Agriculture and Renewable
Energy
Sponsored by
Tennessee Department of Agriculture
The University of Tennessee at Martin
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Alternative Energy Issues
• What is driving the question?
– Environmental issues
• Greenhouse gases, global warming, fossil fuel
depletion..
– National security
• Dependence on foreign nations for vital industry
component.
– Global instability
• Middle East
– $$$$$$$$$
• American pocket book typically translates into policy
change.
2
Alternative Energy Issues
• The United States imports more than 60%
of its petroleum
– two-thirds of which is used to fuel vehicles in
the form of gasoline and diesel.
• The demand for petroleum imports is
increasing.
– Much of the worldwide petroleum reserves
located in politically volatile countries
– United States is vulnerable to supply
disruptions.
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The Role of Agriculture
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The Call to Energy Security
“To
build a future of energy security, we must trust in the creative
genius of American researchers and entrepreneurs and empower
them to pioneer a new generation of clean energy technology. Our
security, our prosperity, and our environment all require reducing our
dependence on oil.”
President George W. Bush
Energy Independence and Security Act of 2007
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U.S. Planted Corn Acreage
95000
Acres (1,000)
90000
85000
80000
75000
70000
2002
2003
2004
2005
2006
2007
Year
National Agricultural Statistics Service, 2008
6
History of U.S. Ethanol
Production
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New RFS signed Dec. 19, 2007
Year
Conventional
Biofuel
Advanced
Biofuel
Cellulosic
Biofuel
Biomass
Diesel
Undiff Adv
Biofuel
Total RFS
(BGY)
2008
9
2009
10.5
0.6
2010
12
0.95
2011
12.6
2012
9
Ethanol
0.5
0.1
11.1
0.1
0.65
0.2
12.95
1.35
0.25
0.8
0.3
13.95
13.2
2
0.5
1
0.5
15.2
2013
13.8
2.75
1
1.75
16.55
2014
14.4
3.75
1.75
2
18.15
2015
15
5.5
3
2.5
20.5
2016
15
7.25
4.25
3
22.25
2017
15
9
5.5
3.5
24
2018
15
11
7
4
26
2019
15
13
8.5
4.5
28
2020
15
15
10.5
4.5
30
2021
15
18
13.5
4.5
33
2022
15
21
16
5
368
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Current & Under Construction
Capacity
• In 2007, there were 142 existing
ethanol plants with a capacity to
produce 8.9 Billion Gallons/Year (BGY)
• Another 67 plants are now under
construction with a planned capacity of
an additional 5.1 BGY
• Total existing and under-construction
capacity of 13.0 BGY
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U.S. Soybean Acreage
78000
76000
74000
Acres (1000)
72000
70000
68000
66000
64000
62000
60000
58000
56000
2004
2005
2006
2007
2008
Year
National Agricultural Statistics Service, 2008
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Source: National Biodiesel Board, 2008
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How Can Tennessee Agriculture
Help?
Tennessee Corn Acreage
1000
• 2007 Tennessee acreage
800
Acres (1,000)
700
690
710
680
650
600
550
500
400
300
200
100
0
2002
2003
2004
2005
2006
2007
Year
Tennessee Soybean Acreage
1250
1210
1200
1160
ACres (1,000)
•
– Corn 870,000 acres
– Soybeans 1.04 million acres
Future Projections
– Ethanol 31.5 billion gallons
or 20% of projected U.S.
fuel use by 2015?
– Would require 95.6 million
acres of corn.
– Include expanded acreage
in Tennessee
– Result in $4.00 + corn
Happy Farmers!
870
900
1160
1150
1150
1130
1100
1040
1050
1000
950
2002
2003
2004
2005
Year
National Agricultural Statistics Service, 2008
2006
2007
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A Possible Future of Agriculture
• Corn as a feed for livestock will probably
decline.
• Beef and dairy will consume increased
Dried Distillers Grains.
• Possibly see shrinking poultry and pork
markets due to expected higher feed
costs.
• The end result, consumers will pay for
energy through fuel and food.
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Special Thanks
• Tennessee Department of Agriculture
• University of Tennessee at Martin
• Dr. Bill Herndon, Mississippi State University
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