Iowa event shows livestock farmers how biodiesel helps their bottom lines

DUBUQUE, Iowa - Biodiesel is known for powering vehicles across the country?but it also works for poultry and livestock farmers by powering their profitability.

That was the message today at Western Dubuque Biodiesel's plant, where soybean groups hosted a tour of the biodiesel facility and gave an economic presentation to members of the state livestock industry. The United Soybean Board, Iowa Biodiesel Board and Iowa Soybean Association hosted about 40 ag leaders to share information and answer questions on how biodiesel impacts the profitability of the livestock industry.

An increased demand for biodiesel also increases the demand for domestic soybeans to crush, growing the supply of soybean meal. This greater supply lowers the meal's price, which decreases the relative cost of it to poultry and livestock farmers.

That means in addition to soybean farmers, animal agriculture also benefits from biodiesel.

"Animal agriculture is the soybean farmer's No. 1 customer with 97 percent of soybean meal going to feed poultry and livestock," said Delbert Christensen, a soybean farmer from Audubon, Iowa and director on USB. "Biodiesel helps animal agriculture by creating demand for soybean oil, which helps lower the cost of animal feed and creates an additional market for animal fats."

Increased demand for biodiesel helps keep soybean meal prices competitive as demand for soybeans continues to rise globally.

"In the last five years, biodiesel has lowered soybean meal prices by at least $21 per ton," said Alan Weber, a National Biodiesel Board consultant and fellow farmer.

Biodiesel demand impacts more than meal costs for animal ag farmers, as animal fats and tallow can also be used to make biodiesel, adding value to their products.

For Iowa farmers, these meal savings and increased fat and tallow values really add up. Weber notes that in 2013 alone, pork farmers saved $60,802,700 and dairy and beef farmers saved $25,511,700 respectively. Those savings help strengthen animal agriculture in Iowa.

In addition, glycerin, a byproduct of the biodiesel manufacturing process, can go back into farmers' feed troughs as an additional energy source, creating a full circle.

Soybeans act as a common thread between the biodiesel and animal ag industries to fuel profitability in new and exciting ways.

"It's important for pork, poultry and other livestock farmers to understand the connection between biodiesel and increased profitability," said Christensen. "Soybean and animal farmers may wear different hats, but we all benefit from biodiesel."

The Iowa Biodiesel Board is a state trade association representing the biodiesel industry.

ANKENY, Iowa -The Environmental Protection Agency today announced its long-awaited proposed renewable fuel volumes under the federal Renewable Fuel Standard program. In biodiesel's primary RFS category, "biomass-based diesel," EPA has proposed 1.63 billion gallons in 2014, with gradual growth of about 100 million gallons per year to a standard of 1.9 billion gallons in 2017. Growth is also planned for the Advanced Biofuel category, which biodiesel also qualifies for. It is scheduled to be finalized in November. Grant Kimberley, executive director of the Iowa Biodiesel Board, issued the following statement:

"As the top biodiesel-producing state, we are enormously relieved the biodiesel industry's long limbo is almost over. Although the prolonged uncertainty strained our producers, we seem to be headed back on course for the original intent of the RFS.

EPA's proposal marks a significant increase for biodiesel volumes from their original proposal in 2013, which would have held the biodiesel standard flat at 1.28 billion gallons through 2015. Although the proposed volumes in later years are lower than the reasonable increases we had requested, and we look forward to opportunities for greater growth, these volumes still represent advancement. We are grateful to EPA for hearing us, and adjusting the volumes to promote steady growth in renewable fuel rather than abruptly reversing course. We also appreciate USDA's support in this effort. Further, having four years of known volumes is a huge step towards eliminating the disruptive uncertainty that has made business planning and investments difficult in Iowa. We sincerely hope our industry will not have to endure this under the RFS again."

Biodiesel is a top success story of the RFS, and our producers are eager to move forward with diversifying America's energy supply, boosting economic development, cleaning the air and reducing dependence on foreign oil."

The Iowa Biodiesel Board is a nonpartisan state trade association representing the biodiesel industry.

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WASHINGTON, D.C. - Several Iowans, including leaders of the Iowa Biodiesel Board and Iowa Soybean Association, are in the nation's capital today drumming up support for the biodiesel tax incentive.

The National Biodiesel Board organized a Washington, D.C. Fly-in to lobby for reinstatement of the $1-per-gallon biodiesel blenders tax credit, which expired on Dec. 31, 2013. The U.S. House overwhelmingly passed a package of tax incentives retroactively for 2014 on Wednesday night that includes the credit and other deductions that would benefit farmers and Iowa's economy.

The measure now moves to the Senate. NBB officials say if the one-year package passes, any 2015 discussions will be punted to next year.

Biodiesel supporters say the fly-in couldn't have come at a better time to help ensure passage. State soybean leaders and biodiesel advocates met with their U.S. senators and representatives or key aids to explain why the biodiesel credit is needed, along with other provisions in the bill.

"We had good meetings. Everyone is supportive," said Grant Kimberley, IBB executive director. "While we were hoping for a multi-year extension, something is better than nothing. But there's still uncertainty going forward.

This is the fourth time in the last six years the credit has expired for America's Advanced Biofuel.

"Federal policy is important to compete in an established industry," he said. "Otherwise, it's hard to make investments and grow."

Kimberley, Karey Claghorn, ISA chief operating officer and T.J. Page of the Iowa Renewable Fuels Association led the Iowa delegation. Others include Bill Horan, Jeff Johannesmeyer and Denny Mauser of Western Iowa Energy and Tom Brooks of Western Dubuque Biodiesel.

Even though Iowa lawmakers support renewable fuels and agriculture, Kimberley said it's important to thank them for their support and arm them with information so they can talk to colleagues about why the credit is important. Recently elected lawmakers were sent letters on the topic, he said.

"With the uncertainty of the RFS (Renewable Fuels Standard) and low commodity prices, it's absolutely critical Congress moves forward with the extenders bill to help biodiesel continue to diversify the nation's energy supply and provide economic benefits," Kimberley said. "We do know that Iowa biodiesel plants aren't running at capacity and some have reduced staff. We're not maximizing our potential."

The Iowa Biodiesel Board is a nonpartisan state trade association representing the biodiesel industry.