Preferences Drive Biobased Government Procurement

Preferences Drive Biobased Government Procurement

The growing use of biobased products by the federal government reached a major milestone with U.S. Secretary of Agriculture Ann M. Venemans announcement of the final rule implementing a program of preferred procurement. According to independent research commissioned by the United Soybean Board (USB), the government is poised for greater use of biobased products that offer benefits to the U.S. environment, energy security and the economy. Because of these attributes, Section 9002 of the 2002 Farm Bill authorized the government-wide biobased procurement initiative led by the U.S. Department of Agriculture (USDA).

As USDA pointed out in announcing the new rule, many government agencies--ranging from USDA, to the National Park Service to a range of military installations and the U.S. Postal Service--are already using biobased products successfully, said USB New Uses Chair Todd Allen. This rule will help to build on that success and increase awareness about these products both inside and outside of government.

An independent research firm, NuStats, conducted a survey for USB last summer. The research included interviews with federal procurement officials and found that other federal purchasing preferences for biobased products, such as soy ink, have played a large role in the increased use of these products by government agencies. Additionally, improved quality, cost and supply of biobased products--along with more education and outreach -- have contributed to increased use in the federal sector.

The USB has funded years of research and testing on new uses for soy-based bioproducts as well as educational outreach to government procurement officials. Soybeans are one of the leading ingredients in a wide array of biobased products--including fuels, plastics, engine oil, adhesives, lubricants, solvents, inks, carpet backing and many others--made from natural, renewable, domestically produced agricultural products.

We expect this new program to increase demand for U.S. agricultural commodities, thus boosting farm income and stimulating business and new jobs in the United States, Allen said. In addition, greater use of biobased products can help to reduce our dependence on foreign sources of oil, and they are friendlier to the environment as well as to those who use them.

The rule, published in the January 11 Federal Register, establishes the process that USDA will use to designate products eligible for the Federal Biobased Products Preferred Procurement Program. The program creates preferences across the entire federal government to purchase biobased products, unless it is unreasonable to do so based on price, availability and performance. During the next three years, USDA will issue a series of proposed rules that will designate specific items for program eligibility.

The United Soybean Board is composed of 64 U.S. soybean farmers appointed by the Secretary of Agriculture to invest soybean checkoff funds. The soybean checkoff is a farmer-supported marketing and research fund collected on each bushel of U.S. soybeans sold. The USB invests these funds on behalf of the 600,000 U.S. soybean farmers in activities specifically designed to increase the global utilization of U.S. soybeans and to reduce production costs. Checkoff-funded investment areas include human and animal health and nutrition, research and development of new uses, and research to improve soybean composition and production efficiencies.

The USB has produced an information kit about biobased products designed for federal purchasing decision makers, and a Soy Products Guide (which lists all soy products that are available) that is available on the USB Web site at http://www.unitedsoybean.org