"This historic agreement, the first of its kind, will help us achieve the ambitious goal of drastically reducing greenhouse gas emissions while benefiting dairy farmers," Vilsack said.

"Use of manure to electricity technology is a win for everyone because it provides an untapped source of income for farmers, provides a source of renewable electricity, reduces our dependence on foreign fossil fuels and provides a wealth of additional environmental benefits."

With this memorandum of understanding, the Innovation Center for US Dairy - part of the Dairy Management Inc. - the US Department of Agriculture and US dairy producers will work together to reach a 25% reduction in greenhouse gas emissions by the year 2020.

USDA will do so by undertaking research initiatives, allowing implementation flexibility and enhancing marketing efforts of anaerobic digesters to dairy producers.

Anaerobic digester technology is a proven method of converting waste products, such as manure, into electricity.

The technology utilises generators that are fueled by methane captured from the animal manure.

Currently, only about 2 per cent of US dairies that are candidates for a profitable digester are utilising the technology.

Dairy operations with anaerobic digesters routinely generate enough electricity to power 200 homes.

Through the agreement, USDA and the Innovation Center for U.S. Dairy will increase the number of anaerobic digesters supported by USDA programs. Beyond promoting the digesters, the agreement will encourage research and development of new technologies to help dairies reduce greenhouse gas emissions.