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Energy -- Alternative Fuel Incentives
Biofuel from grain and other agricultural products reduces America's dependency on foreign oil and is better for the environment. Biodiesel is not dangerous to handle or transport and has been proven to extend the life of engines.

Key Messages:
  • We support the production of biofuel from grain and other agricultural or forest products and urge industry and agricultural cooperatives to investigate and produce this fuel extender.
  • Government incentives should be made available for the production and marketing of biofuel in place of other products currently used. This emerging industry is a catalyst for rural economic development.
  • For Alabama farmers to benefit from this emerging market, alternative energy incentives in Alabama must encourage the production and use of fuels produced from Alabama crops.
  • We actively and strongly support legislation to use the interest from an invested portion of the oil and gas funds, on a continuing basis, for the preservation and improvement of agricultural and renewable natural resources.
Background:
Many energy businesses have already directed their attention toward developing new alternative energy technologies and products, while improving reliability and efficiency in an attempt to lessen our dependence on foreign oil. Given the extreme recent weather patterns, including colder winters, severe droughts and hurricanes that affect energy production, the interest in alternative energy use will continue to grow. This interest will be further fueled by oil and gas prices that are expected to remain volatile.

Correlating Issues:
  • The U.S. Department of Agriculture says a bushel of soybeans can yield about 1.5 gallons of biodiesel. Soybeans contain about 20 percent oil. It takes about 7.7 pounds of soybean oil to produce a gallon of biodiesel.
  • One bushel of corn can produce at least 2.77 gallons of biofuel.
  • Alabama is a leader in the development of cellulosic ethanol. Since this type of fuel can be produced from non-edible products grown in abundance in Alabama, the Federation favors continuing support for research in this area.


Click here to download a PDF version of this Issue Card.


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