Contact: Kevin Herglotz, (202) 720-4623
kevin.herglotz@usda.gov
Tim McNeilly, (202) 690-0498
tmcneill@rdmail.rural.usda.gov

USDA ANNOUNCES $2.4 MILLION IN VALUE ADDED GRANTS IN SUPPORT OF PRESIDENT'S NATIONAL ENERGY STRATEGY

     WASHINGTON, June 25, 2001--The U.S. Department of Agriculture today announced the approval of $2.4 million in value-added agricultural product market development grants that will assist in the development of alternative energy sources as part of the Bush Administration's national energy strategy.

     "These grants will help further the development of biomass fuel facilities that utilize agricultural products in finding long-term energy solutions," said USDA Secretary Ann M. Veneman. "Agriculture is part of the solution to energy shortfalls and we continue seeking these type of projects in support of the President's energy strategy."

     In May of 2001, President Bush unveiled his national energy policy, which included a greater reliance on alternative and renewable energy sources, including the use of biofuels and biomass energy sources. Ethanol is the most widely used biofuel, and its production is currently 1.9 billion gallons a year, representing a nearly ten-fold growth from about 200 million gallons a year in 1980. When complete, these grants will bring an additional 105 million gallons of ethanol production to the U.S.

     "For centuries, America's agricultural producers have brought us safe and reliable food for our tables," said Veneman. "Today, agriculture is a leading force in finding alternative uses for raw commodities and playing a key role in developing renewable sources for tomorrow's energy needs."

     The following is a list of the approved project grants:

• Pine Lake Corn Processors, LLC, Eldora, Iowa - $500,000
  The grant will be used toward the building and operating a 15-million gallon per year ethanol fuel plant.
  
  
• Siouxland Energy & Livestock Cooperative, Sioux Center, Iowa - $500,000
  Grant funds will be used to establish a working capital account to fund operations for a 14-million gallon per year ethanol plant.
  
  
• Dakota Corn Processors Cooperative, Lennox, S.D. - $401,704
  Grant funds will be used to cover the cost of the equity drive to build a 40-million gallon per year ethanol plant.
  
  
• Pacific Rim Ethanol, LLC, Ritzville, Wash. - $500,000
  Grant funds will facilitate the construction of a 40-million gallon per year fuel and industrial grade ethanol and wheat glutten processing facility in Central Washington.
  
  
• Minnesota Soybean Processors, Brewster, Minn. - $500,000
  Grant funds will be used to complete the equity drive and to conduct additional market evaluations for food and fuel grade soybean oil.

     Funds for the Value-Added Agricultural Product Market Development Grant program are administered through the Rural Business-Cooperative Service, an agency within USDA Rural Development. Additional program funding and grant application procedures can be obtained by visiting USDA's web site at http://www.rurdev.usda.gov/rbs/coops/vadg.htm.

     The $2.4 million grant is part of a $10 million announcement made today by USDA on Value-Added Agricultural Product Market Development Grants. A complete list of grant recipients can be obtained through visiting USDA Rural Development's web site at http://www.rurdev.usda.gov/rd/newsroom/2001/vadgrecips.html.

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