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WOOD RIVER With an ethanol plant nearing completion just blocks away, former U.S. Secretary of Agriculture Mike Johanns spoke to local corn growers Wednesday night about expanding the market for ethanol.
Johanns was invited to Wood River as a featured speaker during the Buffalo and Hall County Corn Growers annual meeting.
With many ethanol plants under construction and expansion in the U.S., including the one in Wood River, the market for the E-10 unleaded ethanol blend in the U.S. will be fully occupied or reach about 14 billion gallons per year within the next 18 months.
"Then, you have to ask the question, 'Where do we go from here?'" Johanns said.
With the help of strong federal policy, the U.S. will have to look beyond the current E-10 blend available at gas stations and push for the use of blends with ethanol levels as high as 20 percent to 30 percent. Development of those blends is more viable than a timely increase in the use of E-85 gasoline blends.
"We need a commitment in the U.S. Farm Bill that says we will invest in the future of ethanol," he said.
That investment is not only important to farmers, but will also help reduce U.S. dependence on foreign oil.
"Ladies and gentleman, we simply have to make a commitment as a nation that we are going to lessen our dependence on foreign oil, and we're going to look to other alternatives. And renewable energy has to be a part of that," Johanns said.
Johanns resigned from his ag secretary post in September 2007 to run for the senate seat to be vacated by U.S. Sen. Chuck Hagel next year.
During his two years as ag secretary, Johanns worked extensively on improving foreign trade and drafting the 2007 Farm Bill, both of which he spoke about extensively Wednesday.
To begin crafting the farm bill, Johanns went on a listening tour across the country to gain input from agriculture producers.
He learned a number of things: Farmers want to continue to have a safety net as a component of the new farm bill, they liked the general format of the 2002 bill and they voiced strong support for rural development and conservation.
Congress and the president are still working on an agreement on the bill.
But having a strong, effective farm bill isn't the only component ensuring the success of agriculture in the U.S., Johanns said.
Foreign trade is highly beneficial to U.S. farmers, who on average increase production by 2 percent per year. U.S. food consumption, however, typically increases 1 percent or less every year.
"We already produce more than we can consume," Johanns said.
Ninety-five percent of the world's population lives outside the U.S., making it important for the U.S. to create free trade agreements with other areas of the world, such as Central America.
Johanns cautioned against following notions that the U.S. could someday operate independently, without trade.
"One of the things that I learned as I got around the country doing the farm bill forums was that ag policy is not just about a good farm bill," Johanns said. "It's important, don't get me wrong. We need that strong federal policy behind agriculture. But we also need strong trade policy, we need strong energy policy, we need strong tax policy."
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