The United Soybean Board (USB) and soybean checkoff is partnering with nine Clean Cities Coalitions in the 2012 biodiesel and Bioheat® communications program to spread the word about the only commercially available advanced biofuel.

“Clean Cities coalitions are really great organizations,” says Mike Beard, USB director and soybean farmer from Frankfort, Ind. “This program helps them, and it helps us to get the word out about clean, efficient soy biodiesel.”

Clean Cities Coalitions participating in the 2012 reimbursement program include:
• Alabama Clean Fuels Coalition
• Greater Washington Region Clean Cities Coalition
• Iowa Clean Cities
• Kansas City Regional Clean Cities Coalition
• North Dakota Clean Cities
• Triangle Clean Cities Coalition
• Twin Cities Clean Cities Coalition
• Virginia Clean Cities
• Yellowstone-Teton Clean Energy Coalition

Most of the coalitions will also be working with their state soybean checkoff organizations on the promotions. This year, the soybean checkoff committed nearly $200,000 to assist these chapters in communicating the benefits of soy biodiesel and Bioheat through radio public service announcements, outdoor advertising, informational workshops for energy users and distributors, promotional events, and many other activities.

Early last year, the United Soybean Board released the findings of a life cycle analysis report that compared several different soy-based products with the same products made from petroleum sources, including soy biodiesel. The peer-reviewed study was done by Omni Tech International, a consulting firm specializing in renewable and biobased products. The study included a review of soy-based biofuels, plastics, lubricants and coatings.

Omni Tech consultant Jim Pollack says they found out that soybean yields increase 12% in the last ten years, energy to grow soybeans was down 20%, soybean crushing plants were using 45% less energy to make soybean oil. “When the oil was sent over to the biodiesel plants, they were using 35% less energy,” Pollack said. “So, collectively, all of these improvements have resulted in a very favorable life cycle profile for soy biodiesel.”

Pollack was telling that story at the recent National Association of Farm Broadcasting annual meeting. Listen to my interview with him here: Jim Pollack with Omni Tech International

“These radio ads are designed to encourage Iowans to learn more about the industry’s starting line-up of performance, quality, support for Iowa agriculture, green-job creation, as well as price and availability,” said Jon Scharingson, Director, Sales and Marketing at Renewable Energy Group® (REG), part of the group coordinating the ads. “Whether you’re a Hawkeye or a Cyclone, we want Iowa diesel engine operators to ask for biodiesel blends from their local petroleum marketer whether it is at the retail pump or for delivery to their business, fleet, or farm.”

In addition to REG, the radio ads are being sponsored by the Iowa Renewable Fuels Association, the Iowa Soybean Association and the Iowa Biodiesel Board to encourage consumers to ask for biodiesel blends from their local fuel retailer, coop or petroleum marketer. The ads are partially funded by the soybean check-off.

According to the Iowa Department of Weight and Measures, a five percent biodiesel blend (B5) has the same performance and quality attributes as straight diesel fuel. “B5 biodiesel blends can perform in any diesel engine in any season,” said Scharingson. “We urge consumers to ask for this home-grown, Iowa-made fuel from any petroleum marketer in Iowa.”

Officers elected to lead the board are:
Gary Haer, chairman, Renewable Energy Group, Inc. (Producer)
Ed Ulch, vice chair, Iowa Soybean Board (Farmer)
Ron Marr, secretary, Minnesota Soybean Processors, (Producer)
Jim Conway, treasurer, Griffin Industries (Producer)

Biodiesel board members also voted to fill eight board member spots, which include the officer team and:
Ed Hegland, Minnesota Soybean Research and Promotion Council (Farmer)
Kris Kappenman, Archer Daniels Midland (Producer)
Bob Metz, South Dakota Soybean Research & Promotion council (Farmer)
Robert Stobaugh, Arkansas Soybean Promotion Board (Farmer)

The Clean Cities program is a government-industry partnership sponsored by DOE that has more than 90 local chapters across the United States working to reduce petroleum consumption. The checkoff has opened the biodiesel reimbursement application process and encourages Clean Cities chapters to partner with Qualified State Soybean Boards for this project. “Hopefully we’ll see more applications for programs that reach out to potential biofuel users in the commercial area, such as heavy trucks and contractor fleets,” says Mike Beard, USB director and soybean farmer from Frankfort, Ind. “We also want to continue to reach those who make decisions in municipal governments.”

