Bioenergy Program

The goals of the Bioenergy Program are to encourage increased purchases of eligible commodities for the purpose of expanding production of such bioenergy and support new production capacity for such bioenergy.

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Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Relevant Nonprofit Program Categories

Program Accomplishments


Uses and Use Restrictions

Bioenergy producers may increase their purchases of eligible commodities as compared to the previous fiscal year purchases and convert that commodity into increased commercial fuel grade ethanol and biodiesel production as compared to previous fiscal year ethanol and biodiesel production.

The Program defines eligible commodities as barley, corn, grain sorghum, oats, rice, wheat, soybeans, sunflower seed, canola, crambe, rapeseed, safflower, sesame seed, flaxseed, mustard seed, and cellulosic crops, such as switchgrass and short rotation trees, grown on farms, for the purpose of producing ethanol and/or biodiesel or any other commodity or commodity by-product as determined and announced by CCC used in ethanol and biodiesel production which is produced in the United States and its territories.

Eligibility Requirements

Applicant Eligibility

All bioenergy producers are eligible to participate in the program.

To participate, ethanol producers must provide USDA with evidence of increased production of bioenergy and increased purchase and utilization of agricultural commodities related to that increased production.

Biodiesel producers must provide evidence of production and purchase and utilization of agricultural commodities related to that production.

Beneficiary Eligibility

Bioenergy producers.


USDA will collect information from bioenergy producers that request payments under the Bioenergy Program as the Secretary may require to ensure that benefits are paid only to eligible bioenergy producers for eligible commodities. Bioenergy producers seeking program payments will have to meet minimum requirements by providing information concerning the production of bioenergy. Applicants must certify that they will abide by the Bioenergy Program Agreement's provisions. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

There is no preapplication coordination related to this program.

This program is excluded from coverage under E.O.


Application Procedures

The Bioenergy Program sign-up period is from August 1 through August 31, or as announced. To participate in the program, producers must complete a Bioenergy Program Agreement, Form CCC 850 and Bioenergy Program Annual Production Information, Form CCC-850 Supplement.

Award Procedures



Please contact the program contact listed in the Information Contacts section below or Headquarters office.


Title IX, Section 9010, Farm Security and Rural Investment Act of 2002 and Section 5(e) of the CCC Charter Act, 15 U.S.C. 714c.

Range of Approval/Disapproval Time

From 1 to 30 days.


Any participant who is subject to an adverse determination may appeal the determination by filing a written request with the Deputy Administrator at the following address: Deputy Administrator, Commodity Operations, Farm Service Agency, Department of Agriculture, STOP 0550, 1400 Independence Avenue, S.W., Washington, DC 20250-0550. To receive consideration, the participant must file the appeal within 30 days after written notice of the decision, which is the subject of the appeal, is mailed or otherwise made available to the participant. An appeal shall be considered to have been filed when personally delivered in writing to the Deputy Administrator or when the properly addressed request, postage paid, is postmarked. The Deputy Administrator may accept and act upon an appeal even though it is not timely filed if, in the judgement of the Deputy Administrator, circumstances warrant such action.



Assistance Considerations

Formula and Matching Requirements

USDA will pay eligible producers up to $150 million each FY on a quarterly basis. Payments to each producer are capped at 5 percent of available funding (up to $7.5 million) each FY. USDA will base ethanol payments on the increase in ethanol production compared to the previous FY's production and biodiesel payments on the biodiesel production each FY. Payments will be structured to encourage participation of producers with less than 65 million gallons annual production capacity. Producers with total annual production of: (a) less than 65 million gallons are reimbursed 1 feedstock unit for every 2.5 used for increased production; (b) 65 million gallons or more are reimbursed 1 feedstock unit for every 3.5 used for increased production. In addition, biodiesel producers are reimbursed for base production at 50 percent the rate of increased production. If the applications exceed the program's available funding, USDA will apply a factor to payments to hold program expenditures to available funding for the applicable FY.

Length and Time Phasing of Assistance

The program is funded at up to $150 million each FY for FYs 2003 through 2006.

Post Assistance Requirements


Multiple FY Agreements require annual production estimate reports to be submitted during each applicable FY sign-up period.

Such reports must comply with the terms of the Agreement and Bioenergy Program regulations.

In all cases, the accounting for compliance will be made on a per FY basis.


Participants under this program are subject to audit by the Office of the Regional Inspector General, Department of Agriculture.


Bioenergy producers or any other individual or entity receiving payments for Bioenergy Program shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which payments were received.

Financial Information

Account Identification



(Direct Payments) FY 07 $60,000,000; FY 08 est $0; and FY 09 est not reported.

Range and Average of Financial Assistance

Not applicable.

Regulations, Guidelines, and Literature

Program is announced through news media and is posted on Farm Service Agency website. Regulations published in Title IX, Section 9010, Farm Security and Rural Investment Act of 2002. Bioenergy Program fact sheet may be located online at

Information Contacts

Regional or Local Office


Headquarters Office

Department of Agriculture, Farm Service Agency, Kansas City Commodity Office, Contract Reconciliation Division, P.O. Box 419205, STOP 8758, Kansas City, MO 64141-6205. Telephone: (816) 926-6525.

Criteria for Selecting Proposals

(1) All fuel ethanol production is eligible; however, ethanol under 200 proof will be converted to 200 proof gallons before payment calculations are made; (2) Ethanol producers must produce and sell ethanol commercially and have authority from the Bureau of Alcohol, Tobacco, Firearms, and Explosives to produce ethanol for fuel or sell denatured ethanol rendered unfit for beverage use; (3) Biodiesel producers must produce and sell biodiesel commercially, and the biodiesel must be a mono alkyl ester manufactured in the United States that meets the American Society for Testing and Materials Standard's biodiesel standard.

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