Signup for the U.S. Department of Agriculture's Bioenergy Program for Fiscal Year 2002 was held from September 4 through September 28, 2001.  The program stimulates industrial consumption of agricultural commodities by promoting their use in bioenergy production, a significant element of President Bush's energy development policy. "President Bush's energy policy calls for increased production of renewable energy sources," said Agriculture Secretary Ann M. Veneman.  "This program provides incentives for agriculture to be part of this nation's energy solutions and we expect even greater production levels this year."

Last year ethanol producers committed to expanding production by 246 million gallons, and biodiesel producers by 36 million gallons.  Under the program, U.S. Department of Agriculture will make up to $150 million in payments to commercial ethanol and biodiesel producers in the U.S. that increase their bioenergy production from eligible commodities between October 1, 2001, and September˙30,˙2002.  Payments will be based on bioenergy production increases from eligible commodities compared to the same time period a year earlier. 

USDA Chief Economist Keith Collins

"The program boosts ethanol and biodiesel production at a time when the transportation fuel market is tight, helping keep fuel prices competitive," said USDA Chief Economist Keith Collins.  "It also expands demand for corn and other grains used in ethanol production and creates new markets for oilseed crops.  The program means increased net returns for ethanol and biodiesel processors, which will encourage expanded production capacity for these fuels."

Eligible commodities for fiscal year 2002 are barley, corn, canola, crambe, flaxseed, grain sorghum, mustard seed, oats, rapeseed, rice, soybeans, safflower, sesame seed, sunflower seed, wheat, and cellulosic crops (such as switchgrass and short rotation trees) grown on farms in the United States and its territories for the purpose of and used in producing fuel grade ethanol and/or biodiesel.

For more information, contact the Kansas City Commodity Office at 816.926.6525 or via the Internet at http://www.fsa.usda.gov/daco/bio_daco.htm