Rule for BCAP Proposed
Vilsack says the new program will help reduce risk for biomass producers.
Jason Vance
Published: Feb 4, 2010
USDA has issued a proposed rule for the new Biomass Crop Assistance Program. Authorized by the Farm Bill, the rule is designed to ensure that a sufficiently large base of new, non-food, non-feed biomass crops is established in anticipation of future demand for renewable energy consumption.
The department says BCAP is intended to reduce the financial risk for farmers, ranchers and forest landowners by providing incentive payments to those who invest in the production, harvest, storage and transportation of new first-generation energy crops that displace hydrocarbon-based materials now used for heat, power and vehicle fuel.
"We recognize that as part of an effort to have a more robust renewable fuel and energy industry that it is going to be necessary to provide financial resources every step of the way to develop more fuels," Ag Secretary Tom Vilsack said. "We know that it is necessary to reduce that financial risk if we're asking farmers and ranchers and forest landowners to take a chance on biofuels to produce the feedstock and biomass needed to produce these fuels. We want to be partners with them in this effort, so the BCAP rule, which will result in somewhere between $400 million and $500 million per year being allocated to producers to reduce risk was a very important next step.
BCAP will provide funding for producers of eligible renewable crops within a select geographical area to receive payments up to 75% of the cost of establishing the crop and annual payments for up to 15 years for crop production.
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Tagged: farm, usda, farm bill, Harvest, biofuels
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