BREAKTHROUGHS
BUsiness Horizon Quarterly
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T
echnological breakthroughs have always been
bushels per acre. Yet technology and research into new
critical to the economic success of rural areas.
crop variants helped production skyrocket over the last
Today, this innovation holds promise for the
generation. From 2007 to 2011, America’s corn growers
entire American economy. Our farmers and ranchers have consistently found through innovation new ways to grow more with less. American researchers and agronomists are responsible for some of the most amazing and groundbreaking discoveries
were producing more than 150 bushels per acre, on average. And in 2012, even in the face of an historic drought, they were able to produce more than 122 bushels of corn per acre. Rural America bears primary responsibility for
of the 20th century. And since the time of President
conservation. Some don’t know it, but 88% of water falls
Lincoln, we as a nation have found it important to support
on private land, ultimately supplying the watersheds that
such innovation at the federal level.
provide drinking water to our cities. Efforts in the years
We are uniquely poised today to continue our traditions of innovation, partnership, and investment. To achieve this, we must understand the evolving importance of rural areas to our nation. As a part of that discussion we must recognize the willingness of Americans to innovate
following the Dust Bowl revolutionized America’s soil conservation efforts—and in the decades since, farmers and researchers have greatly expanded our knowledge for how best to care for the land. Today, rural Americans have undertaken targeted efforts
and adapt to changing circumstances. We must appreciate
to implement specific conservation practices that can yield
our potential as a society to further invest in new markets,
three to five times the benefits of old, general approaches.
and always be looking for new partnerships that translate
Ultimately, they further reduce problematic runoff nutrients
innovation into business success.
making it to rivers and streams by as much as 45%.
!!!!!"!#$%&'()*+,!-'$./!"0,$*(.! !!!!!.1&!.!2*3)%$4!%5!611%+.)*%1 Rural America provides a great deal to all of us—an abundant food supply, clean water, renewable energy, outdoor recreation, and much more. Almost all of our food supply is grown in rural parts of the country, which is why the United States imports less than 20% of the food it consumes annually. Much of our food is then processed and packaged in our cities, creating jobs for those in urban areas. It wasn’t always this way. For example, corn production
Rural America also provides a great deal of America’s energy resources. In 2010, for the first time in more than a decade, America imported less than half of the oil it consumed. This is both because we have expanded our domestic production of conventional fuels—which come almost exclusively from rural areas—and because we have invested in greater efforts to generate renewable energy. Wind power, for example, is expanding dramatically and accounted for about a third of new electric capacity in the United States in 2011. Further, nearly 70% of all wind generating equipment installed at U.S. wind farms in 2011 came from domestic manufacturers, doubling from 35% in 2005.
per acre remained static through the 1940s at about 35
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BREAKTHROUGHS
BUsiness Horizon Quarterly
And while conventional biofuels continue to support nearly half a million jobs while bringing down the price of gas, development of advanced renewable fuels holds tremendous promise. Biodiesel production, for example, reached more than one billion gallons of production in 2011, supporting nearly 40,000 jobs across rural America. We have also found tremendous new uses for agricultural products that hold promise to revolutionize manufacturing. More and more companies today are making products from renewable sources grown locally and regionally. These goods include building materials, industrial cleaners and paints, and plastics that can be used to make everything from car parts to soda bottles. They are helping reduce our dependence on foreign oil, while holding the promise to create more sustainable jobs.
