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Apr 25, 2002
Legislation contains provisions designed to boost production of biodiesel.
April 25, 2002… Saint Louis, Missouri… The American Soybean Association (ASA) applauds the U.S. Senate for approving the Comprehensive Energy Bill. The measure, approved today by a vote of 88-11, contains several provisions that would benefit U.S. soybean growers by increasing the production of biodiesel. Biodiesel is a clean-burning alternative to petroleum-based diesel fuel that is produced primarily from soybean oil.
"ASA would like to extend its sincere thanks to the Senate for a job well done," stated ASA President Bart Ruth from his farm in Rising City, Nebraska. "With today’s vote, we’re one step closer to getting a Comprehensive Energy Bill signed into law that contains strong biodiesel provisions. This is good news for Americans and good news for U.S. soybean farmers."
Included in the Senate Energy Bill are a number of provisions that are designed to encourage the use of biodiesel. They are:
Due to the large surplus of soybean oil in the world market, soybean prices are nearing historic lows. U.S. soy oil stocks are currently at a record high of 2.5 billion pounds, which helps explain why soybean oil prices are at their lowest point since 1997.
Biodiesel offers the greatest potential for removing this surplus from the market, which will help raise the price farmers are paid for their soybeans. According to a USDA study, an increase of 100 million gallons of biodiesel or other soy-based byproducts per year would boost total crop cash receipts by $5.2 billion by 2010, resulting in an average net farm income increase of $300 million per year. The price of soybeans during this period would rise by as much as $.17 per bushel per year.
In addition to the lift it would give to the struggling farm economy, there are many other benefits of increased biodiesel production. For starters, as biodiesel is made primarily from soybean oil grown here in the U.S., it lessens our country’s dependence on foreign oil. There are environmental benefits of biodiesel production as well. Emissions of greenhouse gases and particulate matter would be significantly reduced by increased biodiesel use. An increased demand for biodiesel could also create 13,000 jobs across the U.S. economy.
"By including strong biodiesel provisions in their bill, the Senate has demonstrated their commitment to U.S. soybean producers. I want our friends in the Senate who helped secure these provisions to know that ASA greatly appreciates their efforts," added Ruth.
The U.S. House of Representatives approved their Energy Bill last summer. The differences between the House and Senate Energy Bills will soon be reconciled in a joint House/Senate Conference Committee.
"Biodiesel is good for our country, good for the environment and good for our farmers," concluded Ruth. "I now call on the House to show their support for soybean producers by agreeing to accept these critically important provisions in Conference."