News

Biodiesel, renewable diesel return value to farmers facing rising costs

A growing biodiesel and renewable diesel industry adds value to soybean oil, ultimately benefiting the farmers raising the crop.

Dave Walton raises soybeans, corn, alfalfa, and mixed hay and pastures in Wilton, Iowa.

“It brings a lot of value back to the farmgate for us,” he says. “It adds about 17 percent to the price of soybeans. On today’s market, that’s almost $1.45-$1.50 per bushel that’s directly to biodiesel.”

And, he says the return is especially critical as farmers continue to face rising production costs.

“That is sometimes the difference between profit and loss in some years and could be again this year with our higher input prices and land prices going up. We just renegotiated some rents and almost all of my rents are going up next year. Anytime we can put value back to the farmgate is a bonus for us.”

Walton also raises beef cattle, sheep, and cow-calf pairs and runs a small feedlot.

Audio: Dave Walton