Ohio Soybean Association backs biofuels bill

Ohio soybean growers could soon see a revival of local bio-based fuel markets under new state legislation praised by agricultural leaders.

The Ohio Soybean Association (OSA) announced its strong support for House Bill 1036, newly introduced legislation designed to restore biomass-based diesel production to the Buckeye State through a targeted production tax credit.

Introduced by state Rep. Bob Peterson, R-Sabina, and state Rep. Roy Klopfenstein, R-Haviland, the measure seeks to authorize a nonrefundable tax credit for producing biodiesel and renewable diesel within Ohio. OSA worked with both representatives to ensure this bill will have the maximum benefit to soy-based biofuel production, providing markets for Ohio soybeans that have not existed since biodiesel production left the state in 2022.

“I want to thank Reps. Peterson and Klopfenstein for their work to introduce this bill,” said OSA President Bennett Musselman, a soybean farmer from Pickaway County. “Not only will this bill help farmers build new markets for their soybeans, but introducing more biofuels production in our state will enhance the U.S. energy sector and help prevent the diesel fuel market from being so volatile.”

The legislative push arrives during a period of sustained pressure on commercial transport costs. Average diesel prices in Ohio are hovering around $6.29 per gallon, creating a heavy burden for freight, agriculture, and logistics operators. Proponents point to neighboring Midwestern states with established biofuel sectors as evidence of potential savings; in Missouri, wholesale B50 fuel blends containing 50% biodiesel have recently traded at prices more than $2 cheaper per gallon than conventional diesel.

State leaders emphasize that recent regional investments in soybean processing infrastructure have set the stage for a successful biofuel comeback.

“The additional investment in crush we’ve seen in recent years from companies like Cargill and Louis Dreyfus Company have really changed what is possible for soy-based biofuels production in Ohio,” Klopfenstein said. “We will have plenty of soybean oil to use for biodiesel and renewable diesel production, which makes now the perfect time to bring this kind of manufacturing back to Ohio.”

Beyond farm-gate demand, supporters highlight substantial multi-industry economic impacts across the state. A recent economic analysis by S&P Global projects that constructing and operating just one 60-million-gallon biodiesel facility in Ohio could generate roughly $5 billion in cumulative economic output by 2040. That output translates to an average annual economic impact of $362 million across both construction and operational phases.

“These numbers validate what we already know to be true; the impact of biodiesel production reaches far beyond agriculture,” Peterson said. “This bill is good for our farmers and rural communities, but it also creates opportunities for Ohio’s trucking, rail and marine industries, strengthening our economy as a whole and lowering costs for all Ohio citizens.” House Bill 1036 has been officially assigned to the 136th General Assembly, where it awaits committee referral. If enacted, the nonrefundable tax credits would amend sections of the Ohio Revised Code to incentivize local processors to refine Ohio-grown soy oil into commercial fuel.