Information provided by a USDA news release. 

The United States Department of Agriculture (USDA) today released a report on the economic impact and contribution of the U.S. biobased products sector and announced additional changes the department is making to improve and promote the development of biobased products.

The American Soybean Association (ASA) is a leader in establishing and supporting the federal programs and policies that promote the development of the biobased products sector. As a founding member of the Biobased Products Coalition, ASA has worked over the years to establish and expand the Biobased Market Program, which is authorized and funded through the Farm Bill and administered by USDA. Soybeans can be utilized in a broad range of industrial products, including cleaners, lubricants, foams and plastics. As outlined in the USDA announcement below, the economic impact and market potential for these products is significant and offers tremendous potential for growth.

According to the Economic Impact of the Biobased Product Industry report, each job in the biobased products industry is responsible for generating 1.64 jobs in other sectors of the economy. In 2013, 1.5 million jobs directly supported the biobased product industry, resulting in 1.1 million indirect jobs in related industries, and another 1.4 million induced jobs produced from the purchase of goods and services generated by the direct and indirect jobs.

The report builds on the "Why Biobased?" report released by the USDA in October 2014. Estimates are that the use of biobased products currently displaces about 300 million gallons of petroleum per year - equivalent to taking 200,000 cars off the road.

USDA Secretary Tom Vilsack also announced changes to include new forest products in the BioPreferred program, along with proposed changes to the former Biorefinery Assistance Program to assist in the development of cutting-edge technologies for advanced biofuels, renewable chemicals, and biobased product manufacturing.

The final BioPreferred program rules will no longer exclude mature market products (those that had a significant market share prior to 1972), providing consumers with more innovative wood products and other materials carrying USDA BioPreferred® label. Forest products that meet biobased content requirements, notwithstanding the market share the product holds, the age of the product, or whether the market for the product is new or emerging, also now meet the definition of "biobased product."

The Secretary also said today that USDA is making improvements to its Biorefinery Assistance Program (Section 9003). The program, which was renamed as the Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program as part of the program's Farm Bill reauthorization, provides loan guarantees of up to $250 million for the construction and retrofitting of commercial scale biorefineries and biobased product manufacturing facilities. In a rule that will be published in the Federal Register next week, biorefineries that receive funding are allowed to produce more renewable chemicals and other biobased products, and not primarily advanced biofuels. Also, biobased product manufacturing facilities would be eligible to convert renewable chemicals and other biobased outputs of biorefineries into "end-user" products. The new regulations also implement a streamlined application process.

Created by the 2002 Farm Bill and reauthorized and expanded as part of the 2014 Farm Bill, the USDA BioPreferred program's purpose is to spur economic development, create new jobs and provide new markets for farm commodities. The BioPreferred program commissioned the independent Economic Impact of the Biobased Product Industry report, which is primarily authored by Dr. Jay Golden, Director of Duke University's Center for Sustainability & Commerce, and Dr. Robert Handfield, Professor of Supply Chain Management at North Carolina State University's Poole College of Management.

The report found that the seven major overarching sectors that represent the U.S. biobased products industry's contribution to the U.S. economy are: agriculture and forestry, biorefining, biobased chemicals, enzymes, bioplastic bottles and packaging, forest products, and textiles.

The study also includes location quotients by state to show the impact of the industry on individual states. Seven case studies are presented from stakeholders such as The Coca-Cola Company and PlantBottle packaging, Patagonia, and Ford.

Today's announcement was made possible by the 2014 Farm Bill. The 2014 Farm Bill builds on historic economic gains in rural America over the past five years, while achieving meaningful reform and billions of dollars in savings for taxpayers. Since enactment, USDA has made significant progress to implement each provision of this critical legislation, including providing disaster relief to farmers and ranchers; strengthening risk management tools; expanding access to rural credit; funding critical research; establishing innovative public-private conservation partnerships; developing new markets for rural-made products; and investing in infrastructure, housing and community facilities to help improve quality of life.