WASHINGTON, D.C. — The U.S. Department of Agriculture announced on Friday it will be providing $700 million to biofuel producers and facilities. The Department says this funding will help lower costs and support the producers who experienced market loses due to COVID-19. The funds will come from the Biofuel Producer Program, which was created as part of the CARES Act.
USDA Secretary Tom Vilsack said these investments “will pave the way to economic recovery for America’s biofuel producers, stimulate a critical market for U.S. farmers and ranchers, and support our nation’s transition to a clean-energy economy.”
The USDA will make payments to 195 biofuel production facilities to support the maintenance and viability of product markets such as corn, soybeans, or biomass that supply biofuel production. These producers experienced losses on a combined 3.7 billion gallons as a result of the pandemic.
This funding will provide economic relief to more than 100 biofuel producers and 195 facilities. Of the 195 biofuel production facilities listed to receive this funding, 13 are located in Iowa.