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Sen. Udall Applauds Gypsum Biomass Plant

GYPSUM — U.S. Sen. Mark Udall said the Gypsum biomass power plant is a “win-win-win” project when he and state Sen. Gail Schwartz toured the plant’s construction site on Friday afternoon. The Gypsum biomass plant is the first of its kind in Colorado and is on schedule to go online this December. The “woody” biomass plant will produce 11.5 megawatts of electricity per year by burning dead timber collected mostly from the White River National Forest. That main fuel source will be supplemented by other sources, such as wood construction waste that normally goes to the landfill. Of the 11.5 megawatts, 10 megawatts will be sold annually to Holy Cross Energy through a 20-year agreement and 1.5 megawatts will power the plant itself. “When this goes online it will put us over the top of our goal to have 20 percent of our power coming from renewable energy by 2015,” said Holy Cross CEO Del Worley. “This will put us at around 22 or 23.5 percent renewable energy.” Udall, who serves on the Energy and Natural Resources Committee, touted the public-private project as a fine example of how to bolster the economy and help the environment while generating domestic power. “It’s a carbon-neutral, renewable energy source, it mitigates forest wildfire, it creates about 100 jobs in total and it’s going to be profitable,” Udall said. “There’s nothing wrong with profit — profit leads to reinvestment.” Eagle Valley Clean Energy LLC — a subsidiary of Evergreen Clean Energy Corporation — is the company behind the Gypsum plant, which will get the bulk of its fuel from West Range Reclamation LLC. West Range is a forest and land management company in Hotchkiss that was recently awarded a long-term stewardship contract with the U.S. Forest Service. West Range will receive $8.66 million through the 10-year contract. “The stewardship contract is at the heart of this,” Udall said. “It’s a beautifully fulfilling relationship.” Environmental health Schwartz said Colorado is 37th in the nation for utilizing biomass power but it is the No. 1 producer of biomass fuels. “We have 4 to 6 million acres of standing dead timber in our state,” she said. “We have 175,000 slash piles in Colorado that we will burn anyway. This biomass plant will help clean our forest and mitigate wildfires as well as create jobs and electricity.” Udall said the biomass plant is a market-based solution. “[Eagle Valley Clean Energy] is bringing value to forest slash and waste,” he said. Udall said the plant is carbon-neutral because the wood fuel contains carbon that is already in the environment. “It’s circulating, unlike coal, which is mined,” he said. Udall added that the biomass plant is “state-of-the-art” in terms of its filtration and monitoring systems for pollution. Dean Rostrom, a principal of Eagle Valley Clean Energy, said electrostatic precipitators will filter almost 100 percent of the ash from the burning wood fuel before it makes it into the air. “That smoke stack will look about the same when it’s operational as it does today — you won’t see anything coming out of it,” Udall said. Rostrom confirmed Udall’s statement that the company uses the latest technology to control emissions. “We exceed all air permit requirements,” he said. The Gypsum plant will burn about 250 tons of wood a day. More biomass? Rostrom said he thinks “it makes a lot of sense” to build more biomass plants in Colorado but there are several factors that have to align. “It’s a balancing act between an economy of scale and environmental sensitivity,” he said. “To date, most biomass proposals in Colorado have been 100 megawatt operations but they would consume too much [to be environmentally balanced].” Pam Motley of West Range Reclamation said it is important to find markets that are close to the wood source. “So much of the cost of wood is transporting it,” she said. “Markets need to be within 100 miles or it’s not economical and it’s not as carbon neutral because you’re trucking it so far.” That’s one of the reasons that makes Gypsum’s plant a good fit for the area — its proximity to the White River National Froest. “With modern mega-fires becoming a growing problem that threatens Colorado communities, our precious water supplies and our way of life in the West, we need to use every tool we have to reduce wildfire risks,” Udall said. “The Gypsum biomass power plant shows how we can reduce wildfire risks, create jobs and generate renewable energy sources. This biomass power plant also underscores the urgency for renewing the U.S. Forest Service’s Stewardship Contracting Authority by passing a farm bill. If Congress does not stand with me and act, job-creating public-private partnerships like this will grind to a halt.” Continue reading

