Advanced Biofuels Payments Go Out to Producers

John Davis

USDA Rural Development LogoBiofuels producers in 38 states recently received payments from the U.S. Department of Agriculture. Acting Under Secretary for Rural Development Doug O’Brien made the announcement, pointing out these payments of nearly $14 million to 162 producers are still going out, even with the current budget cuts:

“These payments represent the Obama administration’s commitment to support an ‘all of the above’ energy strategy,” O’Brien said. “Producing advanced biofuels is a major component of the drive to take control of America’s energy future by developing domestic, renewable energy sources.”

The funding is being provided through USDA’s Bioenergy Program for Advanced Biofuels, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of advanced biofuels produced from renewable biomass, other than corn kernel starch. Examples of eligible feedstocks include but are not limited to: crop residue; animal, food and yard waste material; vegetable oil; and animal fat. Biofuel can be from a variety of non-food sources, including waste products.

Biodiesel Magazine reports most of the current payments are to biodiesel producers.

In the five years the program has been in effect, the USDA says more than 280 producers in 45 states and territories have received $192.5 million, supporting the production of more than 3 billion gallons of advanced biofuels. A full list of payees is available here.

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