BIOBASED PRODUCTS
 

ASA Position

ASA supports the further development and promotion of the manufacturing and marketing of biobased products, including soy based products. ASA urges USDA to continue implementation and expansion of the federal BioPreferred procurement program and the biobased label. ASA also supports enactment of a production tax credit for biobased products as a means of increasing competitiveness and promoting increased manufacturing of biobased products.

 

Background

Section 9002 of the 2002 Farm Bill created the federal biobased products preferred procurement program (BioPreferredSM program).  The program was updated in the 2008 Farm Bill. The program requires USDA to:

  • Accelerate designation of categories of biobased products for procurement preference under the BioPreferred Program. ASA urges USDA to identify and designate additional product categories.
  • Establish a voluntary program under which the USDA authorizes producers of biobased products to use the label “U.S.D.A. Certified Biobased Product.”
  • Ensure that all federal agencies give preference to the purchase of biobased products designated by the Secretary of Agriculture.

ASA and other farm trade associations and allied industry formed the Biobased Products Coalition (BPC) to work with USDA and other federal agencies to implement the provisions of Section 9002 of the 2008 Farm Bill.

The BPC is also working to support legislation establishing a production tax credit for biobased products. The tax credit would be similar to those provided to producers of biofuels, and is intended to make biobased products competitive in sourcing soybean oil and other feedstocks used in production of biobased products.