The application period will close November 14. Participating chapters will be selected by USB farmer-leaders. USB has provided up to $150,000 to use toward the funding of these soy biodiesel and Bioheat® communications programs. Selected participants in this reimbursement program will be announced in mid-December.

In addition, USB has a second reimbursement program opened for Clean Cities. This will focus on creating demand for soy-based products, many developed with the help of the soybean checkoff. This program will award three reimbursements for up to $10,000 and four reimbursements for up to $5,000.

This year’s scholarships are given in memory of the late father of Mike Youngerberg, senior director of field services for the Minnesota Soybean Growers Association. Reuben Youngerberg owned a farm in Blue Earth County, where he held a number of board positions in local agriculture organizations.

The Reuben Youngerberg Memorial Biodiesel Scholarship is open to any Minnesota high school senior and offers a $1,600 1st place and $500 2nd place award to the winners of an essay contest about biodiesel, a cleaner-burning alternative fuel produced and used in Minnesota. Rules and an online entry form can be found at www.cleanairchoice.org. Deadline for entries is March 30, 2012.

The scholarship is administered by the American Lung Association in Minnesota, which recognizes biodiesel as a “clean air choice” fuel that reduces emissions, and sponsored by the Minnesota Soybean Research and Promotion Council, with additional support from the Minnesota Soybean Growers Association, National Biodiesel Board, MEG Corp, and Renewable Energy Group, Inc.

World Agricultural Outlook Board Chairman Gerry Bange says soybean oil use for biodiesel is up 44% over last year at 3.6 billion pounds. “The EPA has indicated its intention to enforce the billion gallon standard and what we’re seeing is a substantial increase in the amount of soybean oil being used to produce methyl ester, which is another way of saying biodiesel,” he told USDA Radio.

This is resulting in a tightening of ending stocks for soybean oil and higher prices. “What it’s leading to is a continuation of a fairly strong price at 55 cents per pound, compared to 53.2 cents per pound in 2010-11,” he said.

“It’s a great plant that needed to run,” Brad Albin, REG Vice President of Manufacturing, said at the plant’s re-opening on Monday. “It had no where to go but was a jewel just sitting here ready to run.”

REG originally built the plant in 2005 for SoyMor, which ran it for three years before shutting down in 2008. “We’re very lucky to have brought this plant up within about four weeks,” said Albin. “It was actually the largest 30 million gallon plant years ago and what’s great about it is that it’s highly efficient and we’ve already got it up to just about 90% throughput.”

Since Minnesota has a state requirement for biodiesel blends, Albin says it was important to get the plant back on line. “Minnesota is a great user of biodiesel so it was just natural that we build it, we’d run it, get back and get it going again,” he said of the plant which uses soybean oil as its primary feedstock.

Listen to or download interview with Brad Albin here. REG VP Brad Albin

REG Albert Lea Biodiesel Plant Photo Album

“While we understand the pressures facing Congress, this is the wrong time to pull support from a growing American industry that is a rare bright spot in this economy,” said Anne Steckel, NBB vice president of federal affairs. “Our industry is having a record year of production, and the tax incentive is a key ingredient in that success. Stripping the incentive away this year would put thousands of jobs in jeopardy.”

Steckel’s written testimony was submitted to the committee for a hearing on energy tax policy and tax reform held today that focused on whether energy policy should be conducted through the tax code, and specifically on proposed tax credits for natural gas under the New Alternative Transportation to Give Americans Solutions (NAT GAS) Act of 2011.

While, the biodiesel industry was not called to testify at the hearing, Steckel’s submitted comments highlighted the biodiesel industry’s rebound this year after the biodiesel tax incentive was reinstated following a one-year lapse in 2010 which caused production to drop dramatically last year as dozens of plants shut down and thousands of people lost jobs.

