Nebraska Soybean Producer Credits Biodiesel For Increasing Profit Outlook

Gregg Fujan says 430 million bushels of soybeans will be needed this year by manufacturers.

Published on: Oct 18, 2013

The biodiesel that fuels semis, farm tractors and bus fleets continues to fuel market potential for U.S. soybean oil and profit opportunities for U.S. soybean farmers, according to Gregg Fujan, soybean producer from Weston and member of the United Soybean Board.  

In order to meet federal biodiesel-usage requirements of 1.28 billion gallons this year, manufacturers will need 9 billion pounds of vegetable oils and animal fats. At least 4.8 billion pounds of that could be soybean oil. That's the oil from 430 million bushels of U.S. soybeans, Fujan says.   

"There's value for soybean farmers from the growing market use of soybean oil for biodiesel," he says. "It expands the market for our soybeans, which also increases the price we receive."

GOOD FOR MARKETS: Gregg Fujan from Weston says soy biodiesel expands the market for soybean farmers.
GOOD FOR MARKETS: Gregg Fujan from Weston says soy biodiesel expands the market for soybean farmers.

According to research commissioned by soybean farmers in Nebraska, Minnesota, North Dakota and South Dakota through their state soy checkoff boards, biodiesel contributed to a $15 billion increase in soybean-oil revenues between 2006 and 2012. Over that time period, this raised the price of soybeans by 74 cents per bushel, according to Fujan.  

Soy-checkoff-funded research on biodiesel's environmental benefits helped it qualify under the Environmental Protection Agency as an "advanced biofuel." Under the federal Renewable Fuel Standard, at least 1.28 billion gallons of biodiesel will be produced in the United States in 2013.

For nearly 20 years, soybean oil has been the primary feedstock for U.S. biodiesel manufacturing. The soy checkoff helps fund biodiesel research and promotion efforts to increase fuel and feedstock demand for U.S. soybean farmers.    

The 69 farmer-directors of USB oversee the investments of the soy checkoff to increase profit opportunities for all U.S. soybean farmers.

For more information on the United Soybean Board, visit www.unitedsoybean.org