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- USDA announced the creation of four additional Biomass Crop Assistance Program (BCAP) project areas in six states to expand the availability of non-food crops to be used in the manufacturing of liquid biofuels.
USDA has allocated approximately $45 million for contracts that range between less than five years up to 15 years in the four project areas for producers who volunteer to enroll in BCAP. Producers who enter into BCAP contracts are eligible for reimbursements of up to 75 percent of the establishment costs of the perennial energy crop, and up to five years of annual maintenance payments for herbaceous crops and up to 15 years for woody crops. According to industry estimates, more than 3,400 jobs in the biorefinery, agriculture and supporting sectors will be created due to these new BCAP project areas, with more than 2 million gallons annually of biofuels manufactured when full production levels are achieved.
Earlier this year, USDA announced five BCAP project areas where energy crops will be grown on up to 250,000 acres in 66 counties in Arkansas, Kansas, Missouri, Pennsylvania and Ohio. These crops, such as switchgrass and giant miscanthus, are the first-ever national investments in expanding U.S. biomass resources to meet domestic energy security.
The sign-up period for these four new project areas will begin on Aug. 8, 2011. The deadline to sign up for the project areas is Friday, Sept. 16, 2011. The Farm Service Agency, administering the program on behalf of the Commodity Credit Corporation with conservation planning assistance from the Natural Resources Conservation Service and other partners, will enter into contracts with landowners and operators in these project areas. Producers interested in participating in the project areas should visit their local FSA county office. Information about BCAP may be found at www.fsa.usda.gov/bcap.