Since its reinstatement this year, the industry had produced roughly 475 million gallons as of July compared with 315 million gallons in all of 2010. This year’s increased production of at least 800 million gallons will support more than 31,000 jobs while generating at least $3 billion in GDP and $628 million in federal, state and local tax revenues, according to a recent economic study conducted by Cardno-Entrix.

“We believe the U.S. biodiesel industry offers a clear and compelling case that strong domestic energy policy can boost this economy,” she said. “Our production turnaround this year is creating good-paying jobs in nearly every state in the country.”

That claim was highlighted with the re-opening of a southern Minnesota biodiesel plant this week. Minnesota soybean farmer Jim Willers said reinstating the biodiesel tax incentive is one of the best jobs creation programs the government has done lately. “This plant’s put almost 25-30 people back to work, there’s usually 50 trucks that go through here and the spin off effect from this plant creates almost 2,000 jobs,” he said. “Between state and local and federal taxes, it’s way more than the tax credit so your return on investment for the government is just terrific with biodiesel.”

“They’re great green collar jobs,” said Kehr, who noted the importance of the agriculture industry to the region. “If you take the value-added in soybeans here in Freeborn county on the seven million bushels that were harvested last year, that represents nearly $1,750,000 into our community.”

Listen to the opening ceremony comments here. REG biodiesel plant opening ceremony

Rep. Murray said that job creation is the number one priority for lawmakers. “I’m excited about the jobs, that’s why I’m here today,” he told me. “It’s a great value add for agriculture and agriculture is the back bone of southern Minnesota and of the whole state.”

Minnesota has had an increasing biodiesel blend requirement since 2002, which is slated to go to 20 percent by 2015. “And this plant’s going to help us get there,” said Murray.

Listen to my interview with Rep. Murray here. Minnesota state representative Rich Murray

REG Albert Lea biodiesel plant photo album

Chris Hill, a soybean farmer who serves on the board of the Minnesota Soybean Growers Association and the Minnesota Biodiesel Council, is pleased to see the plant re-open because it really adds value to the soybeans he grows. “The National Biodiesel Board did a study taking into account the benefit of biodiesel, it can add approximately $2 to every bushel from the farm,” said Hill. “On a 500 acre farm, that’s roughly $5000 added income.”

Hill, pictured here on the left with REG president Dan Oh, says the economic benefits of biodiesel production in a rural community have a multiplier effect. “From the farmer, to the elevator to the tire salesman, to the people buying the biodiesel to blend it, for trucks and everything else, it just helps everybody,” Hill said, adding that it helps all of agriculture, including livestock producers who benefit because it helps reduce the cost of soybean meal.

Listen to or download interview with Chris Hill here. Minnesota Farmer Chris Hill

REG Albert Lea biodiesel plant photo album

REG President and COO Dan Oh says they were involved in the construction and operations of the plant when it originally was built and opened by SoyMor. “We have worked together since 2003,” said Oh. The plant unfortunately got caught up in the economic issues that hit the renewable fuels industry back in 2008 and had to shut down, but REG felt it was a significant plant that needed to get back in operation, so they worked to make it happen for the local economy. “Think of a gallon of biodiesel in roughly every bushel of soybeans, this is a 30 million gallon biodiesel facility, so that really adds value back to a bean bushel,” Oh said.

Listen to or download interview with Dan Oh here. REG President Dan Oh

Representatives of the Minnesota soybean industry were on hand today for the grand opening, including Jim Willers, who is a farmer from Beaver Creek and a director on the United Soybean Board, as well as a member of the Minnesota Soybean Research and Promotion Council. After touring the plant, Willers said he was impressed with the shape it is in after being shut down for three years. “I found out that it was in excellent condition when they closed it down and the start up was way better than they thought,” he said. “It’s a state of the art facility and in six months they’re going to be a BQ-9000 plant.”

