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Ohio soybean producers may soon experience a resurgence of local bio-based fuel markets following the introduction of new state legislation backed by agricultural industry leaders. The Ohio Soybean Association (OSA) has formally voiced its support for House Bill 1036, a legislative move designed to restore biomass-based diesel production to the state through a targeted production tax credit.
Introduced by State Representatives Bob Peterson and Roy Klopfenstein, the bill seeks to authorize a nonrefundable tax credit for the manufacturing of biodiesel and renewable diesel within Ohio's borders. OSA collaborated with the sponsors to ensure the measure maximizes benefits for soy-derived biofuels, reopening market pathways for Ohio soybeans that have been largely absent since local production ceased in 2022.
'This bill is a dual-purpose solution,' stated OSA President Bennett Musselman. 'It helps farmers establish new markets for their crops while enhancing the broader U.S. energy sector to mitigate the volatility currently seen in the diesel market.' The legislative push comes as commercial transport faces high fuel costs, with Ohio's average diesel prices hovering near $6.29 per gallon, straining logistics and agricultural operations. Supporters look to Missouri as a successful case study, where wholesale B50 fuel blends have recently traded at rates more than $2 per gallon cheaper than conventional diesel.
State officials emphasize that recent infrastructure expansions have prepared the industry for this comeback. Rep. Klopfenstein noted that significant investments in crush capacity by major firms such as Cargill and Louis Dreyfus Company ensure a steady supply of soybean oil is available for refining. Beyond the agricultural benefits, the economic implications are substantial. An analysis by S&P Global suggests that a single 60-million-gallon biodiesel plant could generate $5 billion in cumulative economic output by 2040, contributing an average of $362 million annually to the state's economy.
Rep. Peterson added that the bill's impact extends to the trucking, rail, and marine sectors, potentially lowering costs for all Ohio citizens. House Bill 1036 is currently assigned to the 136th General Assembly awaiting committee referral. If passed, it will amend the Ohio Revised Code to provide the necessary incentives for local processors to convert Ohio-grown soy oil into commercial-grade fuel.
Source: Ohio Ag Net - Ohio's Country Journal