What’s behind the big leap in crush? One word: green.
The use of renewable diesel is skyrocketing due to green initiatives by federal and state governments and companies to reduce greenhouse gas (GHG) emissions and save the planet. GHG emissions from renewable diesel and biodiesel are, on average, 80% lower than petroleum diesel.
Oil companies have found they can make a lot of green diesel by selling renewable diesel through various tax incentives and credits. Thus, the production capacity has increased by 86% over the past year.
Soybean oil is the most common feedstock used to make renewable diesel and has the greatest growth potential. This triggered the expansion of soybean milling.
The good news for farmers is that the eventual competition between soybeans and other crops for acreage will likely increase price floors for all commodities, especially soybeans and corn. Competition for soybeans among crushers will also improve baseline levels. All of this equals more green for farmers.
But with any growing industry, there are challenges. Existing biofuel refineries are worried about their future. Questions persist about whether there will be enough acres of soybeans and feedstock to support the growth of renewable diesel. And, perhaps the biggest concern, can the U.S. supply enough whole soybeans to big markets like China?
All of these game-changing topics, questions and more are covered in the DTN series, Cash in on Soy Crush.
To see the first story, go to Cash in on Soy Crush – 1 at: https://www.dtnpf.com/….
To see the second story, go to Cash in on Soy Crush – 2 at: https://www.dtnpf.com/….
To see the third story, go to Cash in on Soy Crush – 3 at: https://www.dtnpf.com/…
To see the fourth story, go to Cash in on Soy Crush – 4 at: https://www.dtnpf.com/…
To watch a video of an Iowa farmer explaining how soybean expansion is affecting his farm and small biodiesel refineries, go to: https://www.dtnpf.com/….
To listen to a Field Posts podcast on the subject, go to https://www.dtnpf.com/… and scroll down to “E99: Soybeans literally crush it.”
Matthew Wilde can be contacted at [email protected]
Follow him on Twitter @progressivwilde
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