Iowa Biodeisel Maker Counters Tax Group Argument

westerndubuque1A biodiesel producer is disputing claims by a taxpayer watchdog group that says producers of biofuels shouldn’t still be getting government assistance. This article in the Dubuque (IA) Telegraph Herald says a report by Taxpayers for Common Sense shows that Western Dubuque Biodiesel in Farley, Iowa received more than $2.5 million in tax-funded assistance between 2009 and 2014, and the group pushes for the elimination of the bioenergy program in the federal farm bill. But Tom Brooks, general manager of Western Dubuque Biodiesel points to the good biodiesel has done in Iowa alone, producing 230 million gallons of fuel in 2013 and more than 7,000 jobs in the state.

Brooks said the government assistance is necessary to level the playing field with oil companies.

“Government has always had a hand in to help starting industries. Big Oil has had a hand up for over 100 years to the tune of several hundred billion dollars in tax supports that they still draw today,” Brooks said.

The watchdog report also makes a point of highlighting large agribusinesses that are benefiting from government assistance. Companies like Renewable Energy Group, Louis Dreyfus and Cargill received roughly $10 million each or more between 2009 and 2014, the report says.

Brooks said it is unfair to lump Western Dubuque Biodiesel in with those companies.

“I’m in the big, booming metropolis of Farley,” Brooks joked. “The (report) suggests we’re paying all these big companies. The vast majority of these producers are small.”

The article goes on to say that Brooks argues the report doesn’t take into account the savings for the country when biofuels reduce the dependence on foreign oil.

“What’s the cost to our taxpayers for those soldiers in Afghanistan and the Middle East? For every gallon of oil we buy not from the U.S., you’re giving to a foreign country’s economy and they may not exactly share our political values, let alone our moral values,” Brooks said.

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