AGRIBUSINESS: Tax Credit Reinstated And Extended
The biodiesel industry did well in weekend congressional negotiations. The tax credit was reinstated for 2012 and extended for all of 2013. It is approximately $1.00 per gallon.
The feedstock is not just vegetable oil, it also includes all kinds of animal fats and inedible corn oil resulted from the production of ethanol. The biodiesel industry estimates that it’s consumption of animal fat has raised the value of the average beef animal by $16.
Iowa is the largest producer of biodiesel in the country. Renewable Energy Group is the state’s largest producer with almost 20% of the total U.S. production capacity.