Biodiesel producers aren’t the only ones who are being hit by the loss of the federal $1-a-gallon tax incentive.
This story from Agriculture Online says farmers and consumers are also being hurt:
Ohio Soybean Association president Jeff Wuebker estimates that failure to renew the tax credit, which expired at the end of 2009, will cost him about $12.50 an acre on his soybean crop. That’s the number he comes up with when he multiplies a 50-bushel yield by the 25-cents-a-bushel estimated increase in soybean value from its use as a feedstock for biodiesel fuel.
“If we don’t have something to use this additional oil we have, it could get worse than 25 cents,” said Wuebker, who farms 1,300 crops acres and farrows 1,800 sows with his brother, Alan. Their diversified western Ohio farm also sells wheat, alfalfa hay, straw and feeds about 60 dairy steers.
The loss of the tax credit could also lead to higher fuel costs for all of us, another 25¢ to 35¢ a gallon, according to one Department of Energy estimate, [another Ohio farmer, Rob Joslin, who recently became president of the American Soybean Association] said.
As Joslin puts it, with the Senate not renewing the credit late last year, “we’ve disrupted the supply chain. We’ve set a whole series of dominoes in place that are detrimental to our industry and our country.”
We’ll keep an eye on what the Senate does when it comes back in session. Lot of people hanging in the balance. Let’s hope someone gets the message.