The Rural Voice, 2002-06, Page 34PUSH
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30 THE RURAL VOICE
deterioration in the flexible hosing
and seals of pre -1986 engines.
Further, with the exception of
concrete lined tanks, biodiesel can be
stored wherever fossil diesel fuel is
stored. It has a higher flash point,
handles like diesel and is safe to
transport.
The economic benefits of
increased biodiesel use are both
complicated and, at the moment, not
extensively investigated.
Economic studies in Iowa have
demonstrated that for every dollar
generated in that state's soybean
processing industry $1.50 is
generated in the service industry.
Dr. Dermot Hayes, an agricultural
economist at the University of Iowa
concluded that if the state was to use
a 20 per cent biodiesel blend (B20) in
one sixth of its state vehicles it would
cost an extra $400,000 to $500,000.
If this resulted in a new five million
gallon biodiesel plant the policy
would create more tax revenue than it
cost.
70 million gallons of
biodiesel could add up to
18 cents per bushel to the
price of soybeans alone
An economic model produced by
the America Food and Agricultural
Policy Research Institute concluded
that an annual demand for 70 million
gallons of biodiesel could add up to
18 cents per bushel to the price of
soybeans alone.
McLean points out that Canada
currently imports several hundreds of
thousands of metric tonnes of soy
meal a year despite what he refers to
as excess capacity in the crushing
industry. This dependence on
imported meal is partially fueled by
the inability of Canadian plants to
find adequate markets for soybean
oil.
Ken Bee, the former Chairman of
the Ontario Soybean Growers
Association, puts it quite simply:
"The crushing plants are geared to
the amount of oil they can move not
the amount of meal they can sell."
Both Bee and McLean are in
agreement that one of the major
economic benefits would be
increased sales of beans by farmers.