Farmers, Drivers and Economists See Value in Minnesota’s Summer Switch to B10 Biodiesel

Minnesota soybean farmers will have something to celebrate this summer when the state becomes the first to require a 10 percent biodiesel blend (B10) in its diesel fuel supply on July 1.  According to a various studies, however, the benefits will also be felt outside of agriculture.

“The B10 blend is good for everyone. By introducing B10 throughout Minnesota, we improve air quality, create jobs and increase the value of soybeans,” said Jim Willers a United Soybean Board farmer-leader from Beaver Creek., Minnesota. “The benefits of B10 add up for farmers, drivers and citizens alike.”

Minnesota B10 InfographicU.S. soybean oil is the primary feedstock used to make biodiesel in the United States. The 1.36 billion gallons of biodiesel produced last year used at least 5.5 billion pounds of U.S. soybean oil, according to the U.S. Energy Information Administration (EIA). That’s the oil from more than 468 million bushels of U.S. soybeans.

The requirement will raise Minnesota’s annual biodiesel usage from 40 million gallons to an estimated 60 million gallons per year.

Willers says the benefits of increased biodiesel use will be felt statewide.

Environmental
Biodiesel is the country’s first and only commercially available fuel that qualifies as an Advanced Biofuel by the Environmental Protection Agency (EPA). Biodiesel is made from renewable resources and biodiesel use in diesel engines has been proven to reduce released pollutants such as unburned hydrocarbons, carbon monoxide, and particulate matter.

Job Creation
According to a study by LMC International, biodiesel supports 60,000 jobs nationally and adds $2.6 billion in wages to the economy.  According to the Minnesota Department of Agriculture, the Minnesota biodiesel industry supports more than 5,000 jobs and generates $928 million of economic output.

Agricultural Value
Soy-checkoff-funded research shows poultry and livestock farmers benefit from biodiesel as much as soybean farmers do. As more soybean oil is processed for biodiesel production, more soybean meal is available for livestock feed. This increased supply has lowered feed prices by as much as $48 per ton. And biodiesel works for soybean farmers, who created the biodiesel industry through the soy checkoff. A study funded by the state soy checkoff boards in Minnesota, Nebraska, North Dakota and South Dakota shows U.S. biodiesel production has increased soybean value by 74 cent per bushel .

“Minnesota soybean farmers are ready to do their part to meet increased biodiesel demand.” adds Willers. “We have seen the benefits of the biodiesel industry nationally, and want to support that here in Minnesota.”

Source: United Soybean Board