A new study funded by the "United Soybean Board (USB) and soybean checkoff reports that U.S. soybean farmers received an additional $2.5 billion in net returns over the last four years due to the biodiesel industry's demand for soybean oil. This demand added up to 25¢ in support for the per-bushel price of soybeans.
The Food and Agricultural Policy Research Institute at the University of Missouri says soybean oil will be used as the feedstock for approximately 54% of the biodiesel produced in marketing years 2009-2013.
In addition, the study found that higher demand for soybean oil led to an increased supply of soybean meal, resulting in meal prices dropping by $19-45/ton. “Any lowering of the price of inputs for the animal agriculture industry is a plus,” says Lewis Bainbridge, USB Domestic marketing Chair and soybean farmer from Ethan, SD.