your forest as biobased. can you tell us why this is the case. >> the way the legislation has been incorporated and the regulations that have been drafted, there is language that it requires that it be a new product with a certain date. and if you look at products, for example, that come off of my farm, an example would be hardwood that's made into pallets. there are peal lths that come from overseas that are made of hemp which compete and get the labeling and would be what a federal agency would have to procure over and instead of the product that's made locally on my farm. i think that's an unintended consequence of the legislation. our recommendation is that the playing field be levelled so all biobased products be recognized. that's particularly important at the forest industry at this time because the forest industry is still struggling with one of the worst downturns since the depression. >> similar i have concerns that the current rating system utilized by the leadership and energy in environmental des

the biobased market program is expanding consumer aware neness these products. opening the biorefinery assistance program to renewable chemicals would further accelerate these promising technologies. my written testimony, which you have before you, includes several additional examples of the tremendous impact energy title programs are having in rural economies. biotechnology is unlocking the potential to create these for rural economic prosperity. farm bill energy in combination with the complementary standards are sped speeding technologies to commercial reality. it is vital for our nation's future that we continue investments in america's energy and agricultural futures as the senate agricultural committee acknowledged when it passed mandatory funding thor these programs and the bipartisan bill that passed the committee last month on a vote of 16-5. i urge this committee to do its part as well and to reauthorize farm bill energy programs with meaningful mandatory funding. >> thank you, mr. greenwood. >> mr. stroschein. >> i was raised on a farm and i've seen f

the last program that i would like to address is the biobased markets program. under the current law forest products have received an unfavorable position in the program. we would like to see the language in the 2012 farm bill that would create parity between forest and other biobased products by inserting language that would apply an innovative approach to producing biobased products regardless of the date of entry. i'm working with a company called american progress which is a company that is completing construction of a pilot wood ethanol plant. they take waste water from an existing plant and producing woody ethanol. the company saw a need and realized what it took to solve the need and made the investment. thank you for allowing me to provide testimony and comments as you formulate the 2010 farm bill. i'll be happy to answer any questions you might have. >> thank you. now recognize mr. gorgan for five minutes of testimony, please. >> thank you mr. chairman, members of can committee. i'm the society of american foresters chief executive officer and executive

the second area of testimony is to speak a bit about the need to focus or refocus the usda's biobased markets program to better recognize certain products that are not properly recognized now, we believe. there are a number of stories in my written testimony about landowners who work hard on their property and who benefit from the forest conservation programs. since i'm before you today, i'll share with you some of the things that we have done on our farm. through programs such as whip, equip, crp and csp, we have been able to do things which would not in and of themselves have been financially viable without the assistance of these programs. we have improved wile life habitat, water quality, and reduced the risk of fire through certain techniques. we've created jobs for the local loggers and have improved the health of the forest. we realized that this committee and congress as a whole faces a significant budget issue. and my request to you would be to -- with that recognition if cutting has to occur that forestry and conservation programs not to be cut disproportionately. my second

is that the usda's biobased markets program is misfocused for an interpretation it does not fully support products that come from our farm with respect to labeling and federal purchasing, despite the fact that the legislation refers to forestry materials. we are pleased that chairman thompson and congressman shrader are condition -- to better square what's going on with what should be going on. and in particular, this is -- this is a program that could be changed without incurring any additional costs, it would stimulate and open and level the marketings for biobased products, particularly with respect to traditional forest products and it could be done with little or no cost, which seems like a win-win all around. in conclusion, we appreciate the work of this committee, both past and future and hope that you will continue these forest conservation programs to enable landowners like myself to continue to be good stewards of our land. thank you and i look forward to your questions. >> thank you mr. burke. mr. dye, proceed when you're ready. >> chairman thompson, members of the subcommittee

greenwell, you suggested energy programs such as the biobased market programs are fostering innovation and cited a biorefinery in louisiana. can you give me any other examples of how these programs help drive innovation? especially innovation of new technologies? >> certainly. thank you for the question. the newest part of all of this is really the ability to convert cellulose into -- and sugars that can then be distilled into ethanol. we've known hough to take the starch part of the plants and turn it too anything a since e the -- they evolved it into a product to be structural. the problem is how can we use biotechnology to develop inziems that can break down that material. that's what our companies have succeeded in doing now and that's what we're moving towards commercialization with, the ability to then use -- for farmers to take two jobs, when they sell them the way they ordinarily do. but so to be able to use your corn stocks you don't a little cold, to be able to use all of that on land that might not be that usable for normal agriculturier. this is the advanced biofuels which