Funding for On-Farm Biodiesel Credit Program Tops $35,000
September 12, 2022
(ANKENY, Iowa) – As the fall harvest grows closer, funding has more than tripled for a new statewide On-Farm Biodiesel Credit Program to give back to farmers using biodiesel on their farms.
The program, launched in August by the Iowa Renewable Fuels Association, refunds farmers up to 50 cents per gallon for buying biodiesel blends. Originally funded at $10,000, the Iowa Soybean Association and Iowa Biodiesel Board have joined as partners, providing another $10,000 to the program. In-state biodiesel producers Western Iowa Energy, Western Dubuque Biodiesel and Chevron Renewable Energy Group have each contributed $5,000, bringing total available funds to $35,000.
Under the program, farmers can earn 25 cents-per-gallon for filling up with B11 (11 percent biodiesel) and 50 cents-per-gallon with B20 (20 percent biodiesel), up to a maximum credit of $500.
“Biodiesel is one of the most successful products in history when it comes to adding value to soybeans, so it makes sense to encourage Iowa farmers to try higher blend levels on their own farms,” said Grant Kimberley, IBB executive director and ISA sr. director of market development, who also helps run his family farm in Maxwell, Iowa. “This is a great way to remind farmers to close that circle by contributing to on-farm profitability while improving national energy security and reducing carbon.”
To be eligible, farmers must purchase blends for an on-farm tank in Iowa actively used for an agricultural operation. Program funding is awarded on a first-come, first-served basis.
“We welcome the generosity of additional partners for the On-Farm Biodiesel Credit program. It underscores the strong support both for our state’s farmers and for biodiesel,” said Lisa Coffelt, IRFA marketing director. “Biodiesel not only adds value to soybean oil, but also corn oil and animal fats, so it’s a win for agriculture any way you look at it.”
The groups noted that most farm equipment manufacturers, such as Case IH, support B20 biodiesel blends. Some manufacturers, such as John Deere and Caterpillar, support up to B100 depending on the model year of the equipment.
Program eligibility and rules can be found at: https://iowarfa.org/iowa-on-farm-biodiesel-credit-program.
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About the Iowa Renewable Fuels Association
IRFA represents the state’s liquid renewable fuels industry and works to foster its growth. Iowa is the nation’s leader in renewable fuels production with 42 ethanol refineries capable of producing 4.5 billion gallons annually – including 34 million gallons of annual cellulosic ethanol production capacity – and 11 biodiesel facilities with the capacity to produce 410 million gallons annually. For more information, visit the Iowa Renewable Fuels Association visit IowaRFA.org.
About the Iowa Biodiesel Board
The IBB represents the biodiesel industry in Iowa, from the farmers who grow the feedstock, to production, through distribution to end users. The IBB works to promote the commercial and economic success of biodiesel in Iowa. For more information, visit IowaBiodiesel.org.
About the Iowa Soybean Association
ISA is Driven To Deliver market demand, production research, information and insights and regulatory action benefiting Iowa's 40,000 soybean farmers and the industry. For more information, visit iasoybeans.com.
Funded by the soybean checkoff.
For More Information:
Monte Shaw/IRFA, 515-252-6249
Brock Johnston/ISA 515-334-1058
Jenna Higgins Rose/IBB 573-808-0815