Generated Summary
This report, “Gaslit by Biogas: Big Ag’s Reverse Robin Hood Effect,” examines the expansion of “manure biogas” or factory farmed gas (FFG) and its role in promoting a reverse Robin Hood effect within the agricultural industry. The study utilizes data obtained through the Freedom of Information Act, along with the analysis of federal and state policies, proposed legislation, and private investment deals to investigate how FFG functions primarily as a greenwashing tool that supports the growth of large factory farms. The report focuses on the financial incentives, subsidies, and deceptive practices employed by the industry, which, despite claims of environmental benefits, contribute to the expansion of industrial animal agriculture at the expense of climate goals, public health, and surrounding communities. The methodology includes a review of the Inflation Reduction Act (IRA) and the Rural Energy for America Program (REAP), as well as case studies and an examination of the role of regulatory capture in perpetuating these practices.
Key Findings & Statistics
- In 2023, Federal subsidies for FFG exceeded $150 million.
- One federal grant program saw a 2600 percent year-over-year increase in grants to biogas.
- The report estimates that the IRA could channel hundreds of millions of dollars in subsidies to factory farm companies over the next several years.
- The USDA’s Rural Energy for America Program (REAP) provided over $150 million in subsidies to biogas operations in 2023.
- In 2023, private investments into FFG reached nearly $750 million, growing nearly three times faster than biogas produced from landfills.
- Report shows that on average, herd sizes at CAFOs with a digester grew by 58%.
- In Iowa, 15 new digester facilities were permitted since 2021, resulting in a 23 percent increase in total herd size in 7 dairy farms.
- Herd sizes at dairies with digesters grew an average of 3.7 percent per year, 2.4 times the growth rate of typical dairies.
- The Inflation Reduction Act (IRA) provided nearly $2 billion in additional funding to the existing Rural Energy for America Program (REAP).
- REAP grants to biogas-related projects were roughly 40 percent of the highest-value REAP grants from 2012 to 2023.
- In 2023, Aemetis, Inc. announced the receipt of $53 million of cash from the sale of $63 million of Inflation Reduction Act (IRA) investment tax credits.
- Aemetis also benefited from a $25 million loan guarantee from the federal government in 2023.
- For biogas operations connected to pig CAFOs, the size of the population supplying the manure ranged from a massive 14,150 animals to a mind-boggling 79,500 animals per digester operation.
- In 2022, the average American dairy herd had 337 cows.
Other Important Findings
- FFG functions exclusively as a greenwashing vehicle and does not actually help the environment, and there are no good FFG operations.
- The expansion of FFG is occurring at a time when there is an increasing public consensus that favors moratoriums on CAFOs and the replacement of factory farms with regenerative operations.
- FFG subsidies flow almost exclusively to factory farm companies, and disproportionately to the biggest, most destructive farms.
- The industry uses deceptive math to justify FFG, which involves a blatant overvaluation of environmental credits.
- The US agricultural system, particularly the dairy industry, has long been critiqued for its elimination of independent farmers in favor of corporate consolidation.
- Digesters only make sense on the largest and most polluting factory farms.
Limitations Noted in the Document
- The report acknowledges that the long-term effects of FFG subsidies are still uncertain and the analysis is based on available data.
- The study’s conclusions are based on the analysis of federal and state policies and may not fully capture the complexities of all FFG operations.
- The report relies on data obtained through the Freedom of Information Act, which may have limitations in terms of completeness and accuracy.
- The study focuses on the financial and environmental aspects of FFG and may not fully address the social and ethical considerations.
- The reliance on data from specific regions, like Wisconsin and Iowa, may not be fully representative of the entire agricultural landscape.
Conclusion
The report’s conclusion is that greenwashing factory farming with perverse incentives will not solve the climate impacts of factory farming, nor will propping up animal factories with public money. The authors advocate for a shift towards reducing reliance on animal-based foods and promoting models of raising animals that leverage traditional husbandry with modern science and technology. The report emphasizes the need to pass legislation such as the Industrial Animal Conversion Act and the Farm System Reform Act, and calls for an end to the reverse Robin Hood effect. Key takeaways include the importance of addressing the growth of factory farms, the deceptive nature of FFG, and the need for a more sustainable and humane food system. The report also highlights that the expansion of industrial animal agriculture, incentivized by FFG, contradicts climate goals and harms public health. The report calls for the end of subsidies that perpetuate the cycle of environmental damage and instead calls for a better path forward by supporting a transition to regenerative practices.