USDA Announces Support for Producers of Advanced Biofuel

Recipients include a Minnesota dairy company that will receive $8,040 to help offset the cost of producing electricity from two anaerobic digesters.

Source: USDA

OMAHA, Neb., Sept. 12, 2013 – A Minnesota dairy is among 188 recipients of USDA’s Advanced Biofuel Payment Program, which is making nearly $15.5 million in payments to support the production of advanced biofuel.

USDA Rural Development Acting Under Secretary Doug O'Brien made the announcement today on USDA Secretary Tom Vilsack's behalf in Omaha, Neb., at the National Advanced Biofuels Conference.

Riverview, LLP, a Minnesota-based company, will receive an $8,040 payment to help offset the cost of producing electricity from two anaerobic digesters. The two digesters use manure from two of the company's dairy operations to produce electricity, which is sold to Great River Energy. During the last quarter of 2012, the anaerobic digesters produced almost 4.9 million kilowatt hours of electricity, enough to power more than 400 homes a year.

Click here for the complete list of producers, including several dairies, receiving payments. The list includes several dairy and livestock operations with anaerobic digeseters.

USDA says it remains focused on carrying out its mission, despite a time of significant budget uncertainty. Today’s announcement is one part of the Department's efforts to strengthen the rural economy.

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

The funding is being provided through USDA's Advanced Biofuel Payment Program, 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; vegetable oil; and animal fat.

O'Brien noted that today's announcement serves as another reminder of the importance of USDA programs for rural America and a reminder of the need for Congress to get a comprehensive Food, Farm and Jobs Bill done as soon as possible.

"Job seekers in rural America need new and expanded investments in renewable energy, biofuel and bio-based product manufacturing – all of which can help create jobs in rural areas," said O'Brien.

Through the Advanced Biofuel Payment Program and other USDA programs, the department is working to support the research, investment and infrastructure necessary to build a strong biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel. More than 290 producers in 47 states and territories have received $211 million in payments since the program's inception. It has supported the production of more than 3 billion gallons of advanced biofuel and the equivalent of more than 36 billion kilowatt hours of electric energy.

For example, American Biodiesel, Inc. (dba Community Fuels) in Encinitas, Calif., is receiving a $47,186 payment for its quarterly production of biodiesel from a variety of sources, including canola and soybean oil. The biodiesel reduces emissions and is primarily used as an alternative to diesel fuel. In the past, Community Fuels has used funds from the Advanced Biofuel Payment Program to install equipment and increase production at its bio-refinery at the Port of Stockton, Calif.

USDA, through its Rural Development mission area, has a portfolio of programs designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. USDA has made a concerted effort to deliver results for the American people, even as the department implements sequestration - the across-the-board budget reductions mandated under terms of the Budget Control Act.

USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.