The U.S. Department of Agriculture has announced details of a two-year, $300 million incentive program designed to encourage increased production of biofuels such as ethanol and biodiesel.  Under the program, the Commodity Credit Corporation will provide cash incentives to bioenergy producers who increase their purchase of eligible agricultural commodities to expand production of ethanol, biodiesel and other biofuels. 

Under the program, Commodity Credit Corporation will make up to $150 million in incentive cash payments to bioenergy producers in the U.S. that increase their purchases of agricultural commodities over the previous fiscal year's purchases for the purpose of increasing ethanol production.  Eligible commodities include barley, corn, grain sorghum, oats, rice, wheat, soybeans, sunflower seeds, canola, crambe, rapeseed, safflower, sesame seed, flaxseed, mustard seed and cellulosic crops (such as switchgrass and short rotation trees).

To be eligible, ethanol producers must produce and sell ethanol commercially and have authority from the Bureau of Alcohol, Tobacco and Firearms to produce ethanol for fuel or sell denatured ethanol rendered unfit for beverage use.

For more information, call 816-926-6525 or visit the Internet at: www.fsa.usda.gov/daco/bio_daco.htm