The biodiesel industry fueled a 17 percent increase in net farm income for Iowa crop farmers and a 20 percent increase in net income for a crop farmer raising hogs in the Hawkeye State. The Iowa Renewable Fuels Association, Iowa Soybean Association, Iowa Corn Growers and Iowa Biodiesel Board hired Cardno ENTRIX Economist John Urbanchuk to determine just what the biodiesel industry means to Iowa farmers.
Urbanchuk says in 2012, nearly 72 percent of all biodiesel produced in Iowa was from soybean oil and that raised the price of soybeans by more than eight percent which in turn pushed the price of corn nine percent higher. The increased production of soybean meal and distillers grains benefitted Iowa livestock producers. Plus roughly 250 million pounds of animal fats were used by the biodiesel industry last year. As a result, the study says the net income from finished cattle increased more than $16 per head and net income from the average hog was more than $4 higher.
The entire study is available here: