MSGA Calls on Senators Klobuchar and Franken to protect Minnesota Jobs

Biodiesel supporters devastated by move to eliminate tax incentive in jobs bill

MANKATO, MN (02/15/2010)(readMedia)-- The Minnesota Soybean Growers Association (MSGA) is calling upon Senators Amy Klobuchar and Al Franken to work quickly with Senate leaders to reinstate the $1 per gallon biodiesel tax credit in the first piece of legislation slated to pass the Senate in order to save nearly 2,000 jobs both directly and indirectly related to Minnesota's biodiesel industry.

Last week, Senate Majority Leader Harry Reid (D-Nevada) announced drastic changes to the bipartisan jobs bill which removed the biodiesel tax credit extension-vital to the downward-spiraling biodiesel industry-and other energy provisions, from the quickly-moving HIRE legislation.

"Minnesota soybean producers have a significant investment in the success of both our biodiesel industry and rural communities," says Bill Zurn, MSGA President and soybean producer from Callway, Minn. "MSGA was extremely disappointed by the elimination of the tax incentive extension because it is one way to immediately put people back to work in our state."

According to the National Biodiesel Board, biodiesel production has ground to a halt and more than 29,000 jobs have already been lost across the industry since the tax credit lapsed on January 1, 2010.

In Minnesota, most biodiesel production facilities continue to operate to meet the demands of the state's B5 requirement, but they are operating at a significantly reduced rate. More layoffs are expected if the credit isn't retroactively reinstated soon.

Though smaller plants, like FUMPA Biofuels near Redwood Falls, Minn., aren't feeling the same strains as many larger producers, there is concern for the shift this may cause in the industry.

"As financial losses for biodiesel plants mount due to the apparent lack of federal support, more facilities will be consolidated and it is likely that oil companies and refiners will be purchasing plants rather than maintaining the local ownership," said Chuck Neece, Director of FUMPA BioFuels.

The Minnesota Soybean Growers Association is a non-profit, farmer-controlled membership organization established in 1962. Its goal is to assure profitable soybean farming by monitoring government policies and supporting research and market development activities.