Listen to or download interview with Jim Willers here. Minnesota soybean farmer Jim Willers

Watch the ribbon cutting below and see photos in the REG Albert Lea biodiesel plant photo album

REG acquired the former SoyMor production facility earlier this year, which is now known as REG Albert Lea, LLC. The company will be celebrating the grand re-opening of the plant with members of the Minnesota Soybean Research and Promotion Council, as well as state and local dignitaries, on Monday morning.

“With nationwide demand for biodiesel growing steadily through implementation of the Renewable Fuels Standard (RFS2) and Minnesota’s continued biodiesel consumption leadership, we expect to quickly ramp up production at REG Albert Lea, LLC,” said REG’s CEO Jeff Stroburg when the purchase of the plant was finalized. “With a foundation in agriculture and expertise in domestically-produced, renewable energy, REG is proud to bring green-collar jobs to this rural economy while supporting ag producers in Minnesota and across the Midwest.”

Minnesota is a leader in the biodiesel industry, being the first state to require that all diesel fuel contain a two percent blend in 2005, and has since increased to a five percent blend. “Increasing the amount of biodiesel in our fuel allows us to take advantage of a renewable fuel made right here in Minnesota,” said Ed Hegland, former National Biodiesel Board Chairman and Minnesota farmer. “I’m proud to live in a state that is leading energy innovations and taking part in valuable solutions like biodiesel.”

REG was already the largest biodiesel producer in the United States and the acquisition of REG Albert Lea brings the REG owned/operated total to more than 210 million gallons per year. REG was the general contractor and manager for the 30 mmgy refined vegetable oil feedstock biodiesel plant which originally began production in April 2005. Distribution of biodiesel at the facility started late last month. REG filed for filed an initial public offering in July.

Nebraska Governor Dave Heineman joined state soybean board chair Lisa Lunz, NASCAR Nationwide driver Kenny Wallace and Alan Tiemann, chairman of the Nebraska Corn Board, in making the declaration. “Nebraska’s renewable fuels sector contributes to local communities by providing good paying jobs for thousands of Nebraskans,” said Gov. Heineman. “Renewable fuels are a critical component of becoming energy independent and by providing an alternative to imported oil. We are fortunate to have a strong biofuels industry with thousands of Nebraskans working to fuel America.”

The proclamation was coordinated through the Nebraska Corn Board and Nebraska Soybean Board, who hosted the event at Husker Harvest Days to recognize the contributions of Nebraska farmers and agribusinesses to the nation’s renewable fuel supply.

“These greater levels of usage have placed a strain on the agricultural production system, resulting in low inventories that leave little room for any production shortfalls,” Hurt said. “Producers certainly have responded to try to meet those demands, but what we’ve seen is that demand has really outpaced the ability of the world to supply.”

Hurt said wheat stocks are in better shape than corn and soybeans that are near “bare minimums” in the U.S. In the past, he said there was enough for 46-60 days or more but anticipates that this won’t be the case after this fall’s harvest.

“With corn, it looks like we could be down to about a 24-day supply at the end of this marketing year,” said Hurt. “That, of course, means any further threats to the 2011 crop yields would send markets into deeper shortages and higher prices.”

Historically, the majority of the corn becomes livestock feed, but in recent years, a larger amount as been going to ethanol production. Hurt said this has led to increased corn acreage and higher prices.

“Fifty-nine percent of all the growth in corn use in the entire world over the last five years has been in a category where ethanol would be placed: industrial use,” Hurt continued. “Here in the United States over the last five years 100 percent of the increase in corn usage is for ethanol, representing 2.5 billion bushels of corn.”

About 27 percent of the U.S. corn crop is used for ethanol, compared to 10 percent in 2005, Hurt estimated. This somewhat factors in the fact that much of the corn used in ethanol production goes back into the market as livestock feed in the form of dried distillers grains.  All told, says Hurt, 16 million additional acres of corn from the 2010 crop was required to produce ethanol versus 2005.

A soybean short fall is also estimated. The USDA has estimated that the soybean supply may be only 22 days on August 31. The U.S. has experienced a 60 percent growth in soybean exports between 2005-2010 with China accounting for the largest growth estimated at 23 million acres.

