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Renewable diesel a potentially huge market for soybeans

An extension ag economist suggests renewable diesel could be for soybeans what ethanol has been for the corn market.

But Chad Hart with Iowa State University says expectations should be tempered.

“People slowly built up our production to match that demand that was coming through biofuels. I do worry that here on the renewable diesel side, that we’ve expanded soybean production already in preparation for the renewable diesel market.”

Hart tells Brownfield he’s still bullish on renewable diesel despite recent reports of plant closures and projects being paused.

“It’s sort of like what we went through with the ethanol market back 20, 25 years ago, where you had this flood of plans to build these refineries at the time. And then we pulled back to a more, I guess I’ll call it, reasonable level.”

Hart says he believes the renewable diesel industry is going through a similar process.