A biomass subsidy program in the 2008 farm bill is having unintended consequences on the lumber industry, according to a recent Washington Post story.
The Biomass Crop Assistance Program (BCAP) creates incentives for saw mills and timber companies to sell scrap wood for conversion into biofuel. As a result, the supply of wood chips is reduced for composite byproducts used for roofing, subfloors and furniture.
The report suggest the half-billion dollar program is doing more economic harm than good, and undermining the construction industry, which is already struggling in the current economic recession.
Read the full story at the link below.
