http://news.excite.com:80/news/r/010222/11/economy-farm-veneman

US needs more grain-based fuel production - Veneman

Updated 11:57 AM ET February 22, 2001WASHINGTON (Reuters) - 
Agriculture Secretary Ann Veneman said Thursday the U.S. farm 
industry needs to increase efforts to develop alternative fuels like 
grain-based ethanol and bio-diesel as the United States searches for 
new sources of energy.

"The nation needs new sources of clean, dependable energy and 
agriculture needs new markets -- a coincidence of needs upon which we 
should capitalize," Veneman said in her first public address at the 
USDA's annual Agricultural Outlook Forum.

She did not elaborate.

President George W. Bush has repeatedly stated that the country needs 
to increase its domestic energy supplies and become less dependent on 
crude oil imports.

A White House task force led by Vice President Dick Cheney is 
preparing a broad national plan to boost domestic energy supplies, 
including allowing oil and gas companies access to the Arctic 
National Wildlife Refuge in Alaska. Cheney is a former top executive 
of oilfield services giant Halliburton Co. .

U.S. farm groups have long supported additional government subsidies 
and programs to boost production of alternative fuels like ethanol, 
which is made from corn and is mixed with gasoline.

The USDA earlier this month selected 79 bioenergy plants in 19 states 
to participate in a $150 million program encouraging production of 
alternative fuels.

In her wide-ranging speech, Veneman also broadly outlined the Bush 
administration's agricultural objectives for the coming months. She 
said the new administration's priorities include expanding trade, 
strengthening food safety and continuing to provide farmers an 
economic safety net.

Veneman, a California attorney who has been on the job for a month, 
declined to take questions after her speech.


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