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Support and Open Enrollment for Producers of Advanced Biofuel Announced

Deb Yocum
Release Date
Oct 25, 2013

Nebraska USDA Rural Development announces Fiscal Year 2013 payments issued to support the production of advanced biofuel. Payments issued in Nebraska throughout the fiscal year total $3,374,309. The assistance supports four Nebraska producers with advanced biofuel production at their production facilities.   Producers receiving the assistance include:

   Ag Processing, Inc headquartered in Omaha, Nebraska, received total payments of $3,347,923. The company produces biodiesel from soybean and other oils at facilities located in Sergeant Bluffs and Algona, Iowa and St. Joseph, Missouri.

   Cornhusker Energy Lexington, LLC received total payments of $4,513. The company operates an ethanol processing facility in Lexington, Nebraska. Ethanol produced from sorghum feedstock (versus corn) qualifies as an advanced biofuel and therefore is eligible to receive payments under the Advanced Biofuel Producer Payment program.

   Chief Ethanol Fuel, Inc received total payments of $17,674. The company operates an ethanol processing facility in Hastings, Nebraska and has also expanded the feedstock used in the production of ethanol to include sorghum.

   KAAPA Ethanol, LLC received total payments of $4,199. The company operates an ethanol production facility near Minden, Nebraska. They have also taken advantage of the opportunity to expand the feedstock used in their plant to produce an advanced biofuel product. The company’s sorghum based ethanol production received payments under the Advanced Biofuel Producer Payment Program.

    The United States Department of Agriculture remains focused on carrying out its mission, despite a time of significant budget uncertainty.

   Agriculture Secretary Vilsack notes that today's funding announcement is another reminder of the importance of USDA programs for rural America.  A comprehensive new Food, Farm and Jobs Bill would further expand the rural economy.  He said that's just one reason why Congress must get a comprehensive Food, Farm and Jobs Bill done as soon as possible.

    The funding is provided through USDA’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 advanced biofuels produced from renewable biomass, other than corn kernel starch. In addition to the examples as noted in the payments above, eligible advanced biofuel may include but are not limited to: ethanol produced from cellulosic sources such as crop residues, animal, food, and yard waste converted to biogas for sale as compressed gas or converted to electricity, wood waste materials converted to bioenergy pellets for sale as a fuel product, animal fats and vegetable or other oils converted to a biofuel product. Biofuel can be produced from a variety of non-food sources, including waste products.

   Open enrollment in the Advanced Biofuel Payment Program occurs annually throughout the month of October. Parties currently producing eligible advanced biofuel or those who are considering its production throughout fiscal year 2014 should contact USDA Rural Development immediately to file an enrollment by October 31st to be eligible for payments on fuel produced from October 2013 through September of 2014. Please contact Deb Yocum, Nebraska Energy Coordinator at debra.yocum@ne.usda.gov or 402.437.5554 for details.

   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’s investments in rural communities support the rural way of life that stands as the backbone of our American values.