Mike Pearson tells listeners how a piece of legislation called the Renewable Fuel for Ocean Going Vessels Act, could impact their bottom lines in Rural America.
At a hearing before the Senate Environment and Public Works Committee, lawmakers reviewed a bipartisan proposal to the Renewable Fuel for Ocean Going Vessel Act created by Nebraska and Minnesota legislators.
The legislation would allow biodiesel and renewable biodiesel used in ships to have renewable identification numbers or RIN under the renewable fuel standard.
This will put biofuels on a more equal foot with diesel and jet fuels making the production more attractive financially.
The bill could open a new market for farmers and biofuel producers.
Soybean oil, animal fats and used cooking oil are key feed stocks for biodiesel and allowing biodiesel vessels to keep the RFIN credits could boost demand.
Industry groups also noted that international standards have recently cleared the way for marine engines to run on blends of renewable diesel or biodiesel without costly retrofits.
For rural America, it could mean more demand for crops.
However, critics question whether or not biofuels can be supplied in big enough quantities at ports to make a real dent in marine emissions.
Others warn of logistical hurdles including blending tanks and storage tanks and distribute biofuels to vessels on tight shipping schedules.
Cost is also a concern. Biodiesel remains expensive and could push shipping fees higher for business and consumers.
Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.