Agriculture Canada is doubling its funding for the popular Biofuels Opportunities for Producers Initiative.
The objective of the program is to help develop feasibility studies and sound business plans for ethanol and biodiesel projects that have more than one-third producer ownership.
Demand for the first $10 million in funding announced July 2006 was so great that the federal government extended the program for another year and added another $10 million.
“Canada’s new government is serious about achieving real results on the environment and to create new opportunities for our farmers. Expanding this program is part of our commitment to getting that job done,” said agriculture minister Chuck Strahl.
Read Also
Increasing farmland prices blamed on investors
a major tax and financial services firm says investors are driving up the value of farmland, preventing young farmers from entering the business. Robert Andjelic said that is bullshit.
Environment minister John Baird said the announcement recognizes that farmers are critical to the success of Canada’s emerging biofuel policy.
“This initiative will help ensure farmers have a chance to participate in and benefit from helping Canada meet its target of five percent biofuel content in fuels by 2010,” he said.
The Saskatchewan Ethanol Development Council, which had been critical of the original Biofuels Opportunities for Producers Initiative, applauded the March 3 announcement.
“I’m gratified to see the federal government paying attention to this and recognizing that there is a need. I just hope that it is represented in the upcoming budget as well,” said Ken Graham, acting president of the council.
One of the group’s criticisms of the BOPI program was that it was grossly undercapitalized.
“Because of the limited amount of funding that was available, some very, very worthwhile projects were excluded,” said Graham.
The additional $10 million should help address that concern. However, only $3 million will be made available immediately with the remaining $7 million doled out in the 2007-08 fiscal year. Graham would prefer his members have access to all of the additional money immediately so they can start working on their projects.
He still has concerns about the group’s other main criticism of the BOPI program, which was that Saskatchewan, a province that is home to 45 percent of Canadian wheat and canola production, only received 12 percent of the first $10 million.
Dallas Carpenter, spokesperson for the Saskatchewan Council for Community Development, which delivers BOPI funding in that province, said there is no shortage of demand for such a government program.
There were 26 applications for funding in the first round, nine of which will receive a portion of the $1.2 million allocated to Saskatchewan projects.
“There is certainly a lot of interest in this funding out there,” he said.
Those nine successful first-round candidates will be the only ones that get a crack at the first $3 million in new funding. SCCD will be receiving new applications for the remaining $7 million until June 22.
All of the provincial councils must submit their recommendations to Ottawa by September.
Community groups that receive funding for a feasibility study in 2007 will be a long way behind companies like Husky Energy, which has already built a 130 million litre ethanol plant in Lloydminster, Sask., and is in the process of building a twin plant in Minnedosa, Man., that will open this fall.
But Graham said there will be plenty of opportunity for growth in the ethanol and biodiesel sectors and farmers are well positioned to take advantage of that opportunity.
“I don’t subscribe to the theory that we’ve missed the boat,” he said.
