Deadline to apply for program quickly approaching
Courtesy Photo: Tour of the Rio Valley Bio Fuels facility shows the process of turning vegetable oil into bio diesel. The company was successful in acquiring payments from USDA Rural Development earlier this year which has helped the company to expand its operation.
(October 22, 2012 Albuquerque, NM) USDA Rural Development State Director Terry Announced today the deadline to apply for the Advanced Biofuels Payment Program is quickly approaching.
In making the announcement Brunner said, "Although many people don't realize it, rural America produces enough biofuels to replace almost 10 percent of our gasoline for cars and trucks." Brunner added, "Increasing the production of biofuels presents an extraordinary opportunity to grow our economy, build new industries, put hundreds of thousands of Americans to work, and minimize risks to our environment. This is why Rural Development is seeking to fund these types of projects."
Last fiscal year New Mexico saw two successful projects that are producing two different types of biofuel. The Rio Valley Biofuels in Anthony turns waste vegetable oil from restaurants into biodiesel and Mt. Taylor Machine in Milan changes waste wood material into wood pellets. Both companies are currently receiving payments for production/sales from US Department of Agriculture-Rural Development through the Advanced Biofuels Payment Program.
Qualifying advanced biofuels producers produce and sell the following advanced biofuels derived from biomass (other than corn kernel starch):
1. cellulose, hemicelluloses, or lignin;
2. sugar and starch (other than corn kernel starch derived ethanol);
3. waste material, including crop residue other vegetative waste material, animal waste, food waste, and yard waste;
4. renewable biomass, including vegetable oil and animal fat;
5. biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass);
6. butanol or other alcohols produced through the conversion of organic matter from renewable biomass;
7. other fuel derived from cellulosic biomass.
The biofuel must be produced in the US, be a solid, liquid, or gas; be a final product, and sold through an arm's length transaction to a third party.
Rural and urban producers are eligible. The size of the payment depends on the number of producers participating in the program and the BTUs of biofuel produced.
The enrollment period for this program is from October 1-30, 2012. Details about the program, including eligibility requirements and financing information are available at the USDA-RD website http://www.rurdev.usda.gov/BCP_Biofuels.html . For more information about the program, contact Jesse Monfort Bopp at USDA-RD in Albuquerque at (505)761-4952 or
For additional information on RD projects, please visit Rural Development's new interactive web map featuring program funding and success stories for fiscal years 2009-2011. The data can be found at: http://www.rurdev.usda.gov/RDSuccessStories.html.
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 Tom 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.
USDA, through its Rural Development mission area, has an active portfolio of more than $172 billion in loans and loan guarantees. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.
