USDA is preparing to contract for two studies that would help it determine how best to provide federally subsidized crop insurance to producers of biofuel feedstocks, including corn stover, straw and woody biomass. The feasibility studies are funded by USDA's Risk Management Agency.
The Energy Independence and Security Act of 2007 established a mandate that the U.S. economy use 36 billion gallons of renewable transportation fuel per year in its transportation fuel supply by 2022. Of that, 20 billion gallons are targeted to come from sources such as switchgrass, energy cane, woody biomass and other non-food feedstocks.
Separately, Agriculture Secretary Tom Vilsack said he plans to sign a memorandum of understanding with the Governors' Biofuels Coalition to encourage development of bio-based products for energy consumption, animal feed, chemicals, and other uses.
The biofuels coalition has 36 state members. It initially was formed to provide leadership on ethanol policy. The coalition also addresses issues related to biodiesel, advanced biofuels, and other renewable products, according to a USDA statement.
USDA said the memorandum will call for the parties to work together to reduce energy consumption derived from fossil fuels. It will encourage parties to work to eliminate obstacles to the development of higher-blend biofuels, to develop systems that make feedstock production sustainable throughout the United States, and to increase public understanding of the benefits of agriculture.
