Small dairies article fails to
mention impact of renewable energy costs and SB13-252
We read with interest the article titled “Weld County’s small
dairies struggle to survive[i]”
wondering if the Tribune would mention the cost of SB13-252 and renewable energy
mandates.
The article mentions these as factors causing narrow profit
margins - “But that increased competition for water, land, feed and workers has
made it more expensive for all dairies to operate, and the narrow profit
margins are especially tough on small producers.”
The next paragraph states -“In the dairy business, you have
so many inputs ... labor, a lot of water, a lot of feed, a lot of electricity,
which is all getting more expensive ... while you have so little control over
the price you get for the milk you produce,’ said Ellzey, whose 200-milking cow
dairy had been operating near Galeton for decades. “Those dynamics have pushed
a lot of smaller producers out of business. And it’s not getting any better.”
In spite of the fact that Ms. Ellzey mentioned “a lot of
electricity” as part of their dairy’s input costs the author failed to mention
energy costs as part of the factors that are causing these small dairies to be
forced to close.
Farmers and ranchers throughout Colorado produce commodities
that compete across the region and, therefore, cannot pass along increased
costs. The net effect is lower profit
margins which can lead to these small dairies to go out of business. Although energy costs are just one reason
among many that costs have risen, it is a key cost that has been negatively
impacted by state legislation. In 2003,
the citizens of Colorado passed a constitutional amendment to mandate the use
of higher cost renewable sources for Investor Owned Utilities (10% of input
sources). However, if you look at that
vote in rural parts of the state, it would have failed.
In 2007, the standards were imposed on REAs and increased
for Investor Owned Utilities.
Unfortunately, even rural Republican legislators such as Cory Gardner,
Jerry Sonnenberg, and Greg Brophy betrayed rural farmers and ranchers by voting
for HB07-1281 proving that rural folks can’t even count on their Republican
legislators to protect their liberties and way of life. The renewable energy requirements were
increased again in 2010, and finally in 2013 in the infamous SB13-252 bill.
We are slowly eliminating the ability of small family
ranchers and farmers to make a living because of seemingly well-intentioned
legislation. However, it is really the
role of government to put smaller farmers and ranchers out of business only to
subsidize the renewable energy industry and the profits of large utilities such
as Xcel Energy? Renewable mandates such
as what has been adopted by voters and legislators for the past ten years is
having the impact of forcing smaller farmers and ranchers out of business.
If we want to save locally owned and small business farmers
and ranchers, let’s have the discussion about what is driving them out of
business and acknowledge ALL of the factors, including the subsidies being
provided to large utilities and the renewable energy industry on the back of
families that frankly just want to be left alone without the heavy-handed (and
sometimes bipartisan) restrictions coming from the state capital. The question that remains to be answered is
how many more small farmers and ranchers will be put out of business as
electricity costs sky rocket from SB13-252 and the 30% renewable energy mandate
on Investor Owned Utilities that have yet to hit their pocketbooks…
