Iowa Biodiesel Board: Market-driven policies key to long-term farm recovery

The Iowa Biodiesel Board responded Dec. 9 to the Trump administration’s announcement of a $12 billion Farmer Bridge Assistance Program, expressing appreciation for the support while emphasizing that long-term, market-driven policy solutions are essential to helping Iowa’s farmers thrive.

In the new program, $11 billion will be distributed among farmers who produce 20 commodities, including soybeans.  

“We’re grateful to President Trump and Secretary of Agriculture Brooke Rollins for recognizing the financial pressures facing Iowa’s soybean farmers and taking action to provide immediate relief,” said IBB Executive Director Grant Kimberley. “This one-time payment helps, but it by no means will be close to making farmers whole because of the losses seen this year and the previous three years.”

Kimberley added that this bridge assistance comes at a critical time when farmers are making decisions about next season’s planting amid challenging market conditions.

“However,” he said, “the most enduring way to support our farmers isn’t just through one-time payments—it’s by bolstering robust, reliable markets for their crops. Biodiesel adds value to every bushel of soybeans grown in Iowa, accounting for roughly 10 percent of each bushel’s worth. When biodiesel markets are strong and predictable, farmers benefit directly through better prices and more marketing opportunities.”

Kimberley continued, saying, “Independent biodiesel plants have been brought to their knees, and farmer investors in those plants will suffer further if we lose that energy infrastructure. We need the treasury department to release clear, workable guidance on the 45Z clean fuel tax credit immediately so biodiesel producers, and soybean farmers, can make investment decisions and plan for the future. Also, EPA must finalize a strong Renewable Fuel Standard with all small-refinery exemptions (SREs) reallocated to ensure the volume obligations are actually met. These policies directly translate into market demand for Iowa soybeans—and that’s what creates lasting value for our farmers.”

The state’s 10 operating biodiesel plants produced an estimated 350 million gallons in 2024, making Iowa the top biodiesel-producing state in the nation and a vital market for Iowa’s soybean farmers.