Ground Breaks On Iowa Biodiesel Facility

Work to begin on massive biodiesel plant in northern Iowa

A massive biodiesel plant to be built in northern Iowa is just the kind of project the new energy bill will help foster, said Sen. Charles Grassley, R-Iowa.

Cargill Inc. was to break ground Wednesday in Iowa Falls on the world's largest biodiesel plant, expected to churn out 37.5 million gallons of fuel a year. It will use soybeans, all bought from area farmers, said Bill Brady, spokesman for the Minnesota company.

Grassley said tax incentives included in the energy bill signed by [Bush] on Monday in Albuquerque, N.M., will spur the growth of the biodiesel industry and benefit the economy.

"This is good for the ag industry. It's good for economic development," Grassley said Tuesday. "It's good for good-paying jobs in our small communities in the Midwest.

These types of projects are great for our economy, and for the development of cleaner burning fuels.  The only reservation I have about these types of investments are the effects on smaller co-operatives and producers:
“I think it’s great that Cargill is entering the biodiesel market. It’s wonderful,” said Roy Arends, a director for the Iowa Soybean Promotion Board and farmer from Alexander, Iowa.

“Some might see this as competition for the farmer-owned biodiesel plants, but I see it as a good sign for the future. Cargill obviously thinks it’s going to be profitable long term or they wouldn’t be doing it.”

Iowa farmers have invested millions of tax form checkoff dollars in the development, production and promotion of soy biodiesel.

.... particularly when checkoff dollars are being paid to kickstart such projects.