USDA makes payments to biofuels producers who lost markets
Agriculture Secretary Tom Vilsack said on Friday that USDA has provided $700 million to help lower costs and support biofuel producers who faced unexpected market losses due to the COVID-19 pandemic.
“The Biden-Harris administration is committed to rebuilding the rural economy after the impacts of the pandemic,” Vilsack said.
“That’s why USDA is targeting resources and investments to improve the strength and resiliency of America’s sustainable fuel markets. The investments we’re announcing today will pave the way to economic recovery for America’s biofuel producers, stimulate a critical market for U.S. farmers and ranchers, and support our nation’s transition to a clean-energy economy.”
The funds are being made available through the Biofuel Producer Program, which was created as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The payments include more than $486 million for 62 producers located in socially vulnerable communities, USDA said.
USDA is making payments to 195 biofuel production facilities to support the maintenance and viability of a significant market for agricultural producers of products such as corn, soybean or biomass that supply biofuel production. These biofuel producers experienced unexpected market losses on a combined 3.7 billion gallons as a result of COVID-19.
The payments will support biofuel producers in California, Colorado, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, North Dakota, Nebraska, New York, Ohio, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia and Wisconsin.
USDA cited these examples in its news release:
▪ In Iowa, Southwest Renewable Energy LLC is receiving a payment of $3 million. It suffered a market loss on 14.3 million gallons of ethanol due to the pandemic.
▪ In Illinois, Adkins Energy is receiving a $774,000 payment. Its biomass-based diesel production suffered a market loss on almost 3.5 million gallons due to the pandemic.
▪ In Texas, White Energy Holding Company is receiving a $21 million payment for production at two facilities. Its ethanol production suffered a market loss on 98 million gallons due to the pandemic.
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