Biomass Incentives Intended to Lure Farmers

AgWeb.com
3/18/2010
Gary Kass, Farm Journal Proofreader

Demand for biomass is increasing. The U.S. Renewable Fuels Standard mandates that 100 million gallons of cellulosic fuel be used as transport fuel in 2010 and 16 billion gallons by 2022. But producers are reluctant to enter the market, says Jody Endres of the University of Illinois’ Energy Biosciences Institute. “Perennials require long-term commitment, novel agronomic practices, unique harvesting equipment and offer little carbon price incentive,” she explains. But, she adds, the Biomass Crop Assistance Program (BCAP) can help reduce the risk.

BCAP, authorized in the 2008 farm bill, has two parts. The Collection, Harvest, Storage and Transportation (CHST) program makes matching payments upon delivery of biomass crops to a qualified conversion facility. The material can come from federal, private or Indian lands, with some exclusions, including Title I crops. The Farm Service Agency began issuing payments this past fall, paying farmers $1 per dry ton paid by the facility, up to $45 per ton.

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