Hurt says that American farmers have their work cut out for them since the world is relying on them, more than any other country, to provide food and fuel. He concluded, “Either of these demand surges would have had significant impacts on crop prices, farm incomes and land values, but because they were both big and came at the same time the impacts were even larger.”

The Biodiesel Tax Incentive Reform and Extension Act would extend the $1 per gallon tax credit from 2012 through 2014 and would reform the biodiesel tax incentive from a blenders excise tax credit to a production excise tax credit. “Biodiesel development and production is an important job creator for this country,” said House co-sponsor Congressman Aaron Schock (R-IL), who notes that biodiesel is an important industry for soybean producers and the rural economy of his home state.

“Illinois soybean farmers have a great interest in the development and expansion of the U.S. biodiesel industry. Biodiesel has provided a significant market opportunity for soybean farmers, and jobs and economic development for rural communities,” said American Soybean Association Vice President Ron Kindred of Atlanta, Ill.

Schock says that extending the credit will also help develop other crops for the production of biodiesel, such as Pennycress, which has an exceptionally high oil content. Initial research indicates that an acre of pennycress can yield up to 110 gallons of biodiesel, twice what can be produced from an equal amount of soybeans.

The National Biodiesel Board (NBB) is pleased that extension legislation has been introduced, now that the industry is getting back up to speed after losing the tax incentive for an entire year. “Unfortunately, we don’t have to speculate about what would happen to our industry if this tax incentive goes away. We saw the fallout last year when the incentive temporarily expired. Plants closed and thousands of people were laid off. It would be a terrible mistake if Congress allowed that to happen again,” said NBB Chairman Gary Haer. “We are poised for a record year of production this year, and this bill would provide the market and investor certainty that the industry needs to continue building on that progress.”

One of the greatest challenges that must be overcome is the fact that while polylactides (PLA) are degradable polymers that can be used in a variety of products, they tend to soften at higher temperatures. This rules them out for extensive use in food and beverage packing applications. Enter Hillmyer. He and his team have developed new types of polyactide-based materials that could overcome this challenge.

Hillmyer believes this discovery could be used in a wide variety of applications that require high temperature stability and toughness. These include plastic bottles, microwave trays, cell phones and more. Hillmyer believes sustainable polymers are the “materials of tomorrow.”

The plasticizers developed by Hillmyer and his team including Dr. Dharma Kodali, are derived from soy oil. Kodali explained that the new plasticizers are synthesized in their lab and could be a viable replacement for petroleum-derived plasticizers. They are comparable in price and performance but are safer, says Kodali, because they are made from renewable resources and degrade readily if leaked into environment.

Current phthalates can leach from plastic and be harmful to the environment and people. Various studies have shown them to be carcinogenic and cause hormonal disruptions.

The soybean oil is chemically converted into new molecules that are useful for the production of things such as polyurethane foams (foam bedding, furniture, building materials). The soybean oil is renewable, degradable and cost competitive. Hillmyer said that so far, the plasticizers have demonstrated good general property profiles but they are not yet sure of the performance of foams at extreme temperatures. He also noted that while the rate of degradation varies on external conditions, on average, a cup made out of polylactide will degrade in an industrial compost environment over about two months.

Hillmyer also said that many of these new materials are already cost competitive with petroleum based materials. However, the newer materials they are developing are in experimental stages and process optimization has not been performed. Therefore, the ultimate cost of the new experimental materials is undetermined at this time.

There is a big market for biopolymers. According to a USDA study conducted in 2008, bio-based polymers could account for nearly 33 percent of the total global market by 2025.

“The global polymer market is hundreds of billions of dollars,” said Hillmyer. “Our technologies could account for some fraction of this huge number.”

Marc Hillmyer’s research has taken place over the past four years, supported by grants from the USDA and Natureworks LLC. Dharma Kodali’s project is in its third year and is funded by United Soybean Board.

