Study finds that biodiesel adds 25 cents per bushel to soy price and $2.5 billion in net returns to soy industry

In Missouri, the United Soybean Board released a study by Centrec Consulting Group, which concluded that US 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. The demand added up to 25 cents in support for the per-bushel price of soybeans, the study found.

Additionally, the study found that higher demand for soybean oil led to an increased supply of soybean meal, resulting in meal prices dropping by $19 to $45 per ton.

The Food and Agricultural Policy Research Institute at the University of Missouri says soybean oil will be used as the feedstock for approximately 54 percent of the biodiesel produced in marketing years 2009-2013. A summary of the study is available at unitedsoybean.com.

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