Agricultural Economics Department

 

Date of this Version

1-23-2013

Citation

Cornhusker Economics (January 23, 2013)

Comments

Published by University of Nebraska–Lincoln Extension, Institute of Agriculture & Natural Resources, Department of Agricultural Economics. Copyright © [2013] Board of Regents, University of Nebraska. http://agecon.unl.edu/cornhuskereconomics

Abstract

The Biofuel Crop Assistance Program (BCAP), which was authorized in the 2008 Farm Bill, is a federal program administered by the United States Department of Agriculture's (USDA)Farm Service Agency (FSA), intended to help overcome obstacles to the establishment of biofuel industries.

A single biomass processing facility may depend on the production of a strange new crop by hundreds of farmers over many years. Financing to build the facility will likely depend on advance assurance of these supplies. BCAP's support is intended to help overcome the related organizational difficulties.

Under BCAP, farmers in Project Areas receive payments for growing biofuel crops. The payments may consist of up to 75 percent of establishment costs, annual rental payments for up to five years, and/or matching of sales receipts. Proposals for Project Areas are submitted to FSA by processors or farmer groups.

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