WASHINGTON –A bills slow move through Congress could hurt Kansas soybean farmers, according to the National Biodiesel Board.
Kurt Kovarik, Vice President of Federal Affairs with the National Biodiesel Board, told Kansas Farm and Ranch Radio,”Unfortunately I’m seeing a lot of inaction and inability by congress to act on important policy matters.”
Kovarik is particulary irritated that a blender’s tax credit has not been approved by congress. This tax credit has been in limbo since the beginning 2018.
“We are working under 16 months of uncertainty and unpredictability as to whether that tax credit is going to com back and when it’s going to come back.”
House Bill 2089, the Biodiesel Tax Credit Extension Act of 2019, would reinstate the tax credits for the biodiesel industry. The bill has 39 cosponsors including Kansans Rep. Steve Watkins and Rep. Roger Marshall. Even with all of this support, the bill has only been introduced to the House and then sent to the Ways and Means Committee. No other action has been taken at the time of this report.
According to Kovarik, a lack of federal backing means biodiesel producers have been shutting their facilities. This lack of demand could hurt soybean producers since biodiesel production adds around 60 cents a bushel.
“As our demand reduces because of lapse in federal policies that support us, that means less bean stock and less value in farmers’ pockets.”
For more information from the National Biodiesel Board, visit www.biodiesel.org
You can view the full interview by using the video player above.