Dear Colleague,

With farm input costs at historic highs, farmers everywhere are feeling the pinch. We are especially sensitive to the economic pain being felt by livestock farmers at this time.

Animal agriculture accounts for 98 percent of the domestic soybean meal (SBM) market. Because it is such an important market for soybean farmers, the soybean checkoff program has been working on a campaign to help the general consumer understand the contributions the livestock industry makes in Pennsylvania in terms of jobs, tax base and other economic concerns, as well as the contributions to protecting our environment and preserving our quality of life.

Our industry relies on yours for a strong local market. Similarly, your industry relies on ours for a local supply of feed. It was with this mutual dependence in mind that the Pennsylvania Soybean Board, in August, set about to find a way to help our livestock farmers in a way that would not only provide immediate economic relief, but also contribute to the long-term sustainability of the livestock industry in Pennsylvania.

We didn’t have to look too far to realize that the rising cost of another input – energy – represented an opportunity for us all to critically asses our current choices and position ourselves for the future.

Fortunately for Pennsylvania farmers, this year, for the first time, NRCS is offering a Conservation Activity Plan - Agriculture Energy Management Plan, sometimes referred to as an “Ag-EMP” or “farm energy audit”. Farmers can sign up for the Ag-EMP through their local NRCS office and receive a detailed report customized to their farm which identifies ways to conserve energy, improve energy efficiency, and save money. Farmers who follow through on the improvements identified in the Ag-EMP stand to save potentially thousands of dollars in energy savings each year.

To give you an example: During a 2008 audit on a 200-head dairy farm, the audit company uncovered equipment upgrades that would save 49,596 kilowatt hours (kWh) per year. At a retail electric price of 10 cents per kWh, that’s almost $5,000 in savings each year. Under this program, farm energy audits must be conducted by a certified NRCS Technical Service Provider, or TSP. Currently, there is only one TSP registered for this type of work in Pennsylvania, a company called EnSave. Founded in 1991, EnSave has been a pioneer in designing and implementing programs specifically for agriculture to improve energy efficiency and resource conservation. They have a long and successful track record of working with state and federal funding sources and more than 2,000 private farm clients.

The Pennsylvania Soybean Board is proud to be a partner in the effort to strengthen Pennsylvania family farms by reducing costs and making investments into a more affordable and sustainable future.

Sincerely,

John Yocum

Chairman

Pennsylvania Soybean Board

The Pennsylvania Soybean Promotion Board Livestock Initiative

A farm energy audit can show you how to use energy more efficiently today and give you better choices for upgrades and more savings tomorrow. "Reducing energy use on America's farms and ranches will not only help our agricultural producers become more profitable, but also help the United States become more energy independent," says USDA Secretary Tom Vilsack. "Through this initiative, producers will be able to receive individual on-farm energy audit evaluations and assistance with implementation of energy conservation and efficiency measures."

Approximately 1,000 on-farm energy audit evaluations in 29 states will be funded by $2 million through the Environmental Quality Incentives Program (EQIP) in fiscal year 2010. The energy audits will be individually tailored to ensure coverage of each farm's primary energy uses such as milk cooling, irrigation pumping, heating and cooling of livestock production facilities, manure collection and transfer, grain drying, and similar common on-farm activities.

Participating states include: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Idaho, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Nevada, New Hampshire, New Mexico, New York, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, West Virginia, and Wisconsin.

Implementation will occur in stages beginning with the short-term immediate goal of providing the on-farm energy audits to help identify how the operations can become more energy efficient. Longer term goals will involve development of agricultural energy management plans for cost effective implementation of the recommendations provided in their on-farm energy audits. The 2008 Farm Bill provides authority to use EQIP financial assistance funds for payment of practices and conservation activities involving the development of an Agricultural Energy Management Plan (AgEMP) appropriate for the eligible land of a program participant. Eligible producers in the above listed states may apply for the AgEMP through application at their local NRCS office.

About Farm Energy Audits:

This year, for the first time, NRCS is offering a Conservation Activity Plan - Agriculture Energy Management Plan (Ag-EMP) sometimes referred to as a “farm energy audit”. Livestock farmers now can sign up for the Ag-EMP through their local NRCS office. If farmers install the recommended energy efficient equipment identified in the Ag-EMP, these farmers stand to save potentially thousands of dollars in energy savings each year.

We encourage farmers to visit their local NRCS office to sign up for this program and find more information. Click here to find out more online.

How much does it cost to get an Ag-EMP done? The rate depends on the number of animal units on the farm. Producers with 70 animal units (AU) or greater will be reimbursed for the full cost. Producers with less than 70 AU will pay $350. To determine AUs for dairy cattle:

Mature cow over 1,000 lbs = 1.4 AU

Mature cow under 1,000 lbs = 1 AU

Heifer = 0.7 AU

Calf = 0.2 AU

Is this voluntary? Yes, participation in the program is voluntary, and it is up to the farmer to decide if they want to implement the plan’s provisions afterward. If so, EnSave will help locate incentives/grants/tax breaks to finance them.

How can I find out more information? Visit your NRCS office. This USDA website also offers fact sheets and estimating tools to help you evaluate your energy use and how much you could benefit from an energy audit.

Saving Energy Saves You Money

From the USDA, here are two examples of how making a change in your management can make a change to your bottom line:

Prescribed Grazing Systems-- it takes 40 pounds of nitrogen (high natural gas user) at $0.40 per pound to produce a ton of grass hay; 1.35 gallons of diesel fuel at $2.41 per gallon to raise, harvest, store, and feed the hay; and dry matter losses of about 30 percent for field-stored hay, every month that cows can remain on pasture reduces direct energy costs by about $10.70 per cow.

Windbreaks and Shelterbelts--Windbreaks and shelterbelts can reduce wind-induced erosion and save heating and cooling costs associated with farmsteads. When properly placed to shield farm buildings from strong winds, windbreaks can lower heating and cooling costs by up to 20 percent.