INVESTING CHECKOFF DOLLARS
Dave Walton
BIODIESEL BUILDING BLOCKS B I O D I E S E L ABY D DS VA LU E TO L I V E STO C K BETHANY BARATTA BY BETHANY BARATTA
L
ivestock farmers understand the value of soybeans as a high-protein source for their livestock. Likewise, soybean farmers realize the value of livestock in creating demand for their product. Both industries are supported by biodiesel production. Biodiesel is made from a diverse mix of feedstocks, including recycled cooking oil, soybean oil and animal fats. It is estimated that 13 percent of biodiesel and renewable diesel in the U.S. is made from animal fats. “Animal fats and livestock producers are really important to the biodiesel industry,” says Alan Weber, partner at MARC-IV. “Last year, it’s estimated more than 2 billion pounds of animal fats were used to produce biomass-based diesel (biodiesel and renewable diesel) in the U.S.”
18 | OCTOBER 2019 | IASOYBEANS.COM
Because of the use of animal fats drop values for carcasses, as well as for biodiesel production, the fuel increased prices received by cow-calf adds value to livestock carcasses and producers. A cow-calf producer would animal fat. have received approximately $20 per “During these times of suppressed head for each steer or heifer sold from grain and livestock prices, producers their operation. are looking for every “Cattle farmers in nickel we can, so the our state are farmerreturn to livestock from feeders, and that’s the biodiesel is significant straightforwardness right now,” says Iowa of Iowa’s production Soybean Association ag system,” says Matt (ISA) Board Treasurer Deppe, CEO of the Iowa Dave Walton, a soybean, Cattlemen’s Association. corn, cattle and sheep “They not only raise producer near Wilton. cattle, but they raise Matt Deppe Weber notes that crops, too. Value-added use of animal fats and is the key to the success tallows for biodiesel production of our producers, and biodiesel is one increased inedible tallow prices more way we can enhance value to by approximately 13 percent from our crop and livestock products.” 2009 to 2017, which led to increased Similar to the beef industry, use of
