American soybean growers have netted an extra $2.5 billion over the past four years, thanks to demand for soybean-based biodiesel.
This story from Feedtuffs.com says a new United Soybean Board and soybean checkoff-funded study also found that biodiesel added 25 cents to the price of a bushel of soybeans:
Because the price of petroleum diesel has such a large influence on the price of biodiesel and soybean oil, the study asserts that the biodiesel industry has essentially created a new floor for soybean oil prices.
Additionally, the study found that higher demand for soybean oil led to an increased supply of soybean meal, resulting in meal prices dropping by $19 to $45 per ton.
“Any lowering of the price of inputs for the animal agriculture industry is a plus,” Bainbridge said. “The swine and dairy industries have had a tough time lately. This is a benefit for them. Every little bit helps in the poultry and livestock industries as far as decreasing their costs. And this demonstrates how biodiesel demand can have a positive impact on this important aspect of our food supply.”
You can read the results of the study at the USB Web site.