The United States Department of Agriculture (USDA) has committed funds of $98.6m to finance the development of advanced bio-fuels.

In addition, the government has called in for applications from eligible fuel producers to secure funds through USDA Rural Development’s Bioenergy Program.

Agriculture Secretary Tom Vilsack noted that the funds allotted at the time of budget uncertainty represent the government’s efforts in furthering its rural economy.

"By helping producers to support and expand the production of advanced biofuels, USDA is ensuring that Rural America is a key component of President Obama’s ‘all-of-the-above’ energy strategy to reduce the Nation’s reliance on foreign oil," added Vilsack.

The funds will be granted depending upon the amount of biofuel produced from renewable biomass that excludes corn kernel starch. Crop residue; animal, food and yard waste; vegetable oils; and animal fat eligible are qualified as eligible feedstocks.

The applicants are expected to submit the proposals for third and fourth quarter fiscal year 2013 production by 11 July 2013.