U.S. Government To Subsidize Biofuels Production
Wall Street Journal
By Tennille Tracy Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The U.S. Agricultural Department has launched a program to subsidize the production of biofuels, anticipating an increase in demand for renewable energy.
The program will pay biofuels producers up to 75% of the costs of establishing perennial crops. It will also deliver up to five years of payments for annual or non-woody perennial crops and up to 15 years of payments for woody perennial crops.
The program will also provide matching payments to agricultural and forest landowners for the transportation of certain materials that are sold to biomass conversion facilities.
"The Obama Administration is aggressively supporting our nation's farmers, ranchers and producers of biofuels as they work to bring greater energy independence to America," Agriculture Secretary Tom Vilsack said in a statement.
The Agriculture Department also announced a joint five-year plan with the Federal Aviation Administration to develop aviation fuel from forest and crop residues and other "green" feedstocks.
-By Tennille Tracy, Dow Jones Newswires; 202-862-6619
Submitted by mwisniewski on Thu, 2010-10-21 10:23