|
National
Biodiesel Board Visits the National Grange To Discuss Renewable Energy Sources
Washington,
May 20, 2004 - Mark Palmer of the National Biodiesel Board recently spoke
to National Grange Legislative Fly-In 2004 participants about the benefits of
biodiesel and provisions in the Energy Bill that promote the use of biodiesel.
Palmer also discussed the benefits of displacing a surplus of soybean oil and
increasing a demand for soybeans. "For
over a decade, soybean growers have invested in research and development of a
biodiesel industry. Biodiesel offers the best potential for displacing large quantities
of surplus soybean oil that can result in low soybean prices," Palmer said. "Just
100 million gallons of biodiesel will displace 750 million pounds of soybean oil."
Palmer
also stressed that the U.S. produced 2.4 billion bushels of soybeans in 2003.
The average price per bushel in 2002 was $7.25. A 100 million gallon demand for
biodiesel would have increased the average soybean price to $7.42, adding $408
million to the total valve of the 2003 U.S. soybean crop.
"If biodiesel replaced just 1 percent of the 35 billion gallon per year highway
diesel market, it would create a demand for 350 million gallons of soybean oil
or 2.5 billion gallons of soybean oil using 250 million bushels soybeans," Palmer
said. "In 2003, the net farm income would have increased by more than $1 billion."
Industry researchers believe that soybean oil used in biodiesel production will
increase more than nine fold, from 264 million pounds per year to 2.5 billion
pounds over the next decade. The demand increase would send the price of soybeans
soaring by 17 cents per bushel by 2011. The
National Grange believes that imported energy and energy price instability threatens
prosperity in rural America. It advocates for the promotion of biodiesel, ethanol,
biomass and wind energies derived from American's family farmers. | 
