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Bioeconomy bill seen as opportunity to expand ag demand

Supporters in agriculture say a bill in Congress could help accelerate the U.S. bioeconomy.

James Glueck, executive director of the Plant Based Products Council, says the Biobased Materials Investment and Production Act serves as a tool to help bridge the gap between early-stage innovation and full-scale deployment of biobased materials.

“It aligns with a whole range of federal policies and priorities,” he said, “including strengthening domestic manufacturing through industrial policy, supporting some of the farm bill objectives, and enhancing supply chain resilience.”

Speaking during a PBPC webinar Thursday, Glueck says the legislation creates two tax incentives.

“The first would be a production tax credit,” Glueck said, “which would be 10 cents per pound of eligible renewable material to address the costs related to innovation and scaling of biobased material output. The other option would be a 30% investment tax credit to support the building or retrofitting of manufacturing facilities.”

Glueck says the biobased industry contributes $489 billion to the U.S. economy each year. He says PBPC data shows 71% of Americans are familiar with biobased products, a 20% increase in five years.

Scott Irwin, professor of agricultural economics with the University of Illinois, says the legislation could help boost demand for commodities.

“We’re in the midst of a downturn on the crop sector that has definitely squeezed margins and incomes,” Irwin said. “It’s required the federal government to step in to prevent really widespread financial problems.”

The bill was introduced in April by Minnesota Republican Congresswoman Michelle Fischbach and Democratic Representative Nikki Budzinski of Illinois.