American Soybean Association (ASA) Vice President and Iowa farmer John Heisdorffer called on the Environmental Protection Agency (EPA) to increase the Renewable Fuel Standard (RFS) volumes for biomass-based diesel to at least 2.75 billion gallons for 2019 and to increase total Advanced Biofuels volumes to 5.25 billion gallons in 2018. During a hearing in Washington Tuesday morning, Heisdorffer noted that the biodiesel industry has expanded markets for farmers and livestock producers and created new jobs and economic growth, particularly in rural America. Biodiesel production creates a value-added market for the co-product soybean oil generated by the growing global demand for protein meal.
“The biodiesel industry has provided these benefits without any significant disruption or adverse impacts to consumers,” Heisdorffer testified. “Our industry has always advocated for RFS volumes that are modest and achievable and we have met or exceeded the targets each and every year that the program has been in place.”
Heisdorffer also runs a hog operation in his hometown of Keota, and noted that the biodiesel industry presents an added benefit for the livestock industry. “The market outlet that biodiesel provides for soybean oil also benefits livestock production by improving the margins for soybean processing and lowering the cost of soy meal used for livestock feed,” he stated. “A 2015 analysis … showed that biodiesel resulted in lower feed costs for U.S. livestock producers that ranged from $21 to $42 per ton, totaling $5.9 to $11.8 billion in total value.”