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Two world trends stand out to me in particular: First, the world
community continues to be focused and determined at replacing fossil
fuels with renewable energy. Second, the world population is growing
and demanding higher quality and quantities of protein.
The world, not just the United States, now understands for the
most part that fossil fuels are a bad investment long term. There
are a number of reasons ranging from energy security (how does
dependence on rogue nations for our oil make any sense?), CO2
emissions, and of course the simple fact that it will run
out..someday. For these reasons and more, some of the world’s
biggest companies and brightest scientists are working hard to turn
not just grain corn, but every part of a plant including the leaves
and stems or crop residue (collectively known as "cellulosic
feedstocks"), into something that can fill your tank, create
electricity, or make plastics—completely from plant based materials.
Certainly there are issues with this emerging industry that need to
be addressed including the "food vs. fuel" debate, policy issues
including wasteful renewable energy subsidies, and the higher
production costs of renewable energy vs. fossil fuels. Regardless,
it's a matter of ‘when’—not ‘if’—the world replaces fossil fuels
with renewable energy, and when they do it will be up to the
agriculture community to help grow our energy needs. The second
world trend, the growing world population, demands more food—this we
know. But in particular it’s the demand for high quality animal
proteins (milk and meats) in China, the Middle East, and other
emerging markets that are driving our feed export markets higher.
This increased demand for feed combined with the conservation of
natural resources (mainly water) inside these emerging markets is
fueling a general surge in demand for plant-based roughage
throughout the world. For Oregon agriculture it means a more robust
export market for our grass seed straw and other forage products
that can be effectively and efficiently shipped off the west coast.
Whether it be energy that your car consumes in the form of
Cellulosic Ethanol, or energy that we consume in the form of milk or
meat, it all starts with energy that is grown on the farm. Oregon
agriculture, with its prime location for exporting feed, the vast
crops and residues we grow, and the favorable investment environment
for renewable projects should stand to benefit from both of these
world trends. Bill
Pacific Ag Solutions |
