By: Chad Franzen Posted at: 02/04/2010 06:40 AM
SIOUX FALLS, S.D. (AP) - The federal Agriculture Department has issued a proposed rule for the next phase of the Biomass Crop Assistance Program championed by Sen. John Thune.
The South Dakota Republican wrote the program, which was part of the 2008 Farm Bill. It makes payments to producers of nonfood crops such as prairie grasses that can be used for energy production.
The first phase of the program involved payments for the collection, harvest, storage and transportation of renewable biomass delivered to local plants. The next phase will pay farmers to grow the crops in areas close to biorefineries. People have about two months to comment on the proposed rule.
Thune says biofuels can help the U.S. reach energy independence while at the same time creating economic opportunities for growers.
