Benefit To Soybean Farmers
Growth of biodiesel and renewable diesel production and use will be key to profitability at the soybean producer level as well as throughout the value chain. As a soybean producing state, New York will benefit directly from an increase of biodiesel and renewable diesel use. Informa Economics, in 2015, concluded that biodiesel and renewable diesel had added roughly 63 cents per bushel for producers. Based on last year’s acreage that means a strong and growing biodiesel and renewable diesel market added $6,804,000 in revenue for New York soybean producers. At an individual producer level, a New York farm with 500 acres of soybeans benefited an additional $15,120 compared to prices that would have been received if there were no biodiesel and renewable diesel sales. More recently, FCStone concluded that without biodiesel and renewable diesel demand from the Renewable Fuel Standard, farmgate prices for soybean producers would be 13% less. Sustained demand from biodiesel and renewable diesel positively impacts oilseed crush margins and enhances profitability of US animal agriculture; the soybean industry’s number one customer.