Biodiesel producers in Missouri might be feeling like they’re the victims of insult added to injury. Not only have they lost the federal $1-a-gallon federal tax credit, but now, the St. Joseph News-Press reports they are the latest victims of state budget cuts:
Gov. Jay Nixon proposed reducing $4 million, or 16 percent, of the state subsidies for biodiesel plants as part of $45 million in budget cuts.
The Missouri Soybean Association said cuts to the producer’s incentive fund will make it harder for Missouri to capitalize on a national biodiesel standard, which mandates increased biodiesel use beginning July 1.
“It definitely is concerning,” said J.P. Dunn of the Missouri Soybean Association. “We could have an edge if we are fully funded.”
Ironically, Missouri is home to the headquarters of the National Biodiesel Board. The announcement came as the state was preparing to celebrate Earth Day.