WASHINGTON, D.C. (RFD-TV News) — Diesel prices continue to put pressure on farm country.
A bipartisan group of lawmakers wants to keep a tax break in place for small biodiesel producers. The credit is set to expire at the end of this year, but a new Senate bill would extend it through 2029.
Small producers can receive a 20-cent-per-gallon credit on their first 15 million gallons of qualifying biodiesel. Supporters say an extension would give small plants more certainty to continue producing domestic fuel while supporting farmers who supply the crops used to make it.
With the new year just a few months away, biofuel producers are looking for stability in federal policy. Kurt Kovarik with Clean Fuels Alliance says more certainty is something the entire agricultural community could benefit from.
“The industry needs that certainty to be able to respond to the marketplace. When we saw nearly a week when this rumor was on the street that the volume was going to be double, soybean oil went down, RIN values went down. It creates enormous uncertainty in the marketplace. Our message to the administration and policymakers is to send the signals for growth, put us on a path of certainty that the industry can respond to, and here’s what you get for it. Look at what economic activity we’ve had since March, when this was announced. AGP sent the first unit train of soybean oil to the West Coast, presumably for biofuel production. ADM announced an expansion at their existing crush plants.”
CHS recently announced a new soybean crush facility in Wisconsin. Company leaders hope to have it operating sometime in 2028.
