Value-added has been an agricultural rallying cry for more than a decade. All of us involved in producing commodities know the worth of value-added items in the marketplace. In fact, you'd be hard pressed to find agricultural opposition to enhancing the value of grains, milk products and meats. But traditional agriculture has a tough time breaking out of the commodity economy. Fortunately, agricultural organizations devote time, attention and money to helping farmers do just that. The Corn Growers and the Soybean Association (both statewide and nationally) continue to explore and develop marketable strategies to bring additional value to traditional products.

Ethanol is the obvious example. But right now, biodiesel made from soybeans looks to have the potential to equal or even exceed ethanol in the value-added arena. That's because of the tremendous potential of the diesel market (55 billion gallons annually in the United States) and because biodiesel offers benefits across the spectrum: from farmers to consumers to government.

Biodiesel contains no petroleum but can be blended with petroleum diesel. It can be used in diesel engines without modification other than simple maintenance tasks. Pure biodiesel can be used as a fuel, but blends with petroleum diesels are most common. Blending percentages vary. The standard seems to be 20 percent biodiesel and 80 percent petroleum diesel. It's referred to as B20. But most purchases are of a lower mixture.

The National Biodiesel Board is an organization created to bring together varied interests concerning the new fuel. The board is a national trade association founded in 1992 by state soybean commodity groups. Over the past 10 years, the biodiesel board has focused on coordinating research and development in the United States. The organization is based in Jefferson City, Mo. Its mission is "to increase the demand of commercially produced biodiesel in the United States through education, communication, and quality assurance programs and by serving as the national coordinating entity and clearinghouse of information."

These efforts are beginning to pay dividends. A 2001 USDA study found "an average annual increase of the equivalent of 200 million gallons of soy-based biodiesel demand would boost total crop cash receipts by $5.2 billion cumulatively by 2010, resulting in an average net farm income increase of $300 million per year." The net effect would be a 17-cent annual increase in the price per bushel of soybeans during the 10-year period.

Just as importantly, the U.S. Congressional Budget Office and USDA singled out biodiesel as the least-cost alternative fuel option for meeting EPA compliance requirements. EPA found excellent qualities inherent in biodiesel when performing agency tests on the fuel. According to EPA findings, B20 reduced total hydrocarbons up to 30 percent, carbon monoxide 20 percent and total particulate matter 15 percent. Biodiesel is nontoxic, biodegradable and 10 times less toxic than table salt. It also biodegrades as quickly as sugar.

In terms of energy balance, the ratio stands in the neighborhood of 3.24 to 1. In other words, for every unit of energy employed to produce biodiesel, 3.24 units of energy are created. That's the highest energy ratio of any fuel on the market.

MFA Oil Company was an early and enthusiastic supporter of biodiesel. In 2002, MFA Oil sold 149,454 gallons of B100 (pure biodiesel) and 2.9 million gallons of biodiesel blends. That's the equivalent of more than 20 transport truck loads of B100 (7,200 gallons per load), 99,636 bushels of soybeans (1.5 gallons per bushel) and 2,490 acres of soybeans (40 bushels per acre). Biodiesel is available at 26 MFA Oil Petro-Card locations, and 58 MFA Oil bulk plants sell it.

MFA Oil Company officials are quick to say they believe in supporting America by supporting the American farmer. And selling biodiesel helps all of us do both. Learn more about biodiesel by visiting the National Biodiesel Board Web site at www.biodiesel.org. While you're there, I encourage you to sign up as an individual or as an organization. In early February, the organization had more than 750 individuals and 275 organizations in support. I know, because MFA Incorporated is one.

MFA Oil's new president
Dale Creach, who has served as president of MFA Oil Company since 1981, stepped down as president at the end of this past year. He'll stay around in an advisory capacity and take the lead on various projects. I count Dale Creach as a friend and respect his leadership and his many contributions to the industry since his start at MFA Oil in 1967.

MFA Oil's board named Jerry Taylor as the new president effective Jan. 1, 2003. Jerry began with MFA Oil in the early 1980s and steadily rose through the ranks. He is a highly qualified individual who understands the traditions of the cooperative and will serve with distinction. Here at MFA Incorporated, we wish him well.

For the record, MFA Oil and MFA Incorporated are two separate and distinct organizations. We were both founded by the same individuals, and for many years we shared corporate board members. But we've always worked together cooperatively.