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USDA Makes Payments to Support Production of Advanced Biofuel -- Three Nebraska Companies Receive Funding to Help Reduce Dependance on Foreign Oil and Increase Development of Domestic Renewable Energy

Deb Yocum
Release Date
Mar 06, 2014

Agriculture Under Secretary Doug O’Brien today announced that USDA is making nearly $60 million in payments to 195 producers to support the production of advanced biofuel.

Producers across the country are yielding strong results. Ag Processing, Inc headquartered in Omaha, Nebraska, received total payments of $3,855,520. 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 $957.00. 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 $4,079.00. 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.

“These payments represent the Obama Administration’s commitment to support an ‘all-of-the-above’ energy strategy and to help create jobs,” O’Brien said.  “Producing advanced biofuels is a major component of the effort to take control of America’s energy future by developing domestic, renewable energy sources.”

The funding is being provided through the Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill and reauthorized in the recently signed 2014 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.  Examples of eligible feedstocks include but are not limited to: crop residue; animal, food and yard waste; vegetable oil; and animal fat.

Through this program and others at USDA, the department is working to support the research, investment and infrastructure necessary to build a robust and lasting biofuels industry that creates jobs and broadens the range of feedstocks used to produce renewable fuel.  More than 300 producers in 47 states have received $279 million in payments since the program’s inception.  It has supported the production of more than four billion gallons of advanced biofuel and the equivalent of more than 40 billion kilowatt hours of electric energy.

View the list of producers receiving payments here.

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. President Obama and Agriculture Secretary Vilsack are committed to a smarter use of federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.