Effective immediately, the Biomass Crop Assistance Program is on hold in all states. Local FSA offices will no longer accept new applications for Collection, Harvest, Storage and Transportation (CHST) matching payments.

 

The USDA proposed new rules for the program on February 4. A 60-day comment period follows the announcement.  After the comment period, the USDA will develop a more final set of implementation standards. Once these rules are announced, the agency will begin accepting applications once again.  For applications received prior to the suspension of the program, payments will continue through March 31.

The new rules highlight the fact that the 2009 implemen- tation--based on the Notice of Funds Availability--was a sort of rapid prototyping. It allowed the USDA to get a small version of the program up and running so it could evaluate the effects of the program on markets, the total costs of the program, and whether the program accomplished its goals. It appears the process was successful.

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The proposed rules released by the USDA on February 4 also include the draft guidelines describing the biomass crop establishment cost and annual payment program. What follows is a highlight of the major requirements of the program. All page references are to the 104-page Proposed Rules on the USDA's website.

Eligible Crops (pages 36-37):
Except for invasive and noxious species and crops covered under Title I of the 2008 Farm Bill, all renewable plant materials, including plants and trees, are considered eligible crops. No further detail appears in the proposed rules.

Eligible Lands (pages 40-43):
Both agricultural land and non-industrial private forest lands are eligible. Non-industrial private forest land is defined as rural land with existing tree cover owned by private individuals and groups, but excludes ownership by corporations whose stocks are publicly traded or those engaged primarily in the production of wood products. Lands must be located in a project area to be eligible.

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