USDA BioPreferred Program Funding Overview

Program Overview

The BioPreferred Program promotes the development, procurement, and use of biobased products across the U.S. economy. By expanding markets for products derived from renewable agricultural and forestry resources, the program supports economic development, job creation, and improved environmental performance.

BioPreferred influences both federal purchasing requirements and voluntary market adoption, shaping demand for biobased products across government and commercial sectors.

How the BioPreferred Program Works

The BioPreferred Program operates through two primary mechanisms:

• Mandatory federal purchasing requirements
• Voluntary USDA biobased product labeling

Together, these mechanisms are intended to stimulate market demand, improve product visibility, and support manufacturers producing qualifying biobased products.

Mandatory Federal Purchasing Requirements

Federal agencies and their contractors are required under federal law, the Federal Acquisition Regulation (FAR), and Executive Orders to purchase biobased products in categories designated by USDA, provided such products meet performance and availability requirements.

USDA has designated 139 product categories subject to mandatory purchasing requirements, each with a specified minimum biobased content level. Categories include items such as cleaners, lubricants, carpeting, insulation, and construction materials.

USDA provides procurement tools and resources, including the BioPreferred Catalog, to assist agencies and suppliers in meeting purchasing requirements.

Voluntary Biobased Product Labeling

The BioPreferred Program also includes a voluntary product labeling initiative that allows manufacturers to certify and label products with verified biobased content.

Products meeting program requirements may display the USDA Certified Biobased Product label, which communicates the percentage of biobased content and supports informed purchasing decisions by government and commercial buyers.

What Qualifies as a Biobased Product

A biobased product is defined as a commercial or industrial product (other than food or feed) that is composed, in whole or in significant part, of renewable biological materials. These materials may include agricultural crops, forestry materials, renewable chemicals, or intermediate feedstocks.

Funding and Financial Support Context

The BioPreferred Program does not provide direct grants or loans. However, participation may complement other USDA Rural Development loan and grant programs that support manufacturing, commercialization, and market development for biobased products.

Evaluating how BioPreferred participation aligns with broader USDA funding opportunities is often an important consideration for project sponsors.

Eligible Applicants

Eligible participants include U.S.-based manufacturers and suppliers seeking federal purchasing designation or voluntary biobased product certification. Products and entities from foreign adversary countries are excluded.

For official program requirements and regulatory details, refer to:
USDA BioPreferred Program

How LEC Partners Supports BioPreferred Program Participants

LEC Partners supports companies and project sponsors evaluating how the BioPreferred Program fits within broader market development, funding, and commercialization strategies for biobased products.

• Assess program fit and biobased product eligibility
• Evaluate market positioning and procurement pathways
• Support technical and market feasibility assessments
• Align BioPreferred participation with applicable USDA funding programs

Our work is grounded in independent analysis and real-world experience across the bioeconomy, biochemicals, and biobased materials sectors.

Questions We Commonly Address

Does the BioPreferred Program provide grants or loans?
No. The program itself does not provide direct financial assistance, but participation may complement other USDA Rural Development funding programs.

Who benefits most from BioPreferred participation?
Manufacturers of qualifying biobased products seeking access to federal procurement markets or improved product differentiation.

Is certification required?
Certification is voluntary but required to use the USDA Certified Biobased Product label and to be listed in certain federal procurement tools.

Further Reading