USDA Bioenergy Program Offers $150 Million to Qualified Producers, NCGA Notes (8-5-04)
The National Corn Growers Association
(NCGA) applauds the U.S. Department of Agriculture’s (USDA) announcement
Wednesday that it will award up to $150 million in incentives to commercial
bioenergy producers who increase
production in fiscal year 2005.
Agriculture Secretary Ann Veneman said the sign-up period for the program
is under way and will continue until Aug. 31. The program stimulates industrial
consumption of agricultural commodities, including corn, by promoting their
use in bioenergy production, according to USDA.
“We appreciate the administration’s commitment to developing renewable
energy resources,” said Garry Niemeyer, an Illinois farmer and member
of NCGA’s Ethanol Committee. “This program encourages ethanol producers
to ramp up their production levels, and increased production will benefit corn
growers, rural communities and the environment.”
In FY 2003, ethanol producers expanded production by 607 million gallons,
and in the first two quarters of FY 2004, ethanol production increased 280.9
million gallons. Increased bioenergy production helps strengthen income for
soybean, corn and other producers and lessens U.S. dependence on traditional
energy sources, USDA said. In FY 2004, 63 ethanol production companies qualified
for the program.
“Bioenergy is a significant component of President Bush's energy development
policy,” Veneman said. “The Bioenergy Program provides incentives
for agriculture to provide new energy solutions and we expect even greater
production levels this year.”
Incentive payments will be based on bioenergy production increases from eligible
commodities compared to the same time period a year earlier. To be eligible,
ethanol producers must produce and sell ethanol commercially and have authority
from the Bureau of Alcohol, Tobacco, Firearms and Explosives to produce ethanol
for fuel or sell denatured ethanol rendered unfit for beverage use.
For more information or to obtain registration materials, contact the Kansas
City Commodity Office, Contract Reconciliation Division, P.O. Box 419205, STOP
8758, Kansas City, Mo. 64141-6205; telephone, (816) 926-6525; or via the Internet
at www.fsa.usda.gov/daco/bio_daco.htm.