“The acquisition of Prairie Pride’s soybean facility and partnership for the biodiesel business were attractive to us because they are aligned with our growth strategy and fit well within our integrated business model,” said Matthew J. Jansen, president, Global Oilseeds. “We look forward to working with the 1,000 farmers of Prairie Pride to transform soybeans into food, feed and fuel products used by consumers and businesses around the world every day. And we look forward to becoming a part of the Vernon County community.”

Prairie Pride officials say that a long-term relationship with ADM will give their members “the greatest potential to receive returns on their investment without the necessity of infusing more capital into Prairie Pride.”

This news release from the USB says that, over the past five years, biodiesel added 27 cents a bushel to the price of soybeans, giving American soybean farmers another $2.7 billion in net returns:

The study also found good news for the U.S. soybean industry’s biggest customer, the U.S. animal agriculture sector, which uses nearly 98 percent of the domestic supply of U.S. soybean meal. The increased demand for soybean oil resulted in a larger supply of U.S. soybean meal, decreasing feed prices paid by U.S. poultry, livestock and fish farmers by between $16 and $48 per ton in marketing years 2005-2009.

Soybean oil remains the dominant feedstock for biodiesel production, and the soybean checkoff funds a large portion of the research and promotion of biodiesel through the National Biodiesel Board. Much of this funding has been used on testing to prove biodiesel’s performance, economic and environmental benefits.

The release goes on to point out that biodiesel supports 20,000 American jobs, putting more than $800 million into tax coffers in 2009.

ASA believes a highly coordinated effort is needed to identify and respond to the immediate, as well as longer-term, market threats resulting from RED implementation. “Trade reports indicate that, since the RED was implemented by Germany on January 1, 2011, U.S. soybean exports to that country have declined significantly, and soybean oil processed in the EU from U.S. soybeans is being re-exported out of the EU,” said ASA First Vice President Steve Wellman, a soybean producer from Syracuse, Neb. “As other Member States transpose the RED into national law, ASA anticipates the economic viability of exporting U.S. soybeans to the EU will be further eroded, and that a $1 billion market could be lost.”

In order for biofuels to qualify for EU tax credits and use mandates, the RED requires that biofuel feedstocks must reduce greenhouse gas emissions by a minimum of 35 percent by 2013, and by 50 percent by 2017, compared to petroleum diesel. Based on Brazilian production and transportation data, the EU set the greenhouse gas savings default value for soy biodiesel at 31 percent, short of the 35 percent reduction required. This disqualifies soy as a feedstock for biodiesel. EU-grown rapeseed however passed with a 38 percent value. Since virtually all of the soybean oil processed from U.S. soybeans in the EU is used in biodiesel production, disqualification jeopardizes $1 billion in annual sales of soybeans to EU markets.

The ASA cites a study funded by the United Soybean Board (USB) that shows American soy biodiesel actually reduces greenhouse gas emission by up to 52 percent.

“Terminal 6 is a leading processor of soybeans, and a flagship plant for Bunge Argentina and Aceitera General Deheza,” said Janet Roemer, President and Chief Operating Officer of Verenium. “Verenium is pleased to be able to work with Terminal 6 to enable enhanced operating efficiency through the use of Purifine PLC. This implementation provides further validation of Verenium’s Purifine technology to increase oil yields and improve the efficacy of meal production, and has been enabled by our partnerships with Alfa Laval and Bunge.”

“The implementation of Verenium’s PLC technology at Terminal 6 combined with Alfa Laval’s process, engineering and equipment supply capabilities, is the second large scale project we have completed together,” said Bent Sarup, General Manager of Alfa Laval’s Vegetable Oil Technology activities. “Completion of the start up of Terminal 6′s new process is further validation of our ongoing partnership with Verenium.”

The Terminal 6 industrial facility is specifically designed to use large-scale process efficiencies that maximizes oil and meal from soybeans at a low cost. Verenium’s enzyme will improve those efficiencies by lowering oil loss.

