A subsidy that next-generation biofuel producers are counting on to procure their feedstocks is in danger in Congress.
The subsidy program, created in the 2008 farm bill, is set to expire in 2012 and it could be out of money sooner if House Republicans get their way.
An Agriculture Department spending bill that the House could debate this week would eliminate funding from the Biomass Crop Assistance Program for the budget year that starts Oct. 1.
Poet LLC is already using the subsidies for a $250 million project at Emmetsburg designed to produce 25 million gallons of ethanol a year from bales of corncobs, husks and stalks that farmers would be paid to harvest.
Farmers who harvest the corn stover for Poet get government payments for two years of $45 a ton. Poet hasn't started on the ethanol distillery yet - it will be attached to an existing corn-starch facility - but farmers already are selling stover to the company for research purposes. ...