biodiesel fuel pump United Soybean Board

Ag groups ask Congress to extend biodiesel tax credit

Congress can help mitigate mounting rural economic crisis by extending biodiesel tax incentive that's up for immediate consideration.

Thirteen trade groups representing farmers, rural lenders, crop and bio-based oil producers and biodiesel producers wrote leaders of the House and Senate asking them to take action on bipartisan legislation to extend the biodiesel tax incentive.

The groups include the Agricultural Retailers Assn., American Farm Bureau Federation, American Soybean Assn., CoBank, Corn Refiners Assn., Farm Credit Council, National Biodiesel Board (NBB), National Council of Farmer Cooperatives, National Farmers Union, National Oilseed Processors Assn., National Renderers Assn. (NRA), National Sorghum Producers and U.S. Canola Assn.

“America’s farmers and rural communities are facing a mounting economic threat. With your leadership, Congress can help mitigate the crisis by taking immediate action on a policy that enjoys bipartisan, bicameral support. We are writing today to ask you to renew and extend the biodiesel tax incentive at the earliest opportunity,” the letter stated.

“Senators and representatives from both sides of the aisle and across the country agree that the biodiesel tax incentive should be renewed,” the letter continued. “We ask you to bring an extension of the biodiesel tax incentive up for immediate consideration in Congress.”

Kurt Kovarik, NBB vice president of federal affairs, added, “Income for America’s farmers is falling, and the impact is beginning to be felt in other sectors of the rural economy. Biodiesel production adds value to oilseed crops and recycled oils, providing one bright spot for the agriculture sector. Congress can take rapid action to renew the biodiesel tax incentive – a policy that enjoys broad bipartisan support – to help U.S. biodiesel producers continue growing.”

Approximately 28% of feedstock to produce biodiesel comes from these oils and fats, NRA said in a statement. Renderers reclaim used cooking oil and recycle animal leftovers (after processing) into valuable ingredients to produce biofuels and hundreds of other products. Biodiesel is a sustainable, clean-burning diesel replacement that can be used in existing diesel engines without modification.

“Extending the biodiesel tax incentive is crucial to encourage continued and growing biodiesel production,” NRA president Nancy Foster said. “By recycling used cooking oils and leftover animal byproducts into new ingredients for biodiesel, rendering’s sustainability contributes to the environmental benefits of this valuable fuel.”

Biodiesel is made from an increasingly diverse mix of resources such as recycled cooking oil, soybean oil and animal fats and was the nation’s first domestically produced, commercially available advanced biofuel.

NBB is the U.S. trade association representing the entire biodiesel value chain, including producers, feedstock suppliers and fuel distributors, as well as the U.S. renewable diesel industry.

TAGS: Policy
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