In late March, Senator Jim Talent stopped at the Columbia, Mo., MFA Agri Services to announce a renewable fuels package he is sponsoring in the U.S. Senate. Prior to announcing the plan’s details, Talent sat down with leaders of MFA Incorporated, MFA Oil and state-wide commodity group leaders for a briefing of current agricultural issues.

In a press conference after the briefing, Talent said that renewable fuels are at the crux of economic growth, central to jobs in the Midwest and a source of energy security and environmental quality. The senator’s proposed Renewable Fuels Standard would establish a renewable fuels mandate to be phased in over the next 7 years. The plan would begin by requiring 4 billion gallons of renewable fuels to be used nationally by 2006 and an increase to 8 billion gallons by 2012. The legislation provides for possible increases after 2012.

The legislation also establishes a tax credit for small biodiesel producers, allowing producers that make up to 60 million gallons of biodiesel per year to be eligible for a 10-cent-per-gallon tax credit. In addition, the legislation increases the current small ethanol producer tax credit, expanding it to those who produce up to 60 million gallons annually. Missouri’s farmer-owned ethanol plants at Macon and Malta Bend, which each produce more than 30 million gallons per year, no longer qualify for the small producer tax credit.