Soybeans are one of Michigan's largest exports. The market brought in over $700 million in 2023, according to the United States Trade Representative.
The Michigan Soybean Association & Michigan Soybean Committee have been looking for ways to build a stronger domestic market within Michigan as farmers face trade uncertainty due to the Trump administration's ongoing trade battles.
This week, representatives for the two groups presented the idea for a new bill to the State House Agriculture Committee. If made into law, a tax credit would be placed on biodiesel options to give consumers an incentive to purchase the locally grown and produced fuel supplemented by soybean oil, crediting either two or seven cents per gallon depending on the fuel type.
Ben Steyer is the CEO of the Michigan Soybean Committee. While speaking to the committee, Steyer emphasized the need for a soybean oil market in Michigan due to the tariffs, and how this could also bring renewable fuel to the state as well.
"Michigan has an opportunity to create a complete local supply chain for locally grown soybeans that can be processed at Michigan facilities," Steyer said at the meeting. "With the meal feeding Michigan livestock and the oil being converted to biodiesel at Michigan plants. Then our diesel can then be distributed to Michigan fuel stations and used in diesel engines that are manufactured right here in the state of Michigan."
A report from the Environmental Protection Agency says "depending on the feedstock and production process, biofuels can emit even more GHGs than some fossil fuels on an energy-equivalent basis."
"When biodiesel was initially rolled out there were some issues with it. But since that time the standards they have to abide by the same ones that [traditional fuel] has to abide by as well," Steyer said. "I think if there were producers at that time back 20 to 25 years ago, if they were not producing a quality product, they're probably not still around today. So the producers that are around today have really done a great job of cleaning up any issues that would have been in place 1990 to 1995."
The bill is expected to be formally introduced to the state House this week.
