The US Department of Agriculture’s (USDA) new Biomass Crop Assistance Program (BCAP) final rule has adopted an approach on the critical issue of matching payments designed to minimise distortions to the market for wood fibre that is essential for the forest products industry.

“We appreciate USDA’s consideration of industry concerns and the modifications made in the rulemaking process that will minimise market distortions and focus on supply,said Donna Harman, president and ceo of the American Forest & Paper Association (AF&PA).

“USDA’s revised approach on BCAP helps preserve existing jobs while also increasing renewable energy development particularly in rural communities.”

According to the USDA, under its new BCAP final rule, the department will resume making payments to eligible producers of biofuels.

This system is designed to ensure that a sufficiently large base of new, non-food, non-feed biomass crops is established in anticipation of future demand for renewable energy consumption.