FACTBOX-Highlights of $289 billion U.S. farm bill

Thu May 15, 2008 2:55pm

May 15 (Reuters) - The five-year, $289 billion U.S. farm bill would expand public nutrition, land stewardship and biofuels programs by a combined $15.6 billion over 10 years.

Here are highlights of the bill.

BIOFUELS
* Cuts the tax credit for corn-based ethanol by 6 cents to 45 cents a gallon beginning in 2009; creates $1.01 a gallon credit for cellulosic ethanol through 2012; and extends the 54-cent import tariff on ethanol through 2010.

* Provides $320 million in loan guarantees for construction of commercial-size plants producing advanced biofuels, such as ethanol, from cellulose.

* Provides $300 million in mandatory funding for payments to support production of advanced biofuels including cellulosic ethanol and biodiesel.

* Provides $250 million in grants and loan guarantees for renewable energy and energy efficiency systems for agriculture and rural small businesses.

* Creates program to pay farmers who experiment with biomass crops near biorefineries; $70 million in mandatory funding for 2009-12.

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