The USDA is offering up to $500 million in federal funds to increase the availability of domestic biofuels. The money is being funded through the Inflation Reduction Act, which passed Congress and was signed into law by President Biden in 2022.
USDA Secretary Tom Vilsack says expanding biofuels will bring more income opportunities to all farmers across rural America.
“We have seen a record amount of farm income generated over the last two years in America. Sadly, a significant amount of that has been consolidated in the hands of a relatively small number of farms. 150,000 farms that sell more than $500,000 in products received about 89 percent of that income, which meant that nearly two million farms across the country had to share the remaining 11 percent. That’s why it’s important for us to look for ways in which we can expand income opportunities, especially for small and mid-sized operators,” says Vilsack.
The agency made $50 million available to expand the use and availability of higher-blend biofuels through the Higher Blends Infrastructure Incentive Program. The department will begin accepting applications in July for another $450 million in grants.
Sen. Amy Klobuchar (D-MN) says biofuels help make the country more energy-secure.
“For the reasons that they bring down energy costs and strengthen our national security. Why look to the Middle East for energy when our farmers can fuel the world from our own backyard,” says Klobuchar.
The grants will support the infrastructure needed to lower out-of-pocket costs for transportation fueling and distribution facilities. The funds will be used to help install and upgrade biofuel-related infrastructure like pumps, dispensers, and storage tanks.
Source: NAFB News Service.