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Indiana Soybean Alliance Welcomes Changes in USDA's Bioenergy Program
Wednesday, August 25, 2010
By Louise Roys

The efforts from the membership of the Indiana Soybean Alliance (ISA) to rally support for an important buyer of Indiana soybeans paid off last week.

Earlier this year, ISA's membership encouraged farmers, local businesses, and government leaders to submit comments to the U.S. Department of Agriculture (USDA) regarding the Advanced Biofuel Payment Program. The proposed rule released had a rural location requirement and a 51 percent domestic ownership provision. This domestic ownership provision excluded Louis Dreyfus in Claypool, Ind. - the nation’s largest and most efficient biodiesel producer - from eligibility.

ISA’s membership led the effort to submit a large amount of comments to USDA asking for changes to the rule. These comments were heard when a final rule was released on August 12, 2010.

“This is a huge victory for Indiana soybean farmers, we worked hard to get this facility located in rural Indiana to increase the profitability of the farmers in that area,” said Mike Beard, ISA Membership & Policy Committee chairman and farmer from Frankfort, Ind. “Louis Dreyfus has not only benefited the farmers delivering soybeans to its facility, but also the economy of the rural community of Claypool. Having a facility like Louis Dreyfus set up shop there truly is rural development.”

USDA will be issuing an amendment to its earlier notice and requesting applications from advanced biofuel producers at non-rural biofuel facilities and foreign-owned biofuel facilities.

This rule change helps to ensure farmers can benefit from the estimated 25-cent per bushel price increase that soy-based biodiesel has added to the value of soybeans.

“This is a step in the right direction,” said Beard. “We still have a large issue lingering out there regarding the biodiesel production tax credit, but we appreciate the efforts of ISA members in having our voices heard at USDA.”

Membership in ISA is voluntary and no soybean checkoff funds were used in this effort to get the USDA rule changed, added Beard.

“ISA would like to thank all members who submitted comments and raised awareness among other farmers to encourage comments,” said Mark Henderson, executive director of the Indiana Soybean Alliance. “It shows what a strong membership organization can do for soybean farmers. We also want to thank Congressmen Brad Ellsworth and Joe Donnelly as well as Senators Richard Lugar and Evan Bayh for helping with this effort.”

To become a dues-paying member of a membership organization making a difference for you in Indiana, fill out a membership application found online and mail it back to ISA, 5730 W 74th Street, Indianapolis, IN 46278. Those purchasing a three-year membership are eligible to receive a $100 discount on a future soybean seed purchase from a participating company. See the application form for more details.

For more information about ISA’s membership and policy efforts, contact Jared Coppess, ISA Membership and Policy Manager at 317-347-2797.

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