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 assess 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. We invite your organization to join us in encouraging Pennsylvania farmers to explore the possibilities.

In addition, we understand that when prices for certain commodities are low, the organizations that serve those commodities often don’t fare well, either. We welcome your organization’s proposals for special programs that can help the Pennsylvania livestock industry through research, education or marketing initiatives.

Sincerely,

John Yocum

Chairman

Pennsylvania Soybean Board

The Pennsylvania Soybean Promotion Board Livestock Initiative

The Pennsylvania Soybean Promotion Board is interested in funding projects which address the Pennsylvania livestock industry's critical needs and which will provide solutions to long-term sustainability and profitability of livestock operations.

Organizations are asked to submit a Letter of Intent to the soybean board prior to March 1, 2010. (An additional round of submissions may be requested after this date.)

The Letter of Intent should include the following information:

• Clearly defined statement of the issue being addressed and need;

• Plan of approach;

• Estimated budget;

• Measurable outcomes;

• Plan for providing proper attribution for the soybean checkoff’s contribution;

• A point of contact and contact information.

The purpose of the Letter of Intent is to serve as a means for the soybean board to evaluate proposed activities before requesting a full proposal. Proposed activities must be within the soybean checkoff’s allowable activities. The soybean checkoff, for example, is expressly prohibited from conducting or funding lobbying activities. In addition, in general, capital expenses are not allowed. Other restrictions on the use of checkoff funding may be imposed by the Pennsylvania Soybean Promotion Board at its discretion. Proper attribution, or credit, of the checkoff’s support of the program, is required.

Letters of Intent should be addressed to Sandra L. Davis, the board’s executive director.

Pennsylvania Soybean Promotion Board

Sandra L. Davis

Executive Director

P.O. Box 319

Salisbury, MD 21803

Send an email

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”. Farmers 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.

As of February 1, 2010, the program is so new that not all of the registration information is available on NRCS's website. We encourage farmers to visit their local NRCS office to sign up for this program and find more information.

How much does it cost to get an Ag-EMP done? The rate depends on the number of animal units on the farm, and has not been established yet for Pennsylvania. However, the participating farmer gets reimbursed for all or part of the cost.

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.