On-Farm Biodiesel Credit program open again for Iowa farmers

The Iowa Renewable Fuels Association announced April 9 that it is once again offering the statewide On-Farm Biodiesel Credit program to farmers who buy a biodiesel blend for their Iowa farm tank.

The program offers up to 50 cents per gallon.

“This is a great opportunity for farmers to try higher blends of biodiesel on their farm like B20, especially if they have previously used B11,” said Lisa Coffelt, marketing director for the IRFA. “It truly goes to show that farmers are willing to use higher biodiesel blends in their farm operations. This program is a fantastic opportunity for farmers, and we would love to see more take advantage of these credits while using homegrown fuel. Especially when we’ve seen on-farm use of B20 increase by five times, according to the 2023 Retailers Motor Fuel Gallons Report.”

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 supported by John Deere and CASE IH engines,” Coffelt said. “It’s a win for saving money, keeping a clean environment and supporting homegrown energy. I would encourage previous credit recipients and fuel suppliers to share the benefits of getting involved in the program.”

Many individuals who took advantage of previous funding have found the program to be a success.

“We have never had any problems with it in any of our tractors, combines, sprayers or grain trucks,” said Iowa farmer Darwin Gordon, a past recipient of the credit. “We grain farmers need to support our own industry.”

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-serve basis.

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