Donnell Rehagen Soybean Update

(Jamie) Welcome back to Farm Factor and the Kansas Soybean Update.
(Greg Akagi) This is the Kansas Soybean Update. It’s brought to you by the Kansas Soybean Commission. The Soybean Checkoff, Progress Powered by Kansas Farmers. Donnell Rehagen, CEO of the National Biodiesel Board is joining us. Donnell as we end 2016 into 2017 several things to talk about. One though about Biodiesel, as we go into 2017…just review 2016 on the Biodiesel industry. (Donnell Rehagen) Yeah, 2016 has been a great year for us. We are continuing to grow, seeing higher and higher volumes of biodiesel out in the marketplace. That’s what we’re all about! (Greg) What about the soybean prices, like many we have seen in this market? (Donnell) Yep, the markets have been down throughout 2016. (Donnell) They have been. But again, great news for biodiesel, we’re seeing a lot more biodiesel made, a lot more biodiesel sold, and that’s great for everybody, great for the soybean farmers as well. (Greg) The exposure of the industry and the value of what they get for biodiesel I think is still showing through. (Donnell) It’s huge, its huge. For biodiesel we show that the biodiesel impacts the soybean prices to the tune of 63 cents a bushel. And so that’s a very significant impactor for soybean prices and we’re proud to be part of that. (Greg) How does NBB work with the animal agriculture industry? (Donnell) We work with them as tightly as we possibly can. They are obviously interested in the same components that we’re interested in. Feed prices impact their business and oil prices impact ours. So we work very cooperatively with them. (Greg) It is and always has been a very close relationship with the friends in animal ag. (Donnell) Absolutely, you’re right. It definitely is a friendship and a relationship we want to continue to build on. (Greg) What are some of the goals you’re looking at for 2017? (Donnell) More biodiesel. We’re working on some policy initiatives that are going to be very important to our industry to continue growing the RFS and the tax credit. We’ve got some work left this calendar year to do on both of those issues; and so hopefully we’ll kick 2017 off on a great movement. (Greg) Do you feel optimistic those can get extended? (Donnell) Well, its going to be a lot of hard work. The tax credit is looming here in the lame duck congress, and they’re coming back to work next week, and I think their first job is to try to fund the government and then figure out what they want to deal with after that. We’re working hard to make sure one of those issues is the biodiesel tax credit. (Greg) But yet its hard for the producers and the manufacturers kinda to live year-by-year so to speak. (Donnell) Absolutely. And that’s one of the things we struggle with the most in our industry is the uncertainty of demand from year-to-year. The policies are critical for us, and having a little bit more longevity in those policies would be very important for us. And that’s the message we keep bringing to Congress. (Greg) Finally, how important is it to have partners like Kansas Soybeans to really support what you guys do at NBB? (Donnell) They’ve been great, great, great partners of ours for a long time. Not only sharing their resources but sharing their leadership and their knowledge of the ag industry and the energy industry. I can’t say enough good things about them. (Greg) Donnell Rehagen, the CEO of the National Biodiesel Board has been our guest on the Kansas Soybean Update. Its brought to you by the Kansas Soybean Commission. The Soybean Checkoff, Progress Powered by Kansas Farmers. Learn more at For Kansas Soybeans, I’m Greg Akagi.
(Jamie) Hope you enjoyed this week’s Kansas Soybean Update! Stay with us after the break for more Farm Factor as Kyle visits with Mike Stamm.

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