Four Nebraska Companies Receive Biofuel Payments

Three state ethanol facilities will test ethanol production from sorghum.

Published on: Dec 3, 2012

Four Nebraska grain and ethanol operations have received USDA payments to support the expansion of advanced biofuels. USDA announced payments to 189 companies nationwide for this purpose, according to Dallas Tonsager, USDA undersecretary for Rural Development.

The four Nebraska payment recipients are:

•Ag Processing, Inc. headquartered in Omaha, will receive $942,335 in payments for biodiesel production from soybean, canola and waste vegetable oils at their St. Joseph, Missouri, Sargeant Bluffs, Iowa, and Algona, Iowa production facilities.
•Chief Ethanol Fuel will receive $10,110 in payments for ethanol production from sorghum at its plant located in Hastings.

Four Nebraska Companies Receive Biofuel Payments
Four Nebraska Companies Receive Biofuel Payments
•Cornhusker Energy will receive $12,105 in payments for ethanol production from sorghum at its plant located in Lexington.
•KAAPA Ethanol will receive $658 in payments for ethanol production from sorghum at its plant located in Minden.

"These payments support the nation's expanding alternative fuels industry by encouraging the use of renewable feedstocks and helping to create a stronger energy future," Tonsager says.

The payments total more than $15.7 million nationally. The funding is being provided through USDA Rural Development's Advanced Biofuel Payment Program, which was established in the 2008 Farm Bill. Under this program, payments are made to eligible producers based on the amount of biofuels produced from renewable biomass from a wide variety of non-food sources, including waste products.

Examples of eligible feedstocks include, but are not limited to, crop residue, animal, food and yard waste material and vegetable oil. Through this program and others, USDA is working to support the research, investment and infrastructure necessary to build a strong biofuels industry that brings enhanced economic opportunity to rural areas, Tonsager says.

Under the Advanced Biofuel Payment Program, sorghum is considered an advanced biofuel.

For information on Rural Development loans and grants to other rural businesses and individuals, visit Rural Development's new interactive web map featuring program funding. The site is http://www.rurdev.usda.gov/RDSuccessStories.html.