WASHINGTON — The U.S. will pay farmers to produce non-food crops that can be converted to fuels for planes, cars and power plants to reduce reliance on imported oil and boost rural economies, said Agriculture Secretary Tom Vilsack on Thursday.
The Agriculture Department will resume payments to farmers under the 2008 Biomass Crop Assistance Program for eligible perennial crops and work with the Federal Aviation Administration to develop aviation fuels from farm wastes, Vilsack said at the National Press Club.
The effort is part of a plan to boost annual production of biofuels, including corn-based and cellulosic ethanol, to 36 billion gallons required by the Renewable Fuels Standard. U.S. drivers will use about 138 billion gallons of gasoline this year, and ethanol facilities are expected to produce 12.8 billion gallons of the additive, according to the Renewable Fuels Association.
Vilsack said he is directing the agency to plan within 60 days and help fund construction of five refineries spread across the U.S. to process biomass into fuels. Higher costs for refiners related to use of the new feedstocks will be paid from up to $281.5 million that remains from the 2008 Farm Act, Vilsack said.