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South Africa, potatoes to Japan, logs to China, organic produce to the European Union, and more. Further, through our research efforts, USDA scientists continue to develop groundbreaking methods for use by producers while partnering with colleges and universities across America to conduct similar research. Second, we have developed stronger local and regional agricultural food systems. USDA’s efforts have increased the number of farmers markets to 7,800 nationwide, a 67% increase over 2008. This also includes creation of regional food hubs—more than 200 of which exist today—to help smaller producers reach larger markets. Third, USDA is helping to create markets for advanced biofuels, from the farm field to the end user. We have invested in the next generation of biofuels, establishing a program to help growers and landowners farm 60,000 acres of plants that will ultimately be converted into advanced renewable energy. To ensure those feedstocks are put to
In all of these areas, Americans have achieved great
use, USDA has invested in efforts to create or retrofit
things. As we look ahead to the future of rural America, I
nine new advanced refineries nationwide, along with six
believe we will need to create new markets to reap the full
regional research centers across America to develop energy
economic benefit of this innovation. Creating these new
technology that’s appropriate to every region. And we have
markets is a priority at the U.S. Department of Agriculture
worked with agencies across the government to develop a
(USDA), and we are doing so today in four key areas:
customer base for the resulting products. For example, the
production agriculture, local and regional food systems,
U.S. Navy has taken steps to create a “Great Green Fleet”
natural resource development, and the bio-based economy.
of ships and aircraft that run on the next generation of
First, American farmers continue to grow more food and increase their capacity to feed the world—and USDA
advanced biofuels. We are also helping create markets for bio-based
is creating new opportunities to sell U.S. products. By
products. USDA has created the “USDA Biobased
prioritizing exports, USDA has expanded markets abroad
Product” label that now appears on more than 25,000
for U.S. commodities, helping the Obama Administration
products that are manufactured by more than 3,000
secure new trade agreements with Panama, Colombia, and
companies. Meanwhile, the Obama Administration has
South Korea. USDA has removed numerous other barriers
prioritized such products for purchase by the Federal
to U.S. trade. In the past year alone, we have removed
government, giving preferred status to more than 9,000
restrictions to help farmers provide more U.S. apples to
bio-based products across more than 75 product categories.
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Fourth, we are focused on creating markets in the area of conservation and natural resources. USDA has supported efforts to develop environmental markets for water quality, carbon sequestration, and other natural services. These markets hold potential for farmers, ranchers, and forest landowners to receive new revenue streams, while delivering cost effective results for businesses to address environmental requirements. USDA scientists are also conducting research on the use of wood, helping companies meet green building design standards and create cost-effective products. U.S. Forest Service research into wood-based nanotechnology is leading the way to the development of plant-based construction
advanced renewable energy to wood nanotechnology as well as innovative new local and regional food marketing. Innovative research and development are going on across the country today, from our smallest towns to our biggest cities. Our investments at USDA are aimed at building partnerships and furthering innovation. We have tremendous partners across the nation, from the farm field to the boardroom. Together, I know that we can grow prosperity in rural America, and grow the bottom line for American business. Q Tom Vilsack serves as the Nation’s 30th Secretary of Agriculture. As leader of the U.S. Department of Agriculture (USDA), Vilsack is working hard to
materials, body armor, and more. Additionally, the Forest
strengthen the American agricultural economy,
Service has carried out more than 150 projects since 2009
build vibrant rural communities, and secure a
to convert woody biomass and other forest products to energy. This is just one more avenue through which we can help create new markets for forest products, along with new opportunity for business.
stronger future for the American middle class. Prior to his appointment, Vilsack served two terms as the Governor of Iowa, in the Iowa State Senate, and as the mayor of Mt. Pleasant, Iowa. A native of Pittsburgh, Pennsylvania, Vilsack was born into an orphanage and adopted in 1951. After graduating Hamilton College and Albany Law School, he moved to Mt. Pleasant - his wife Christie’s
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hometown - where he practiced law.
Ultimately, I see an opportunity for our nation to reap tremendous economic benefits from the innovation taking place across America’s small towns and rural areas. The same innovation that helped farmers increase crop production, produce renewable energy, improve conservation practices, and revolutionize manufacturing can continue in the coming decades.
At the Business Horizon Series in December 2012, Secretary Vilsack highlighted USDA’s work to create new markets, foster new understanding, and further opportunity in rural America. You can learn more about these efforts at www.usda.gov/opportunity. For more on this topic, go to forum.uschamber.com/agriculture.
The key lies in developing even more partnerships that draw on our unique strengths as Americans. Government, academic, and private sector innovators can partner to develop groundbreaking methods that our farmers will be eager to incorporate. Likewise, the growing prosperity of agriculture holds numerous benefits for business—from
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