Biodiesel, renewable diesel fueling new markets for soybean farmers

Expanding biofuels markets are creating new opportunities for soybean farmers.

Nebraska farmer Greg Anderson says additional soy crushing facilities across the Midwest will help meet demand for renewable diesel and biodiesel. “People are now crushing beans for the oil. That’s never happened before in my lifetime as I recall and keeping the value here and serving those markets is going to be very important to soybean farmers’ profitability.”

He tells Brownfield it also adds value to his product. “I think we’ll see this as a trend not only in Nebraska but in other states around where we’re crushing more beans domestically. We’re keeping the value here rather than shipping the whole bean across the pond and all that value of the soybean oil and meal is gone.”

Indiana farmer Matt Chapman tells Brownfield he recently visited a renewable diesel facility in California where that fuel could have a 25 percent share of the market by 2025 from tax credits. “By 2030, they want to have 100 percent of saturation of renewable diesel in the state of California.  And what that means for Indiana farmers is half of the soybeans produced in the United States will have to go to that market to service that demand.”

He says events like the Commodity Classic help soybean growers explore new opportunities. “Here we try to work on that strategy of how our products fit in the direction of the world is going and how we can help the world be sustainable with these new fuel products. Our soybeans naturally fit that mold and check all the boxes they need to be successful.”

Anderson and Chapman spoke with Brownfield at the 2022 Commodity Classic.

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