IRFA relaunches On-Farm Biodiesel Credit program

The Iowa Renewable Fuels Association relaunched the statewide On-Farm Biodiesel Credit program March 28 to give back to Iowa farmers.

Farmers who buy a biodiesel blend can receive up to 50 cents per gallon for filling an on-farm tank in Iowa used in agricultural operations.

“This is a great way for farmers to try a B11 blend or bump up to B20,” said Lisa Coffelt, the IRFA marketing director. “IRFA is thrilled to be able to relaunch this program with $45,000 in available funding for 2023. Last year we exhausted $35,000 in cash-back credits to almost 100 farmers who used higher biodiesel blends on their farm.”

The Iowa Soybean Association and Iowa Biodiesel Board continue to partner with the program, providing $10,000.

Biodiesel producers Western Iowa Energy, Western Dubuque Biodiesel and Chevron Renewable Energy Group each contributed $5,000.

IRFA provides $20,000 in funding and manages the program.

“Biodiesel is a win for agriculture on multiple levels as it adds value to soybean oil, corn oil and animal fats,” Coffelt said. “It is supported by John Deere and CASE IH engines. We are looking forward to putting more money in farmers pockets this year as we expand biodiesel distribution.”

Response to the first round of funding in 2022 was positive.

“We use biodiesel year-round on my farm—B20 in the summer and B5 in the winter and have had absolutely no problems,” said Randy Miller, a soybean farmer from South Central Iowa. “The biodiesel credit is just one more example of the benefit that is out there for farmers to use to get started using biodiesel.”

Farmers will 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.

Program funding is limited and will be awarded on a first-come, first-served basis.

To be eligible, farmers must meet the criteria and follow the procedures outlined here.