Biodiesel production 'has increased revenue in Iowa'

Biodiesel production boosts revenue for Iowa’s crop and livestock farmers, it has been revealed.

The findings of the study were revealed during the 7th Annual Renewable Fuels Summit by John Urbanchuk.

Mr Urbanchuk, an economist with Cardno Entrix, conducted the study and was supported by the Iowa Renewable Fuels Association (IRFA), Iowa Soybean Association (ISA), Iowa Corn Growers Association (ICGA), and Iowa Biodiesel Board (IBB).

Not only does the farmers' use of biodiesel provide them with their money, it is also beneficial for Iowa's economy as a whole, the study found.

Indeed, biodiesel producers add value to products grown specifically in Iowa.

During the unveiling of the study, Urbanchuk said: "Biodiesel producers are part of a manufacturing sector that adds substantial value to agriculture commodities produced in Iowa and makes a significant contribution to Iowa agriculture."

Specifically, increased biodiesel production raises both soybean and corn prices in the state, which in turn boosts revenue for Iowa crop farmers which grow these commodities.

"Since increased crush demand for soybeans also increases production of soybean meal, an increase in biodiesel use and soybean oil demand will reduce soybean meal prices to the benefit of Iowa’s livestock producers," he explained.

According to Mr Urbanchuk, the increased demand for soybeans put the cost up by a whopping eight per cent in 2012, while the cost of corn also went up by more than five per cent.

Overall, it is thought that 72 per cent of all biodiesel in Iowa was produced from soybean oil in 2012.

"The bottom line is that biodiesel has a net positive impact on finishing hogs and cattle in Iowa," Mr Urbanchuk commented.