In recent years farm incomes have been low while energy prices have skyrocketed. The result has been a squeeze on already tight farm budgets. That's why, as Chairman of the Senate Agriculture Committee, I've made renewable energy a major focus of the new farm bill.

Renewable energy production and use can raise farm incomes, create new jobs, and boost our rural economy. By increasing our use of renewable energy we can also protect the environment and increase our nation's energy independence.

The farm bill's energy initiative would encourage new uses and markets for agricultural products and renewable energy, including biofuels like ethanol and biodiesel, biomass, wind, and solar energy.

The farm bill that was approved by the Agriculture committee would also benefit farmer owned businesses and co-ops by providing assistance for them to produce and sell renewable energy. Under the energy section of the bill, assistance could be used to establish farmer-owned renewable energy co-ops that would market electricity and to develop biorefineries that convert biomass into fuels, chemicals and power.

The Agriculture Committee's farm bill also seeks to increase production of renewable energy sources by creating a grant and loan program to allow farmers and rural businesses to purchase renewable energy systems, like wind turbines, solar water heat pumps, or methane digesters. And by requiring the federal government to purchase renewable biobased products, we can show the world that America's farms can fuel our cars, trucks, and the American economy.

While greater energy production is important, farmers can also reduce costs and save money by achieving greater energy efficiency. According to USDA reports, approximately 1.9 million U.S. farms and ranches paid more the $4.5 billion for energy in 1997, and energy costs have increased significantly since then. The farm bill's energy initiative would help farmers reduce their energy costs and plan for the development of renewable energy sources through an energy audit program. Greater efficiency can help farmers reduce their energy costs between 10 - 30 percent or more.

The farm bill's energy initiative will mean more money in the pockets of farmers and less dependence by our nation on foreign oil. If we take action now, renewable energy can become a major cash crop for rural America. That means increased incomes for America's farmers and ranchers, and economic growth for our rural communities and a more secure energy future for our nation.