Omaha, NE (Feb. 17, 2021) – Ag Processing Inc a cooperative (AGP) announced the Company’s support for the Iowa Biofuels Standard, a state legislative initiative that would support biofuel production and use in the state of Iowa. The legislation, introduced as Senate File 549, creates a state program that would establish biofuels standards for fuel sold in Iowa and provide tax credits and infrastructure support to biofuel blenders and retailers. The bill has the support of Governor Kim Reynolds and major agricultural associations and organizations.
“AGP supports and invests in Iowa biodiesel production,” said Troy Alberts, AGP Senior Vice President for Refined Oils and Renewable Fuels. “The Company recognizes the impact that biodiesel has on the demand for soybean oil in Iowa as it accounts for 85% of the feedstock. Increased use of biodiesel translates into higher soybean prices for farmers, economic development in rural communities, and reductions in harmful fuel emissions. This legislation further protects the industry against federal policy and political uncertainty by increasing demand for this important advanced biofuel in Iowa.”
The biofuels standard establishes a minimum level of biodiesel to be blended in the state’s diesel fuel pool, gradually increasing over time. Beginning in 2022, the legislation ensures that biodiesel comprises 11% of the diesel pool and provides tax credits for higher blends. The program expands to 20% biodiesel blends, or B20, in future years. The legislation also establishes new retail income tax incentives for fuel marketers and provides funding for biodiesel projects in the Iowa Renewable Fuels Infrastructure Program. Financial support for renewable fuels would also be made available from the Rebuild Iowa Infrastructure Fund.
About AGP
AGP (www.agp.com) is a leading agribusiness with primary operations as a major U.S. soybean processor/refiner producing and marketing soybean meal, refined soybean oil, and biodiesel. AGP businesses also include agricultural product trading in domestic and international markets and numerous U.S. grain elevator operations. With 2020 annual sales of over $4 billion, AGP is one of the nation’s largest cooperatives, and is owned by 149 local and regional cooperatives representing over 200,000 farmer-producers across the United States. Corporate headquarters are located in Omaha, Nebraska.
Contact: Matt Caswell, VP Member/Corporate Relations and Government Affairs | (402) 498-2279 | mcaswell@agp.com