Biofuels are a large, growing offspring of the agriculture industry providing a number of opportunities to compensate producers for grain crops and residue. The United States Department of Agriculture launched the pilot Biomass Crop Assistance Program to boost an interest in biomass production.
Producers can sell corn residue to plants that turn the residue into cellulosic ethanol. This ethanol is used to replace oil. The residue is sold for a fee per bone-dry ton. The produce is given a ticket from the facility along with payment. This ticket can then be turned into the producer’s local farm service agency for another payment, ultimately earning double payments.
Currently farmers can earn up to $40 per bone-dry ton from the facility and $40 a ton from the Farm Service Agency. The money is intended to cover harvest, growing, storage and transportation cost.
The Farm Service Agency works with farmers who have contracts with facilities for 75 percent of the cost for perennial costs and those who earn payments up to five years for annual non-woody perennial crops and up to 15 years for woody perennial crops.
The Biomass Crop Assistance Program is part of the 2008 Farm Bill intended to lessen the U.S. dependency on foreign oil.
For more information on biofuels contact Farm Plus today at 866-929-5585.