Growing and handling sustainable biomass (plant material, vegetation, and agricultural waste) for renewable energy production can be a win-win for farmers and our country as a whole. Through the Biomass Crop Assistance Program (BCAP), farmers can receive funding to offset some of the cost of experimenting with growing crops for bioenergy production. BCAP is intended to promote the cultivation of bioenergy crops that show promise for producing highly energy-efficient, advanced bioenergy or biofuels, and to develop those new crops and cropping systems in a manner that preserves natural resources.
Please note, however – BCAP currently does not have any funding. It requires an annual congressional appropriation and has not been funded since 2017, though it might again be funded in the future.
Learn More About BCAP:
Administered by USDA’s Farm Service Agency (FSA), BCAP provides incentives to help farmers grow advanced bioenergy feedstocks (crops that are well suited to be turned into energy) for use in biorefineries in their area. BCAP is not intended to fund crops that are primarily grown for food or animal feed. Both farmers and bioenergy production facilities participate in BCAP through selected “projects” necessary to ensure a direct tie-in between feedstocks and facilities. Projects may be sponsored by a group of producers or by a bioenergy facility.
Farmers participating in a BCAP project will be eligible to enter into a 5-year agreement with USDA to establish annual or perennial crops or a 15-year agreement for woody biomass. BCAP provides:
Under the contract with USDA, producers participating in a BCAP project are eligible to receive the following types of payments:
USDA has the discretion to reduce an annual payment, if:
In addition to biomass establishment and production payments under a BCAP project, USDA also can also pay producers or other eligible individuals for the collection, harvest, storage and transportation (CHST) of an eligible crop on land under a BCAP contract. A person does not necessarily need to be part of the BCAP project in order to utilize the CHST portion of the program. The payments are to be provided on a matching basis at a rate of $1 for each $1-per-ton provided by the biomass conversion facility, up to an amount not to exceed $20 per ton, for a period of two years.
Agricultural land and non-industrial private forestlands within a BCAP project area are eligible for funding. The following lands are not eligible for project payments:
In general, the term ‘eligible material’ means renewable biomass harvested directly from the land, including crop residue from any crop, such as corn, that is eligible to receive commodity payments under Title I of the 2018 Farm Bill. Algae are also an eligible material. The following are not eligible for payments:
Under a BCAP contract, producers are required to implement a conservation or forest stewardship plan in conjunction with the Natural Resources Conservation Service.
For CHST, woody biomass may be collected from federal land if the person has rights to collect such wood and if the material collected is a byproduct of preventative treatment that is removed to reduce hazardous fuels or to reduce disease or insect infestation.
Since 2008, USDA has spent over $40 million to help over 800 farmers, ranchers, and nonindustrial forestland owners establish and maintain bioenergy feedstocks in BCAP project areas. USDA has also spent hundreds of millions on biomass collection, harvest, storage and transportation.
BCAP funding has been used to:
Read more about how BCAP has helped farmers produce valuable biofuel crops:
Please note that BCAP currently does not have any funding. It requires an annual congressional appropriation, and has not been funded since 2017, though it might again be funded in the future. If funded, a proposal for a BCAP project would then have to be submitted to the USDA by a project “sponsor,” defined as either a biomass conversion facility or a group of producers who own or operate acreage within a specified project area.
Both the 2008 and 2014 Farm Bills provided BCAP with mandatory farm bill funding, as well as an authorization for additional appropriations. However, the 2018 Farm Bill failed to provide any direct farm bill funding, leaving the program with only an authorization for appropriations. The Fiscal Year 2018 and Fiscal Year 2019 Appropriations Acts did not provide any discretionary funding for BCAP, and the same zero funding is anticipated for Fiscal Year 2020. If funding is made available, the farm bill directs USDA to use between 10 and 50 percent of the total for CHST payments. The remaining funds are to be used to make project payments to producers and to provide technical assistance.
Section 9011 of the Agricultural Improvement Act of 2018 amends Section 9011 of the Farm Security and Rural Investment Act of 2002, to be codified at 7 U.S.C. Section 8111.
Last updated in December 2019.