USDA BioPreferred Program: Opportunities for Biobased Products
USDA BioPreferred Program
Administering Agency: USDA Rural Business-Cooperative Service (RBCS), Rural Development
Program Focus: Expanding the development, purchase, and use of biobased products
Primary Market Mechanisms: Federal Purchasing Requirements and USDA Biobased Product Certification
Eligible Products: Qualifying commercial and industrial biobased products, intermediate ingredients, and feedstocks
The USDA BioPreferred Program is designed to increase the development, purchase, and use of biobased products while creating new markets for agricultural commodities and supporting the broader U.S. bioeconomy.
Administered by USDA’s Rural Business-Cooperative Service within the Rural Development mission area, BioPreferred connects biobased product manufacturers with market opportunities through two primary mechanisms: federal purchasing requirements and voluntary certification through the USDA Certified Biobased Product label.
For companies developing biochemicals, bioplastics, renewable materials, and other qualifying biobased products, the program can provide something different from traditional federal grant funding: a pathway toward greater market recognition and access to federal procurement opportunities.
What Is the USDA BioPreferred Program?
BioPreferred was established to encourage greater use of products made from renewable biological resources rather than relying exclusively on conventional petroleum-derived materials.
The program’s goals include:
- Increasing the development, purchase, and use of biobased products
- Creating new markets for agricultural commodities
- Supporting economic development and job creation
- Supporting rural communities
- Encouraging innovation
- Contributing to the growth of the U.S. bioeconomy
For producers of qualifying products, these objectives translate into two important commercial pathways: participation in the federal biobased purchasing market and certification of qualifying products.
Federal Purchasing Requirements for Biobased Products
One of the most significant components of the USDA BioPreferred Program is the federal purchasing preference for designated biobased products.
Federal agencies and their contractors are required under applicable Farm Bill provisions to give purchasing preference to qualifying biobased products when procuring designated product categories.
USDA supports this procurement framework by educating federal procurement and contracting professionals, monitoring solicitations for compliance, and maintaining an online catalog of qualified biobased product options.
For manufacturers, this creates an important distinction between BioPreferred and a conventional financial assistance program. The opportunity is not simply access to federal dollars for project development. Instead, BioPreferred can help create institutional demand for qualifying commercial products.
USDA Certified Biobased Product Label
The second major component of BioPreferred is the voluntary USDA Certified Biobased Product certification and labeling program.
Companies can apply to have eligible products evaluated for their biobased content. Products that meet applicable USDA requirements may qualify to display the USDA Certified Biobased Product label.
The label provides buyers with third-party verification of a product’s biobased content claims. This can help manufacturers communicate product attributes more clearly while reducing uncertainty for purchasers evaluating competing environmental and biobased-content claims.
Certified products may also be included in USDA’s online catalog of USDA Certified Biobased Products.
What Products May Qualify for the USDA BioPreferred Program?
The program applies to qualifying commercial and industrial products made wholly or significantly from biological resources.
Eligible biobased products may include products containing:
- Renewable domestic agricultural materials
- Renewable chemicals
- Forestry materials
- Biological products
- Intermediate ingredients
- Biobased feedstocks
Forestry-derived products may also qualify when they meet applicable biobased-content requirements.
The program information provided specifically excludes motor vehicle fuels, heating oils, and electricity from the BioPreferred definition of a biobased product.
Why BioPreferred Matters for Biobased Product Manufacturers
Developing a technically viable biobased product is only part of the commercialization challenge.
Manufacturers also need customers who understand the product, credible methods for communicating biobased content, appropriate product positioning, competitive economics, and reliable production and feedstock strategies.
BioPreferred can address part of that commercialization challenge by creating a recognized framework for identifying biobased products and encouraging federal purchasing of qualifying products.
For a manufacturer, certification may therefore become one component of a broader market-entry strategy rather than simply a labeling exercise.
Potential Opportunities Across the Bioeconomy
The broad definition of eligible biobased products makes BioPreferred relevant to companies working across multiple segments of the bioeconomy.
Depending on the product and applicable USDA requirements, relevant areas may include:
- Biobased chemicals
- Bioplastics and polymers
- Renewable industrial materials
- Biobased lubricants
- Cleaning and maintenance products
- Packaging materials
- Construction and building materials
- Agricultural materials
- Forestry-derived products
- Intermediate biobased ingredients and feedstocks
Companies should evaluate the requirements applicable to their specific product rather than assuming that biological origin alone establishes eligibility.
From Biobased Technology to Commercial Product
BioPreferred becomes most relevant when a technology is moving beyond development and toward a product that customers can actually purchase.
At that point, several practical questions become important:
- Does the product meet applicable biobased-content requirements?
- Can the manufacturer consistently produce the required product specification?
- Are feedstocks available at the required quality, volume, and cost?
- How does the product perform against incumbent alternatives?
- Can production economics support competitive market pricing?
- Which federal or commercial markets are appropriate targets?
- What claims can be substantiated through certification and testing?
- Can production scale with market demand?
These questions connect product certification with the larger commercialization process. A label can help communicate verified biobased content, but long-term market success still depends on product performance, manufacturing reliability, economics, and customer demand.
How LEC Partners Supports Biobased Product Commercialization
LEC Partners works across the bioeconomy with technology developers, manufacturers, investors, project sponsors, and organizations commercializing products derived from renewable feedstocks.
Our network of more than 150 subject-matter experts includes experience in biochemicals, bioplastics, fermentation, renewable feedstocks, process technology, scale-up, market development, due diligence, and project implementation.
For companies evaluating BioPreferred opportunities or preparing a biobased product for commercialization, support may include:
- Biobased product and technology assessment
- Feedstock availability and supply chain analysis
- Process and manufacturing evaluation
- Scale-up planning
- Technical and commercial due diligence
- Market and competitive analysis
- Techno-economic assessment
- Commercialization strategy
- Project feasibility
- Regulatory and certification support
The objective is to connect technical performance with commercial reality so that companies understand not only whether a biobased product can be manufactured, but whether it has a credible pathway to market.
Frequently Asked Questions
What is the USDA BioPreferred Program?
The USDA BioPreferred Program promotes the development, purchase, and use of biobased products. It uses federal purchasing requirements and voluntary product certification to help expand markets for qualifying biobased products.
Is the USDA BioPreferred Program a grant program?
The program information provided does not identify BioPreferred as a direct grant opportunity. Its primary mechanisms are federal purchasing preferences and the USDA Certified Biobased Product certification and labeling program.
What is the USDA Certified Biobased Product label?
The label provides verification that a qualifying product meets USDA requirements related to its biobased content, helping buyers evaluate biobased-content claims.
What types of products can qualify?
Qualifying commercial and industrial products may be made wholly or significantly from biological resources, including renewable agricultural materials, renewable chemicals, forestry materials, intermediate ingredients, and feedstocks.
Are biofuels eligible for the BioPreferred Program?
The program definition provided excludes motor vehicle fuels, heating oils, and electricity from the definition of a BioPreferred biobased product.
How does BioPreferred help manufacturers?
The program can help qualifying manufacturers through federal purchasing preferences, third-party certification of biobased content, use of the USDA Certified Biobased Product label, and inclusion of certified products in USDA’s online catalog.
Talk With an Expert
LEC Partners brings together more than 150 specialists across biochemicals, bioplastics, fermentation, renewable feedstocks, process technology, scale-up, due diligence, and project development. We help organizations evaluate the technical and commercial considerations involved in moving biobased technologies from development toward manufacturing and market adoption.
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