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Farmer paints bleak picture for biodiesel without Tax Credit

A southwest Minnesota farmer lobbying for renewable fuels paints a bleak picture for biodiesel. 

Ron Obermoller of Brewster is in Washington, D.C. this week asking members of Congress to support the Tax Extenders Package that includes the Biodiesel Tax Credit.

“Between messing with the RFS and not getting the Biodiesel Tax Credit for the last two and-a-half years, there’s seven or eight plants that have closed. It’s kind of a dire state right now.”

Obermoller tells Brownfield the biodiesel industry has also been hit hard by small refinery exemptions issued by the EPA.

“You talk to some of these people (at biodiesel plants), they’re talking $30 to $40 million losses in a quarter. Their equity is gone, (and) if we can’t get some of this stuff straightened out by the end of the year I don’t know if the biodiesel industry will recover.”

Congressman Mike Thompson, a Democrat from California and chair of the House Ways and Means Committee’s subcommittee on select revenue measures, has introduced a proposal to extend the Biodiesel Tax Credit retroactively from 2018 to 2024.

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