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Diesel vs. doughnuts
It’s Food Vs. Fuel 2.0, and this time it is diesel versus doughnuts.
Ag economist David Widmar, co-founder of Agricultural Economic Insights says soybean oil prices climbed from about 30 cents per pound to more than 70 cents per pound. And then the bakers got involved.
“The American Bakers Association went to the Environmental Protection Agency, to roll back some of those biodiesel mandates in the Renewable Fuels Standard,” he says.
He tells Brownfield biodiesel demand continues to increase as many states and private industries continue to put an emphasis on cleaner-burning fuels. “Biodiesel is kind of in the spotlight in its creating some different economics for the crushing industry,” he says. “But there’s also a lot of enthusiasm for new crush facilities being built and proposed and talked about moving ahead.”
Widmar says the increase in more soybean oil going toward biodiesel has been underway for several years – but has recently become more evident.
