Let’s rewind to the early 2000s. Ethanol had already established itself, while biodiesel was just gaining traction. Ethanol had a head start, thanks in part to a reduced motor fuel tax that made it cost-competitive. That pricing advantage, strong farmer investment and a wave of ethanol plant construction in places such as Macon, Laddonia, Malta Bend, Carrollton and Craig helped ethanol secure its place in the fuel market.
Those investments paid off. Even after the tax break ended, ethanol continued to lower the cost of gasoline. Today, most gallons of gas sold in Missouri are blended with ethanol, and they’re cheaper than nonblended fuel.
Biodiesel followed a similar path, just a few years behind. In the early days, biodiesel had to be trucked or railed into Missouri, then distributed to local marketers. That changed in the mid-2000s with the construction of off-site blending facilities and — more importantly — biodiesel production plants across the state.
Once again, many Missouri farmers stepped up and invested their own money in the industry. Today, our state ranks second in the nation in biodiesel production. That investment jump-started local production, driving demand for Missouri-grown soybeans and supporting jobs across rural communities.
Federal policy gave biodiesel a lift, too. The Biodiesel Blenders Tax Credit, introduced in 2004, made biodiesel more price-competitive with conventional diesel. Then came the Renewable Fuel Standard (RFS) in 2005, which required fuel suppliers to blend renewable fuels into their products. Each gallon of 100% biodiesel earns a Renewable Identification Number (RIN) that can be sold, lowering the cost of blending and encouraging more use.
Fast-forward to today: The U.S. now produces about 2 billion gallons of biodiesel annually. But change is underway. The Blenders Tax Credit has expired, and it’s been replaced with a new program known as the 45Z Clean Fuel Production Credit. The rules for 45Z have yet to be finalized. Delays in rules and guidance have left the biodiesel industry with much uncertainty. Early projections suggest the new credit may cut up to 67% of the support for biodiesel.
As we enter another growing season, biodiesel use is down compared to prior years. That brings us to the key question: As a Missouri farmer and consumer, what can you do to support your industry and the crops you grow?
The answer is simple: Ask for biodiesel.
When you order fuel for your farm or business, request a biodiesel blend, like B20.
By doing so, you’re helping maintain demand for Missouri-grown soybeans, supporting 5,500 jobs across the state, providing $2 billion in economic impact and keeping fuel dollars circulating in the Show-Me State. Biodiesel also offers real performance benefits such as superior lubricity and higher cetane value than petroleum-based diesel fuel.
Missouri soybean farmers built this industry from the ground up. You grow the feedstock. You invested in the plants. Don’t let that momentum stall.
Support what you grow. Power your farm with biodiesel. Just ask for it.
James Greer was named senior vice president of supply and transportation for MFA Oil Company in 2021. He oversees a wide range of supply operations, including refinery output, pipeline shipments, propane procurement, terminal pricing, lubricant formulation and warehousing and more. He also collaborates with industry trade associations on policy matters affecting the business. Greer first joined MFA Oil in 1993 as a training agent after earning a degree in agricultural economics from Oklahoma State University and has held several leadership roles across Missouri and Oklahoma, steadily advancing through the company.
Originally from Texas and Oklahoma, Greer spent his summers on his grandparents’ farms in Missouri, developing a strong connection to agriculture and MFA Oil. His grandfather, a former board member from Marshfield, Mo., introduced him to the company early on, laying the foundation for his long-standing career there.
