Earlier this year, Agriculture Secretary Tom Vilsack announced new investments in 33 states to support the production and usage of advanced biofuels. Vilsack highlighted these projects as ways the Obama Administration is working to reduce the nation's dependence on foreign oil by creating alternative energy sources and promoting economic development and job creation.

"The Obama Administration is working aggressively to bring greater energy independence to all of America by promoting the production of renewable energy in rural communities," said Vilsack. "This funding will help the nation's advanced biofuel industry produce more fuel from sustainable rural resources, and in doing so create jobs, a new revenue stream for agriculture producers and stimulate rural economies across the nation."

Authorized under Section 9005 of the Farm Bill, the Bioenergy Program for Advanced Biofuels authorizes payments to eligible producers to expand production of advanced biofuels. Payments are based on the amount of advanced biofuels a recipient produces from renewable biomass, other than corn kernel starch. Eligible examples include biofuels derived from cellulose, crop residue, animal, food and yard waste material, biogas (landfill and sewage waste treatment gas), vegetable oil and animal fat. To find out more about the program click here.

The producer payments are intended to provide a financial incentive to biorefineries – a necessary step towards meeting the nation's renewable energy needs. Progressive Dairyman asked some of the recipients how they used their incentive.

Kenn Buelow
Holsum Dairies, LLC
Wisconsin
“The money just goes into our general fund.”

Mike Geerling
Scenic View Dairy, LLC
Michigan
“It went to the digester for maintenance and upgrades.”

David Meissner
Norm E Lane, Inc.
Wisconsin
“We reinvested it into the maintenance costs of the biodigester.”

Troy Statz
Statz Brothers, Inc.
Wisconsin
“It came as income for the digester project.”  PD

—From PD staff and USDA news release