Farm-state lawmakers yesterday took the first step in reauthorizing the nation's sweeping five-year agriculture policy with a look at federal energy programs aimed at farmers and rural landowners.

Members of the Senate Agriculture, Nutrition and Forestry Committee questioned Agriculture Secretary Tom Vilsack on issues ranging from crop insurance to biomass and ethanol at the first in a series of hearings planned on different aspects of the farm bill. Though the senators showed bipartisan support for expanding domestic biofuels production, they acknowledged roadblocks in the way, including a tight fiscal situation.

"Unfortunately, our current budget situation leaves us with little room for error," ranking member Pat Roberts (R-Kan.) said.

The Obama administration's $154.5 billion agriculture budget request released Monday was on the top of everyone's mind. Committee members across the board spent a good deal of time criticizing the administration for recycling a proposal to cut billions from crop insurance, a program that helps farmers withstand unpredictable weather and prices.

Vilsack defended the plan, saying President Obama decided against taking an approach that cuts evenly from all areas -- conservation, nutrition assistance and subsidies -- and instead chose to spare nutrition assistance programs at the expense of crop insurance.

Beyond the budget, the hearing was mostly an information-gathering activity for lawmakers as they begin to craft the next farm bill, which sets crop subsidies, conservation and energy funding, and nutrition assistance. Other witnesses included the chairman of the Show Me Energy Cooperative in Missouri and the CEO of renewable fuels company Virent Inc.

Lawmakers focused especially on the Rural Energy for America Program, which helps rural landowners make energy efficiency improvements, and the Biomass Crop Assistance Program, which provides funding to farmers for planting feedstocks for advanced biofuels.

Congress must decide whether to continue those programs in the reauthorization, as their mandatory funding runs out on Sept. 30 when the current farm bill expires.

Both programs have been scaled back drastically since the 2008 farm bill. Congress, for example, has reduced the Biomass Crop Assistance Program by 96 percent, to $17 million, in fiscal 2012. The Obama administration did not request any funding for it in fiscal 2013.

BCAP had a slow start -- it had to be revamped after suffering from ballooning costs and hasty implementation -- but finally got off the ground last year and began awarding funding for projects. Supporters say it is now critical in expanding the advanced biofuels industry.

"The BCAP program is the baseline for any type of project that doesn't have the feedstocks," Steve Flick, chairman of the Show Me Energy Cooperative, told the Agriculture Committee. "No matter what technology one has, those feedstocks themselves are the drivers of those technologies."

The cooperative operates a biorefinery and last year became the first Biomass Crop Assistance Program project area to be awarded funding by USDA.

Vilsack yesterday called on committee members to support the programs, citing their "enormous potential." At the top of USDA's priorities, he said, is holding firm on the renewable fuels standard, which mandates that the nation produce 36 billion gallons of ethanol a year by 2022 with a large portion coming from advanced biofuels.

"It is absolutely essential for us to move beyond the over-reliance on corn-based ethanol, and I think we're seeing that," Vilsack said. "We're seeing algae plants, we're seeing agricultural waste being used in Florida, we're seeing switchgrass and woody biomass being used in other parts of the country.

"There's a great deal of interest here. We just want to make sure we continue the commitment," he said.

The secretary seemed to have support from committee members on the energy programs.

"It's really important that we move past corn-based ethanol and get to next-generation biofuels," said Sen. John Thune (R-S.D.), who helped introduce the Biomass Crop Assistance Program into the 2008 farm bill.

Sen. Tom Harkin (D-Iowa) pushed for Vilsack to take a message back to President Obama: Get behind initiatives to open up market access to advanced biofuels.

"We've got the enzymes now, these biofuel plants will be built all over -- but we need market access," Harkin said.

The USDA secretary, though, said that his hands were largely tied in regard to diversifying away from corn-based ethanol. There is not much the department can do with the $17 million that Congress has left for the Biomass Crop Assistance Program, he said.

"We'll continue to fund those contracts, but in terms of expansion of the number of contracts -- it's going to be impossible with $17 million," he said.

The budget and the farm bill will be very closely tied, said Sen. Mike Johanns (R-Neb.), the USDA's leader under former President George W. Bush. And programs will have to be streamlined and targeted in order for the bill to get through the Senate, he said.

Getting such a sweeping bill through Congress will be difficult in the election season. Still, agriculture leaders said they hoped to get the bill onto the Senate floor within months.

"It's very critical that we pass a farm bill this spring," said Chairwoman Debbie Stabenow (D-Mich.).