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A soybean farmer from northeast Nebraska says biodiesel and renewable diesel have become a lifeline for farmers facing high costs and global competition, as industry leaders gather this week for the annual Clean Fuels Alliance America conference.
Greg Anderson, of the Nebraska Soybean Board, said the expanding use of biodiesel and renewable diesel is boosting domestic demand at a time when farmers are grappling with rising input costs and uncertainty over exports.
"Biodiesel and renewable diesel are truly essential for agricultural security. We're facing high production costs again this year, and we're also dealing with trade uncertainty and export competition from South America for our soybean crop. So we need domestic demand, and biodiesel and renewable diesel provide that," Anderson explained.
The conference brings together fuel producers, suppliers and feedstock farmers from across the biodiesel and renewable diesel value chain. Anderson noted that one of the industry's biggest impacts has been the rapid growth in demand for soybean oil, driven by fuel production.
Pointing to the expansion of soybean crushing facilities in Nebraska and neighbouring states, Anderson said: "This sector is now consuming more than a billion pounds of soybean oil a month to produce this fuel. That's a huge number."
Anderson added that technological advances and wider acceptance of higher-blend biodiesel by equipment manufacturers and other sectors are accelerating this demand nationwide.
He continued: "We're going to need every bit of feedstock we can get to meet the needs of this growing market. That's what's supporting domestic demand, which is critically important in this era."
Industry leaders at the conference are also expected to discuss federal renewable fuel policy, including refinery exemptions and blending obligations, which Anderson said could affect soybean prices and fuel demand if not fully implemented.
Source: Rural Radio