Date: 2009-12-14
Subsidy will affect wood supplies
A regulation being considered by the U.S. Department of Agriculture could affect the availability of wood material for composite wood products manufacturers in the U.S.
According to the Composite Panel Assn., the USDA’s Biomass Crop Assistance Program would take wood away from wood and construction products and divert it to the biomass fuel industry. Also, taxpayers could pay for a $500 million subsidy to make this happen in 2010, according to CPA.
The association suggests that BCAP can be modified to change the list of raw materials eligible for a federal subsidy. BCAP’s list of eligible materials includes residual wood that is used for higher value purposes such as cabinets, furniture, doors, flooring and construction.
The 2008 Farm Bill contained language that renewable biomass includes materials that “Would not otherwise be used for higher-value products. According to CPA, the inclusion of wood used for higher-value products goes against this directive. The purpose in the BCAP was the collection of unused and under-utilized wood and agricultural scraps from farming and timber activities.
Review underway
The BCAP program is reported to be under review by the Office of Management and Budget. CPA and other organizations have asked that the $500 million subsidy be reviewed and stopped until the unintended consequences are resolved and stakeholders in the issue be heard from.
BCAP would take wood chips and sawdust used to make composite wood products such as cabinets and furniture and subsidizes the materials so they can be used as biomass fuel.
According to CPA, the proposed BCAP subsidy is enough to take away the entire feedstock of U.S. composite panel manufacturers, all in one federal intervention. The action could disrupt the entire composite panel industry and that of many manufacturers of wood-based products.
A better approach, CPA says, would be an amended BPAC program that increases fiber supply and encourages development of alternative fuels from under-utilized materials such as biomass crops. Higher-value industrial raw materials such as wood chips and sawdust, should be removed from the list of materials eligible for a federal subsidy.
For more information, contact Tom Julia, CPA president, at 703.724.1128.
Updated: Mar 19, 2010
This article appeared in CabinetMaker+FDM, January 2010. ©Copyright 2010, All Rights Reserved.