(Photo Credit: Joseph L. Murphy/Iowa Soybean Association)
Soybean Farmers Applaud Passage of Fuel Tax Incentive
June 4, 2020
Statement Courtesy of Iowa Soybean Association President Tim Bardole of Rippey, Iowa
“With overwhelming support, the Iowa House and Senate this week voted to extend the fuel tax incentive for 11 percent biodiesel (B11) or higher blends. This is welcomed news for Iowa soybean farmers. Approval is a critical step toward expanding biodiesel demand, of which soybean oil is a primary feedstock, and injecting some certainty into the struggling soybean market. We appreciate both chambers’ leadership for prioritizing the measure upon return this week and the entire Iowa legislature for the overwhelming support to approve the fuel tax incentive. Without legislative action, the highly successful policy would have sunset later this month.
“The incentive offers a 3-cent per gallon tax reduction for blends of diesel containing at least 11 percent biodiesel. Coupled with rural economic benefits, this legislation strengthens a vital domestic market for Iowa’s farmers and expands biodiesel availability across the state. It brings much-needed market stability to farmers adversely impacted by ongoing trade disputes and the economic fallout caused by COVID-19.
“Considering nearly half of on-road diesel fuel gallons sold in Iowa contain B11 or higher biodiesel blends, this legislation benefits consumers at the pump and the rural communities farmers call home. Biodiesel supports more than 3,800 full-time equivalent jobs and contributes nearly $500 million to Iowa’s Gross Domestic Product each year.
“We extend a special thank you to Sen. Randy Feenstra and Rep. Louie Zumbach for leading the differential extension in the Iowa Senate and House, respectively. We look forward to Governor Reynolds signing this important policy into law, a move that will help boost demand for homegrown biodiesel.”
The Iowa Soybean Association (www.iasoybeans.com) is “Driven To Deliver” increased soybean demand through market development and new uses, farmer-focused research and results, timely information and know-how and policy initiatives enabling farmers and the industry to flourish. Founded in 1964 by farmers to serve farmers, ISA is governed by a board of 22 farmers to advocate on behalf of the state’s 40,000 soybean producers, including more than 12,000 ISA farmer members and industry stakeholders.