RISI's Wood Biomass Market Report details new draft rules for Biomass Crop Assistance Program

BOSTON, MA, Feb. 8, 2010 (Press Release) - The Wood Biomass Market Report today commented that new "draft" rules announced by the Farm Services Agency for the Biomass Crop Assistance Program (BCAP) come closer to providing assurances that wood for higher-value products will not be diverted for use as biomass. The Report, published monthly by RISI, the leading information provider for the global forest products industry, has reported since the program's inception last year on the concern among traditional forest products players that BCAP would drive up prices for composite panel furnish, OSB raw material, pulpwood and even some low-grade sawlogs.

The Report also stated that payments made through the BCAP program are just now flowing to the market in earnest from a $517 million allocation that is good through March 31, 2010. While these payments do not appear to have had adverse effects to date on pulp and panel producers, this is due almost solely to market conditions and should not be a signal as to the true effect the BCAP program could have if new rules are not enacted.

William Perritt, Executive Editor of the Wood Biomass Market Report, said, "It appears the FSA is finding a deeper understanding of the possibly damaging cross-currents BCAP may have in wood markets. The recent draft rule at least makes an attempt to establish a wall between true wood biomass and the fiber sources more suited to higher and better use at both wood-based panel and pulp mills."

The Wood Biomass Market Report is published monthly. Yearly subscriptions are available now for $597 -- to order or for more information, please visit http://www.risi.com/woodbiomass.

RISI has also recently published a study on wood biomass policies in the United States and Europe entitled 2010 Wood Biomass Policy Review. For more information or to order this study, please visit http://www.risiinfo.com/biomasspolicy.

About RISI

RISI is the leading information provider for the global forest products industry. The company works with clients in the pulp and paper, wood products, timber, tissue, nonwovens, printing and publishing industries to help them make better decisions.

Headquartered in Boston (Bedford), Massachusetts, RISI operates offices in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland, Oregon; Sao Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville, Virginia. More information can be found at http://www.risi.com/.