The Inside Futures website says contracts for January soybeans have hit a new high for the year at nearly $14 a bushel … and could go over that mark:

The soy complex has been led by the Soy Oil which also made a new high for the year. From a technical standpoint this is rather bullish, however it is important to note that we are experiencing thin holiday trade and with less then normal volume technical indicators may be less reliable. Either way, the new highs could suggest that we could now continue to move higher with sights set on 14.000.

Fundamentally the Soybean market got a major boost when Congress approved a $1.00 per gallon tax credit for Biodiesel. This is significant because this had expired a year ago and had put a major damper on Biodiesel demand. The Soybeans have a tight balance sheet, which could potentially get tighter.

The site does note that trading has been light during this holiday week.

And this article from Corn and Soybean Digest says that shouldn’t be too much of a surprise from Alan Kemper, a fifth generation corn, soybean and cattle farmer from Lafayette, Indiana and the first person to hold both the ASA presidency and that of the National Corn Growers Association, a job he held in 1989-1990:

“We were pushing ethanol before it was cool,” he says, “and the need for expanded biofuels use – especially biodiesel– has never been more important than now. It’s essential that we receive a multi-year extension of the $1/gal. federal tax credit for biodiesel. This will be a net win for soybean growers, our country and our government.”

The article goes on to say that Kemper is also pushing free trade agreements to help American soybeans and wants to make sure there is profitability and sustainability in the oilseed market.

Participating from ASA are grower-leaders Joe Steiner of Ohio, Bob Henry of Kansas and Darryl Brinkmann of Illinois. These ASA leaders are joining with farmers from state soybean associations, biodiesel producers and others in the biodiesel industry to push for passage of legislation to extend the biodiesel tax incentive during the lame duck session.

“Extension and renewal of the biodiesel tax credit are critical to the economic viability of the industry,” Steiner said. “Expiration of the biodiesel tax incentive on Dec. 31, 2009, has resulted in lost production and jobs. This situation is likely to worsen if the credit is not reinstated.”

In 2009, the U.S. biodiesel industry produced 545 million gallons of biodiesel. Based on August and September production levels, 2010 production is expected to be approximately 345 million gallons, a decline of over 35 percent from the previous year.

One fortunate student scientist with an interest in biodiesel will get a full-ride scholarship to the biggest biodiesel event of the year – the National Biodiesel Conference & Expo, Feb. 6 – 9 in Phoenix, Ariz.:

The scholarship will include:

* Conference registration (a $725 value);
* Three nights hotel;
* Airfare (domestic travel only);
* Networking opportunities with some of the brightest minds in biodiesel research;
* Recognition in conference materials.

The NBB will also be offering several other scholarships to the conference that reduce the registration fee to just $100.

This latest move to encourage student interest in biodiesel comes on the heels of the NBB launching the Next Generation Scientists for Biodiesel initiative, a student group formed to demonstrate and grow support for biodiesel among tomorrow’s scientific leaders.

Applicants must be a college/university student in a scientific field of study and must have signed the Next Generation Scientists for Biodiesel initiative’s online declaration of support. Students need to submit:

* A resume
* A 500-word summary of your experience with biodiesel, commitment to biodiesel, and career plans
* Optional: a biodiesel-related photograph of yourself
* Optional: an I Believe in Biodiesel video clip

Application deadline is December 15, 2010. More information is available here.

This project is supported by the National Biodiesel Board and the United Soybean Board through the soybean checkoff.

The annual event will be “smooth sailing” for soybean, corn, wheat and sorghum farmers and biofuels will be a big part of the event, as always.

Growers who attend the 2011 Commodity Classic are sure to benefit from the value of attending a trade show with more than 800 booths representing today’s leading agricultural equipment, technology, product and service companies and organizations.

“While enjoying the warm Florida sun, one can learn of new products and methods to increase the profitability of their farm,” said Commodity Classic Co-Chair Charles Cannatella. “As a producer of all the commodities represented at Commodity Classic, I look forward to attending the policy development sessions. A grower can strengthen his industry by helping to set policy.”

