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Rick Worthington Tax Credits Could Help Farmers
by Rick Worthington, click here for bio

Program: Farm and Ranch Report
Date: June 07, 2019

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Soybean farmers are still struggling to make ends meet. Tariffs with China has put a hurt on finding a solid market for soybeans in particular.

The American Farm Bureau Federation is asking lawmakers to reinstate a package of tax credits that expired at the end of 2017, which could help - especially soybean farmers.

Pat Wolff is with the Farm Bureau and says they are looking to reinstate tax credits for both biodiesel and short line railroads.

“Biodiesel is a big market for soybeans. The fact that it’s expired has put the brakes on the development of new biodiesel plants and has curtailed biodiesel production. The second tax credit, farmers depend on the short lines to get their products to market, and this has slowed down the railroad’s ability to keep up and maintain their tracks.”

Noting the downturn in the farm economy, Wolff says the biodiesel tax credit would help support a $2.5 billion sector of agriculture.

“Biodiesel production is estimated to add 60 cents to the value of each bushel of soybeans, that’s $35 an acre. So, reinstating the biodiesel tax credit to expand and maintain biodiesel production is especially important.”

Wolff says there’s a bipartisan bill in the Senate to reinstate the credits, with an expectation of a similar bill in the House this summer.

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