NCGA Touts Benefits of Designation of Biobased Products by USDA (3-9-06)

The National Corn Growers Association (NCGA) is pleased to see action taken on the federal procurement of biobased products, a move NCGA President Gerald Tumbleson stated will have many benefits on economy, trade and agriculture.

“The Federal Biobased Product Preferred Procurement Program is an extremely effective tool for expanding rural economies, increasing domestic demand for agriculture products and reducing our dependence on foreign oil,” said Tumbleson. “We are very pleased to see the U.S. Department of Agriculture taking significant steps implementing this program.”

USDA Secretary Mike Johanns said this designation will open up new economic opportunities. "The designation of these six biobased items presents new economic opportunities for U.S. farmers and ranchers," he said "This is an historic step toward increasing the use of biobased products by the federal government, which will lead to greater acceptance of biobased products, lower prices and more variety of biobased products in the market. I encourage all federal agencies to quickly adopt preferences for biobased products in their purchases."

The 2002 farm bill authorized USDA to write guidelines authorizing federal agencies to purchase products made from biobased raw materials. Federal agencies must give preference to biobased products in government purchases within one year.

The final rule designates six items, which are generic groupings of biobased products. The items are: mobile equipment hydraulic fluids; biobased roof coatings; water tank coatings; diesel fuel additives; penetrating lubricants; and bedding, bed linens and towels. Two of these items, water tank coatings and bedding, bed linens, and towels, have fewer than two suppliers of the biobased products that fall within these items. Consequently, federal agencies will not have to give these items preference in procurement until there are two or more suppliers. USDA will issue a Federal Register notice when at least two suppliers are making these items available.

According to USDA, this final rule is the first of a series of rules that will be issued designating biobased items. USDA currently has identified about 150 items it is collecting test data needed for the additional designations of items that will extend preferred procurement status to include all qualifying biobased products.

Tumbleson noted corn has played a major role in developing new products made from renewable resources to move the United States from a petroleum-based economy to a carbohydrate-based economy.

Tumbleson said, “There must be a level playing field for renewable products, which will be established by strengthening the Biobased Procurement Rule and designating biobased items. As a result, biorenewables will be allowed to gain a foothold in our markets and significantly replace petrochemicals.”

To enable federal agencies to have easy access to biobased product information, manufacturers of qualifying biobased products that fall within the designated items are invited to post product and contact information on the Web site for the Federal Biobased Products Preferred Procurement Program at http://www.biobased.oce.usda.gov.

Information on the guidelines and the model program are available at http://www.usda.gov/biobased.