Iowa On-Farm Biodiesel Program Funding Triples

Cindy Zimmerman

Funding has more than tripled for Iowa’s new statewide On-Farm Biodiesel Credit Program to give back to farmers using biodiesel on their farms.

The program, launched in August by the Iowa Renewable Fuels Association, refunds farmers up to 50 cents per gallon for buying biodiesel blends. Originally funded at $10,000, the Iowa Soybean Association and Iowa Biodiesel Board have joined as partners, providing another $10,000 to the program. In-state biodiesel producers Western Iowa Energy, Western Dubuque Biodiesel and Chevron Renewable Energy Group have each contributed $5,000, bringing total available funds to $35,000.

Under the program, farmers can earn 25 cents-per-gallon for filling up with B11 (11 percent biodiesel) and 50 cents-per-gallon with B20 (20 percent biodiesel), up to a maximum credit of $500.

To be eligible, farmers must purchase blends for an on-farm tank in Iowa actively used for an agricultural operation.
The groups note that the majority of farm equipment manufacturers support up to B20 biodiesel blends while some manufacturers, such as John Deere and Caterpillar, support up to B100 depending on the model year of the equipment.

Program funding is awarded on a first-come, first-served basis. Program eligibility and rules can be found here.

Biodiesel, Farming