Missouri's first public soy biodiesel pump began pumping fuel in March. Growers hope that biofuels will boost demand for soybeans and, in turn, boost farm-level profits.

The Conoco Convenient Food Mart #2 at 3714 W. Truman Blvd. in Jefferson City does good business. But the crowd on the first Monday in March called for extra pots of coffee. On one of the coldest mornings of the winter, farmers, politicians, commodity organization leaders and end users gathered there to dedicate Missouri's first biodiesel pump.

The benefits of biodiesel have been well tested by now. In mid-March, a Ford F-250 rolled into Washington, D.C., to commemorate its 10th anniversary as a biodiesel demonstrator: Its 300,000 miles testimony to biodiesel's utility.

The Missouri Soybean Merchandising Council purchased the checkoff-funded truck in 1992 to demonstrate the benefits and performance of biodiesel. The National Biodiesel Board estimates the United States consumes 55 billion gallons of petroleum diesel annually. The biodiesel industry seeks to replace a minor fraction of total diesel fuel sold--about 275 million gallons worth. That would be the equivalent of 183 million bushels of U.S. soybeans.

The new pump in Jefferson City will need to be replicated throughout the country to meet these goals.

"As the first B20 retail pump in Missouri, this event marks a major milestone for biodiesel distribution, which will help continue the momentum for increased awareness and support for this remarkable fuel," said Dale Ludwig, executive director of the Missouri Soybean Association. B20 is a blend of 20 percent by volume biodiesel with 80 percent by volume petroleum diesel.

Legislators with keen interests in farm issues were on hand to show support. U.S. Congressman Kenny Hulshof said that he hoped Missouri could develop a biofuel industry.

"It's essential to expand the use of biodiesel. It opens new markets for agriculture, creates jobs in our rural communities, reduces our dependence on foreign oil and is friendly to the environment," said Hulshof. "That's why I'm here today and plan to continue promoting biodiesel in Congress."

Along with Hulshof, Missouri Senator John Cauthorn, Rep. Denny Merideth and Rep. James Whorton offered comments--each with a tongue-in-cheek suggestion that development in biofuel plants be based in their districts.

Groups in Missouri are currently considering developing just such facilities. However, delays in the federal farm bill and energy bill, both with language that would benefit biofuels, have kept efforts in the nascent stage.

The Food and Agricultural Policy Research Institute (FAPRI) analyzed the impact of proposed federal legislation, which is known as the Renewable Fuels for Energy Security Act, S. 1006. Researchers estimated that soybean oil used in biodiesel production could increase more than ninefold, from 264 million pounds per year to nearly 2.5 billion pounds over the next decade.

• FAPRI researchers showed that growing demand for soy-based biodiesel could increase the price of soybeans by 17 cents per bushel by 2011. The increase in net farm income tied to a renewable fuel standard could hit nearly $1 billion per year by 2006 and jump to more than $3 billion per year by 2010, according to the FAPRI study.
• Much of the current demand for biodiesel is through fleet service, like state departments of transportation. A study conducted by the University of Missouri in 1996 examined the possible economic benefits from the construction and operation of a biodiesel facility in Missouri. The MU study showed the increase in tax revenues from the construction and operation of a 5-million-gallon/year biodiesel facility would offset any incremental costs of operating the Missouri Department of Transportation diesel-vehicle fleet on B20. n