Special entertainment at Classic this year is Little River Band and the jam-packed schedule includes educational sessions, technology demonstrations, association banquets, entertainment events and important networking opportunities.

Once the biodiesel plant is completed, it will become the first in the state of Santa Catarina. The state has an ample supply of soybeans produced mainly by small family farms.

“We see exciting opportunities for ADM within the Brazilian biodiesel industry. With strong support from the government, biodiesel is poised to play an increasing role in meeting Brazil’s growing demand for renewable fuels,” said Patricia Woertz, chairman, chief executive officer and president of ADM. “By locating the plant adjacent to our Joaçaba soy operations, we’re able to leverage our origination, transportation and processing assets.”

ADM purchased the Joaçaba facility back in 1998 from Sadia. Currently, these operations process nearly 475,000 metric tons of soybeans and can refine approximately 73,000 metric tons of soybean oil annually. Once the biodiesel plant is operational, the facility is expected to increase the oil refinery capacity to nearly 110,000 metric tons per year.

“Brazil has been a global leader in creating a robust domestic renewable fuels industry that supports both social and environmental goals. And the recent implementation of 5 percent biodiesel blends in 2010 –– three years ahead of schedule–– demand for biodiesel in Brazil continues to grow,” said Domingo Lastra, president of ADM do Brasil Ltda. “With the Joaçaba biodiesel plant and our facility in Rondonópolis, ADM will play an important role in meeting that demand.”

Joined by representatives of the Nebraska Corn and Soybean Boards, Gov. Heineman said that renewable fuels are a critical component of energy independence and energy security, while providing economic growth and vitality in the state. “Nebraska is one of the leading producers of corn and soybeans in the United States – agricultural commodities used in the production of ethanol and biodiesel, which reduce our dependence upon foreign oil,” he said, adding that ethanol replaced the need for more than 300 barrels of oil last year, while biodiesel displaced the equivalent of 38 million barrels of crude oil.

Also on hand was Olympic gold medalist Curt Tomasevicz, on behalf of the Nebraska Corn Board, who touched on the importance of the quest toward energy independence. “This isn’t just about creating a more robust domestic energy supply. This is about keeping American dollars at home instead of sending billions of dollars overseas for imported oil. This is about American self-reliance and ingenuity. This is about taking charge of our future – and changing that future for the better,” he said.

Pictured is Governor Dave Heineman (second from left) with Alan Tiemann, chairman of the Nebraska Corn Board; Lisa Lunz, chairman of the Nebraska Soybean Board, and gold medalist Curt Tomasevicz.

Todd Gibson, the director of the USB and a soybean farmer from Western Missouri’s Carroll County, says this will be his first professional tractor pull he’s attended, and he’s satisfied to leave his own equipment back home. “I’ll let the big boys take care of it.”

The pullers, many of whom are associated with agriculture, will be available for the public to meet and talk to about the performance of soy biodiesel.

NOTE: This updated version of this story changes the part about the tractors in the competition using biodiesel. While some of the tractors MAY use biodiesel, they’re not REQUIRED to do so. Much of the support equipment will still use soybean-based biodiesel in their operations.

The soybean checkoff-funded study found that the lower tax burden on Argentina’s soybean meal, oil and biodiesel creates a strong economic incentive for processing soybeans in Argentina. The country then exports these value-added products rather than whole soybeans. Argentina represents the third-largest soybean-producing country behind the United States and Brazil, but is now the biggest exporter of processed soybean products such as soybean meal, oil and biodiesel. Figures from the study show Argentina exports 99% of its soybean meal and 93% of its soybean oil in an average year.

LMC International, an independent economic and business consultancy serving agriculture, conducted the study for USB. It concluded that if the different tax schemes never existed, the United States would have invested more heavily in soybean crushing capacity with an eye on export markets, which would have boosted U.S. soybean prices.

Americans representing U.S. oilseeds interests point to Brazil’s elimination of its differential export taxes in the mid-1990s and the corresponding dramatic drop in that country’s share of value-added soybean meal and oil exports as proof of that the Argentinian lower tax burden is having an impact on world soybean oil markets.