The American Soybean Association submitted a statement to the Senate Agriculture Committee hearing on Thursday, urging the development of a 2018 Farm Bill that includes an Energy Title and mandatory funding for priority programs.

There are several energy title programs important to soybean producers, including the Biobased Market Program, the Biodiesel Fuel Education Program and the Bioenergy Program for Advanced Biofuels.

“ASA recognizes that these Energy Title programs do not have baseline going forward, increasing the challenge of extending these programs and building on the benefits they have provided,” ASA states in the comments. “However, these programs remain high priorities for ASA and we believe that the relatively low cost and the benefits they provide warrant their continuation with an increased level of mandatory funding.”

The Biobased Market Program is an effective and important program for promoting the emerging biobased industry, which has significant potential to enhance agricultural markets, meet the growing demand for biobased alternatives in chemicals, plastics, cleaners and other industrial products, and contribute new jobs to the economy.

The Biodiesel Education Program plays a vital role in helping expand marketplace acceptance and use of biodiesel as a low-carbon, renewable diesel replacement fuel.  It supports technical outreach efforts to engine manufacturers, truckers, and fuel marketers that allow the use of higher biodiesel blends in conventional diesel applications.  Specifically, the biodiesel education program had a large part to play in building automakers trust in, and support for, biodiesel blends and growing the number of terminals, distributors, and retail outlets carrying biodiesel.

The Bioenergy Program for Advanced Biofuels is a program of significant interest and opportunity for producers of bioenergy and bioproducts, particularly biodiesel. The biodiesel industry is still establishing itself in the competitive fuels marketplace and the Bioenergy Program plays a beneficial role is supporting domestic producers facing market fluctuations and uncertainty and competition from subsidized foreign biomass-based diesel imports.

For the soybean industry, biodiesel provides a valuable market for soybean oil that has historically provided a drag on overall soybean prices and it has provided an outlet and market for soybean oil whose use in food production for baking and frying has declined due to trans fat issues.

“While ASA recognizes the funding challenges that exist, we believe that the Bioenergy Program for Advanced Biofuels can continue to play a role in supporting the development of advanced biofuels, bioenergy, and biobased products and we support the reauthorization and funding of the program in the next Farm Bill,” ASA states.