gas to pump water from irrigation wells. Farmers use propane for space heating and grain drying, and propane prices are tied to natural-gas prices. Natural gas also accounts for 80 to 90 percent of the cost of producing anhydrous ammonia for nitrogen fertilizers. Since March, prices of anhydrous ammonia have jumped so high that farmers can expect to pay $10 to $15 more per acre for fertilizer.

Wind energy can counter the double-whammy facing rural America, according to Dan McGuire, program director for the Wealth from the Wind program of the American Corn Growers Foundation (ACGF).

"The impact of higher natural-gas prices in 2003 had a tremendously negative impact on corn farmers," McGuire said. "The key is to move the wind energy agenda at both the state and national levels, including state and federal energy incentives, just as fast as possible. There is very strong support for wind energy among U.S. corn farmers."

In parts of the country where wind farms generate electricity, they help to conserve natural-gas supplies. And unlike natural-gas prices, which are subject to market fluctuations, wind energy costs are predictable over time. Once a plant is built, the cost of producing electricity is stable, and the fuel source is free.

"Smart investors know they should diversify their investment portfolios and balance potentially high-risk stocks with more-conservative bonds and mutual funds," Brown said. "When a utility includes wind in its energy portfolio, the fixed cost of wind can help balance fluctuations in natural-gas prices."

Montana, which has excellent but untapped wind resources, could join the ranks of other states that have realized the economic benefits of wind energy projects in their communities. The benefits are significant.

Wind energy projects create thousands of jobs and millions of dollars in royalty income for farming and ranching states. Wind projects also contribute to state business, sales, property, and income taxes. Thanks to wind energy, Pecos County, Texas, added $4.6 million to its property-tax revenue in 2002 alone. The additional money benefits local services such as schools, health-care facilities, and roads.

Farmers and rural landowners also benefit directly. In southern Minnesota and northern Iowa, landowners who lease their land to wind developers get annual payments of from $2,000 to $4,000 per turbine. Wind projects also benefit rural economies by providing local jobs–from temporary construction jobs during the initial phases of a project to permanent wind smith jobs.

Demand for natural gas is expected to rise by as much as 50 percent over the next 25 years, according to U.S. Secretary of Energy Spencer Abraham, and prices are expected to remain high. Electricity from the wind can keep the lights on-and benefit rural communities at the same time.

"Higher production costs combined with low commodity prices paid to farmers spells economic trouble for rural America," McGuire said. "That’s why the ACGF and the American Corn Growers Association are promoting wind energy. It’s why we developed the Wealth from the Wind program and work with the Wind Powering America program of the National Renewable Energy Laboratory and the U.S. Department of Energy. We support wind farming as both an alternative income stream for farmers and landowners and an economic development opportunity for rural communities."

In the 1970s, wind energy technology was not a viable, competitive alternative to conventional fuels, and it certainly was not the answer to the energy crisis. Today, wind power generation is being offered at lower prices than either coal or natural gas plants in competitive bids to utilities.

In 2003, rural America must make a choice: either continue to rely heavily on natural gas or support a more balanced approach. Wind energy projects can reduce demand for natural gas, reduce the cost of natural gas and farmers’ production costs, and provide economic benefits for rural communities.

The Montana Wind Working Group prepared this article with information provided by the U.S. Department of Energy’s Wind Powering America Program. For more information, visit http://www.windpoweringamerica.gov.

SIDEBAR

Learn More About It

* American Corn Growers’ Foundation
Learn more about the foundation’s Wealth from the Wind program at http://www.acga.org. Write to the foundation at P.O. Box 18157, Washington, DC 20036; or call (202) 835-0330.

* Windustry

This organization partners with the Institute for Agriculture and Trade Policy to promote wind education and outreach. The organization’s Web site at http://www.windustry.org features a section called Wind Farmers Network of America. If you don’t have Internet access, write to Windustry, 2105 First Avenue South, Minneapolis, MN 55404; or call (800) 946-3640.

* American Wind Energy Association
AWEA offers information on policies that promote wind energy and provide benefits to rural communities. Visit http://www.awea.org; write to The American Wind Energy Association at 122 C Street NW, Suite 380, Washington, DC 20001; or call (202) 383-2500.

* Wind Energy Resource Atlas
To find out whether you have a strong wind resource in your area, visit http://rredc.nrel.gov/wind/pubs/atlas/.