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Shining Light on Farm & Food Policy for 20 Years.
Thursday, December 19, 2024
China is ending an export tax rebate for used cooking oil, a common feedstock for renewable diesel, in a move analysts say could spur higher prices and prompt U.S. biofuel producers to explore other oil sources.
Banning the use of foreign biofuel feedstocks such as used cooking oil for a new tax credit could result in retaliation against U.S. farm exports, Agriculture Secretary Tom Vilsack said Tuesday.
Biofuel and farming organizations across the country want USDA to dismantle mandatory combinations of climate-smart agriculture practices to qualify for biofuel tax credits, and the groups suggest moving to a simplified accounting system to propel the industry's growth.
The rising demand for renewable fuel and subsequent tax credits to incentivize production has led to a significant spike in imported feedstocks like used cooking oil and tallow, which some say could undermine the domestic oilseed industry and potentially allows some fraudulent materials to enter the market.
The renewable diesel boom driven by a slate of federal and state policies has brought with it a surge in demand for imports of animal fats and vegetable oils to be used as feedstocks that could continue growing in 2025 as tax credits shift to incentivize in-country production of the fuel.
Senate Ag Committee veteran Chuck Grassley sees a glimmer of hope for a farm bill in comments Georgia Democrat Raphael Warnock made to Agri-Pulse about reference prices.
