RISI Releases Wood Biomass Market Report

RecyclingToday.com
2/12/2010

Report details new draft rules for Biomass Crop Assistance Program

RISI, a Boston-based research company serving the forest products industry, has released its Wood Biomass Market Report, which comments that new "draft" rules announced by the Farm Services Agency (FSA) for the Biomass Crop Assistance Program (BCAP) come closer to providing assurances that wood for higher-value products will not be diverted for use as biomass. The report, which is published monthly by RISI, indicates that since the program's inception last year, there has been concern among traditional forest products players that the BCAP would drive up prices for composite panel furnish, raw material, pulpwood and even some low-grade saw logs.

The report also states that payments made through the BCAP program are just now flowing to the market in earnest from a $517 million allocation that is valid through March 31, 2010. While these payments do not appear to have had adverse effects to date on pulp and panel producers, this is due almost solely to market conditions and should not be a signal as to the true effect the BCAP program could have if new rules are not enacted.

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