Agriculture Under Secretary Announces Support for Producers of Advanced Biofuels

Weldon Freeman
District of Columbia
Release Date
Nov 16, 2012

Agriculture Under Secretary for Rural Development Dallas Tonsager today announced payments to 189 companies to support the production and expansion of advanced biofuels.

“These payments support the nation’s expanding alternative fuels industry by encouraging the use of renewable feedstocks and helping to create a stronger energy future,” Tonsager said. “Advanced biofuels production is a key component of the President’s 'all-of-the-above' energy strategy, which is designed to reduce America’s reliance on foreign oil.”

The payments total more than $15.7 million. The funding is being provided through USDA Rural Development’s Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of biofuels produced from renewable biomass from a wide variety of non-food sources, including waste products.

Examples of eligible feedstocks include but are not limited to crop residue; animal, food and yard waste material; and vegetable oil. Through this program and others, USDA is working to support the research, investment and infrastructure necessary to build a strong biofuels industry that brings enhanced economic opportunity to rural areas.

For example, Bonanza Bioenergy, LLC in Kansas will receive $139,002 in payments for ethanol production from sorghum. In Mississippi, Elevance Natchez, Inc. will receive a $119,587 in payments for converting waste products into biodiesel. Texas-based Element Markets, LLC will receive $5,397 in payments for generation of energy through use of an anaerobic digester.

For a list of the 166 producers receiving payments of more than $500 for the production of advanced biofuels, please click here (The 23 producers receiving payments of $500 or less are not included in the list.)

President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities.

USDA, through its Rural Development mission area, has an active portfolio of more than $174 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.