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  • IRFA, ISA and IBB

Funding for Iowa’s On-Farm Biodiesel Credit program grows as groups, producers add to coffers

Updated: Sep 13, 2022

As the fall harvest grows closer, funding has more than tripled for a new statewide On-Farm Biodiesel Credit program to give back to farmers using biodiesel on their farms.

The program, launched in August by the Iowa Renewable Fuels Association, refunds farmers up to 50 cents per gallon for buying biodiesel blends.

Originally funded at $10,000, the Iowa Soybean Association and Iowa Biodiesel Board have joined as partners, providing another $10,000 to the program.

In-state biodiesel producers Western Iowa Energy, Western Dubuque Biodiesel and Chevron Renewable Energy Group have each contributed $5,000, bringing total available funds to $35,000.

Under the program, farmers can earn 25 cents per gallon for filling up with B11 (11 percent biodiesel) and 50 cents per gallon with B20 (20 percent biodiesel), up to a maximum credit of $500.

“We welcome the generosity of additional partners for the On-Farm Biodiesel Credit program,” said Lisa Coffelt, IRFA marketing director. “It underscores the strong support both for our state’s farmers and for biodiesel. Biodiesel not only adds value to soybean oil, but also corn oil and animal fats, so it’s a win for agriculture any way you look at it.”

To be eligible, farmers must purchase blends for an on-farm tank in Iowa actively used for an agricultural operation. Program funding is awarded on a first-come, first-served basis.

“Biodiesel is one of the most successful products in history when it comes to adding value to soybeans, so it makes sense to encourage Iowa farmers to try higher blend levels on their own farms,” said Grant Kimberley, IBB executive director and ISA senior director of market development, who also helps run his family farm in Maxwell, Iowa. “This is a great way to remind farmers to close that circle by contributing to on-farm profitability while improving national energy security and reducing carbon.”

The groups noted the majority of farm equipment manufacturers, such as Case IH, support B20 biodiesel blends. Some manufacturers, such as John Deere and Caterpillar, support up to B100 depending on the model year of the equipment.

Program eligibility and rules can be found here.

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