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FOR
IMMEDIATE RELEASE
CONTACTS:
America Farm Bureau Federation 202-406-3600
National Corn
Growers Association 202-628-7001
National Council
of Farmer Cooperatives 202-626-8700
Agriculture
Coalition Calls on Congress to Increase U.S. Natural Gas Supply Now
WASHINGTON, May
18, 2005-- The Agriculture Energy Alliance, a national coalition of
60 farm groups and agribusinesses, calls on Congress to enact comprehensive
energy legislation that integrates the use and development of domestic
natural gas and stabilizes natural gas prices.
“Congress
must support new legislation to increase the supply of natural gas,
lower its price, and provide relief to farmers and other producers in
our economy,” says Bob Stallman, president of the American Farm
Bureau Federation. “We must diversify our fuel supply, drill in
new areas, and allow permits for new port terminals to import liquefied
natural gas. Or else we must agree to watch our farm and fertilizer
manufacturing sectors continue to erode.”
“Most Americans
don’t realize just how much natural gas is used in production
of their food, clothing and now their fuel,” says Leon Corzine,
National Corn Growers Association president. “Specifically, corn
farmers are affected by high natural gas prices because it is the major
component of fertilizers, for the drying of the corn and irrigation
of the crops. That is why the comprehensive energy bill that gets our
country on the path to stabilizing our energy prices is so critically
important to farmers.”
Since the 1980s,
natural gas has become “the fuel of choice” to meet environmental
goals of every class of user. U.S. demand for natural gas is up 40 percent
since 1986 and accounts for 25 percent of U.S. energy use. By 2025,
U.S. natural gas demand is projected to grow another 40 percent. Production
has risen less than 1 percent annually since 1998, and the price has
tripled compared to the average of the past decade.
“The United
States has already achieved a 50 percent improvement in energy efficiency.
We can’t just conserve our way out of this crisis,” says
Jean-Mari Peltier, president of the National Council of Farmer Cooperatives.
“We can’t just increase domestic production from existing
fields enough to meet demand.
We can’t wait
decades for new technologies. Our agriculture and manufacturing sectors
need practical policies to increase supply now. Natural gas alone cannot
carry the load. America needs to use all its available energy resources
to meet economic and environmental goals.”
High natural gas
prices and low-cost imports have forced 20 U.S. fertilizer plants to
close in recent years, making U.S. farmers increasingly import dependent.
But increasing import dependence has not lowered fertilizer prices.
Last year, nitrogen fertilizer prices in the United States reached historic
highs – up 80 percent since 1999 – and supply failed to
meet demand.
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The National Corn Growers Association mission is to create and increase
opportunities for corn growers. NCGA represents nearly 33,000 members,
26 affiliated state corn grower organizations and hundreds of thousands
of growers who contribute to state checkoff programs. |