Panel Industry Sees Threat from Biomass Program

Washington, DC, January 28, 2010--The U.S. Office of Management and Budget recently approved $514 million in subsidies under the Department of Agriculture’s Biomass Crop Assistance Program (BCAP).

The program, according to a wood panel industry report, will divert the U.S. wood fiber supply from its current use in higher value composite wood products such as furniture and cabinets to instead be used as fuel.

The furniture industry also sees this as a direct threat to all industries that rely on composite panel products, such as the flooring industry, and says it will hurt the U.S. economy as well as the environment.

The industry said the program has been rushed through without any consideration of its unintended consequences, which include environmental considerations as well as loss of jobs.