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Soybean leaders eye biofuels as fastest path to market growth

The vice president of the American Soybean Association says the organization is doubling down on its support of the biofuels industry.   

Dave Walton, an Iowa farmer, says it could be the fastest way to boost demand and help offset potential trade disruptions. “We can keep those soybeans at home, find the value add here through the processor, through the fuel producer and on out through the retail space.”

He says the Trump administration has indicated its support of the industry and the latest Renewable Volume Obligations are an example. “Let go of the reigns and let us run. The EPA finally said “look we finally believe you guys. You’ve always over produced the volume obligation that are put out and so we’re really going to set it high. We have a really big number that we’re talking about and we’re expecting that to finalized at that big number.”  

Walton says a recent study of the impact of higher RVO’s and the 45z tax credit could offset 20 percent of what is exported to China. “Twenty percent doesn’t sound like a big number but when you’re talking about the user that takes about two-thirds of our soybeans, that’s a big number. Anytime we can get a stable market domestically that can help offset some of the price volatility in the export channels.”

He says soybean farmers are well-positioned to help support biodiesel and renewable diesel plants when consumer demand improves.

Dave Walton: