On August 31, 2009, U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced the USDA’s Farm Service Agency (FSA) “made the first matching payment under the new Biomass Crop Assistance Program (BCAP).The BCAP was a program created in the 2008 Farm Bill. Show Me Energy was the first “biomass conversion facility” to become qualified under BCAP. The program has participants in the BCAP pay producers for biomass materials they supply. The FSA matches the payments for the materials through the BCAP collection, harvest, storage and transportation (CHST) program funds.
As FSA Administrator Jonathon Coppess stated in the news release issued by the USDA, ‘"Show Me Energy completed an agreement soon after our July 29th announcement and had biomass producers waiting . . . Agriculture Secretary Vilsack had a chance to see first hand (sic) the company's successful operation during a recent visit to Missouri. He was impressed and excited about the opportunities that BCAP presents for agriculture, the environment and the nation."’ Show Me Energy produces fuel pellets using agricultural waste products. The company thinks it could expand and produce ‘“ . . . cellulosic liquid fuels.”’
On May 5, 2009, President Barack Obama issued a “directive” to USDA Secretary Vilsack to “aggressively accelerate the investment in and production of biofuels.” In June Secretary Vilsack announced the introduction of the BCAP. This program encourages biomass conversion facilities to enter into agreements with the FSA whereby producers sell eligible materials to “qualified” conversion facilities. Producers that can apply for FSA payments that match the payments already received from the facility. Eligible producers or material owners can apply for the matching payment at the local FSA county office. Applications must be submitted before materials are sold and delivered.
For more information on this program click here.
To read the USDA news release click here.
Posted: 09/01/09