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USDA’s Farmland Price Update Report (August 2013)

By K. McDonald on August 5th, 2013 The USDA comes out with an annual farmland price report every August. The newly issued report summarizes farmland price changes since a year ago. Here are this year’s report highlights: ● The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $2,900 per acre for 2013, up 9.4 percent from revised 2012 values. ● Regional changes in the average value of farm real estate ranged from a 23.1 percent increase in the Northern Plains region to no change in the Southeast region. ● The highest farm real estate values were in the Cornbelt region at $6,400 per acre. ● The Mountain region had the lowest farm real estate value at $1,020 per acre. ● The United States cropland value increased by $460 per acre (13.0 percent) to $4,000 per acre. ● In the Northern Plains and Corn Belt regions, the average cropland value increased 25.0 and 16.1 percent, respectively, from the previous year. ● In the Southeast region, cropland values decreased by 2.8 percent. ● The United States pasture value increased to $1,200 per acre, or 4.3 percent above 2012. ● The Southeast region had the largest percentage decrease in pasture value, 1.5 percent below 2012. ● The Northern Plains had the highest increase in pasture value, at 18.4 percent. (Click to enlarge) Note that separate maps like the above are included in the report for cropland and pastureland values. SOURCE: Land Values 2013 Summary (PDF) Continue reading

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Want To Invest In Farmland? Join The Crowd

By ABBIE FENTRESS SWANSON Credit Abbie Fentress Swanson/Harvest Public Media Charles Polanco’s company allows investors to team up and invest in farmland. The new company Fquare is bringing crowd-sourcing to the increasingly lucrative market of investing in farmland. Here’s how it works: On the Fquare website, an investor can purchase a share of a farmer’s land. If enough investors pool their money to buy the whole parcel, they become the new landowners and the farmer becomes the tenant on the land. The farmer gets a three-, five- or seven-year lease to work the land, and the landowners make up to 6 percent annual interest for the length of the lease. When the lease is up, Fquare sells that same farm to a new group of investors. This month, Fquare hopes to fund its first farm. In a busy New York restaurant around the corner from where the company is based, I chatted with the company’s founder, Charles Polanco. He said buying farmland through Fquare was easy, akin to purchasing a share of a mom-and-pop pizza parlor. “That’s how simple it is. You’ll go in, and there will be a land available for $1 million, and 10 individual investors would join together and put [down] the capital to buy it,” he said. Polanco said once a farm is crowd-funded, investors could see returns on their land right away. “Because we work with lease-back arrangements, the farmer will continue to pay the interest. The difference here is that they’ll start paying it to the investors,” he said. “So our investors, as soon as they get into a deal, they’ll start receiving income from that specific farmland deal. When we sell the land, the investors look to also take advantage of the land’s appreciation value.” Most of the land Fquare is interested in selling to investors is located in the Midwest. Polanco said ideally, the parcels will be between 300 and 1,000 acres and will cost investors from $1-$3 million. One of the strategies the company is using to acquire the land is through partnering with farming co-ops. “Many of these co-ops, they have farmers that are over the age of 60 that are looking either to retire or are sick and they can’t work the farm. They look towards platforms like ours because of the fact that we are more focused on lease-back arrangements,” said Polanco. “Basically we go in and offer to buy that land and lease it back to one of the producers of the coop, which is very valuable to them.” Although there’s plenty of speculation about the farmland bubble bursting, Polanco doesn’t see that happening any time soon. “We’re always monitoring farmland prices and we feel that there could be correction, whether now or in the future,” he said. “But many investors are very interested in continuing to acquire this land. We feel that as a long-term investment, farmland values are going to increase.” Continue reading

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