Bush enacts over $190 billion in ag spending by signing new farm bill

Bioenergy Program included in bill
By | May 01, 2002
Surrounded by farm leaders from across the nation, President Bush enacted over $190 billion in Ag spending over the next six years by signing the new farm bill on May 13, 2002.

"We're pleased that the President acted quickly to sign the bill, which includes a new counter-cyclical safety net program for corn farmers, program base acres and partial yield updates, a new energy title to promote expanded ethanol production, and value-added agricultural market development grants. The new farm bill also makes enhancements in current conservation, credit, research, rural development, and trade programs," said Brent Rockhold, Missouri Corn Growers Association (MCGA) president and farmer from Arbela, MO. Rockhold also serves on the Public Policy Action Team for the National Corn Growers Association, which played a key role in lobbying Congress for the new farm bill.

Included in H.R. 2646, the Farm Security and Rural Investment Act of 2002, was a continuation of the Bioenergy Program for expanded bioenergy (ethanol or biodiesel) production.

Bioenergy Program
Under the program, payments will be made to eligible producer, based on the quantity of bioenergy produced during a fiscal year that exceeds the quantity of bioenergy during the previous fiscal year.

Producers of less than 65 mmgy - An eligible producer that produces less than 65 mmgy of bioenergy shall be reimbursed 1 feedstock unit for every 2.5 feedstock units of eligible commodity used for increased production.

Producer of 65 mmgy or more - An eligible producer that produces 65 mmgy or more of beanery shall be reimbursed 1 feedstock unit for every 3.5 feedstock units of eligible commodity used for increased production.

Eligible Commodities - Commodities eligible include wheat, corn, grain sorghum, barley, oats rice, soybeans, sunflowers seeds, rapeseed, canola, safflower, flaxseed, mustard crambe, sesame seed and cottonseed. Also eligible are cellulosic materials such as hybrid poplar and switch grass. In addition, any oils and fats that may be used to produce bioenergy will be eligible.

Funding - Not to exceed more than $150 million for each of fiscal years 2003 through 2006. $0 allocated for fiscal year 2007.

Other Limitations - No eligible producer shall receive more that 5 percent of the total amount made available.