Iowa Biofuels and the Fight for Market Certainty

In this episode of the Iowa Ag Podcast, host David Geiger speaks with Grant Kimberley, Executive Director of the Iowa Biodiesel Board, about the current state of Iowa’s biodiesel industry and the evolving federal policies that influence it.

Grant outlines Iowa’s leadership in biodiesel production, noting the state’s strong soybean processing capacity and its history of farmer-led investment in renewable fuels. While ethanol often receives more public attention, biodiesel plays a major role in commercial transportation, agriculture, rail, marine shipping, and other diesel-dependent sectors. Beyond value-added agriculture, biodiesel contributes to rural jobs, national energy diversification, and reduced greenhouse gas emissions.

A central focus of the discussion is the 45Z Clean Fuel Production Tax Credit. Grant explains how the program ties tax incentives to carbon intensity scores calculated through lifecycle models, potentially rewarding both fuel producers and farmers who adopt conservation practices. However, with USDA guidance and GREET model updates still pending, uncertainty remains about how farmers might directly benefit and what record keeping may be required.

The conversation also touches on Renewable Fuel Standard volume levels, which have been set below production capacity in recent years, contributing to market strain. With row crop farmers facing multiple years of tight margins, expanded biofuel demand could provide meaningful support to commodity prices.

Grant emphasizes that while energy policy can be complex, biodiesel’s impact is tangible: stronger rural economies, diversified fuel supplies, and additional demand for U.S. agricultural products. As regulatory clarity develops, the industry is watching closely to determine how these policies will shape the next phase of Iowa’s biofuel sector.