Mailbag: Biodiesel Excitement

Organizations Applaud Governor, Legislature for Commitment to Renewable Energy

and Biodiesel in State Budget


October 24, 2007



Contacts:

John Blaska Jeff Pieterick Bob Karls

Landmark Services Cooperative WI BiodieselAssociation WI Soybean Association

(608) 358-5580 (608) 819-1367 (608) 274-7522 johnblaska@spwl.net jpieterick@npnrg.com karls@wisoybean.org



Passage of budget brings local soybean crushing facility closer to reality



MADISON - The passage of the Wisconsin 2007-09 state budget brings with it a $26 million renewable energy package that goes a long way toward making Wisconsin competitive in the area of biodiesel fuels. The Wisconsin Soybean Association, the Wisconsin Biodiesel Association and Landmark Services Cooperative today applauded the Governor and the Legislature for their support of these measures in the budget and their commitment to renewable energy in Wisconsin.



"We are thrilled that the Legislature has made such a significant commitment to the biodiesel industry in Wisconsin," said John Blaska, president of the Landmark Services Cooperative Board of Directors. "Thanks to the dedication of Governor Doyle and the efforts of State Sen. Jon Erpenbach, State Rep. Brett Davis, and State Sen. Bob Jauch, we are now one significant step closer to bringing Wisconsin's first soybean crushing facility to Evansville."



The $26 million renewable energy package includes infrastructure incentives for the distribution of biodiesel, a $4 million grant toward the development of a soybean crushing facility and an income tax credit for biodiesel producers in Wisconsin.



Landmark recently announced it will match any investment made by the state toward a soybean crushing facility in Evansville, up to $4 million. Located in the heart of soybean country, Evansville is a geographical gem for the project, with its existing storage facilities and transportation infrastructure, and the construction of North Prairie Production's 45-million gallon per year biodiesel plant already underway. The addition of a soybean crushing plant here will add substantial value to the state's agricultural endeavors by cutting transportation costs and increasing soybean production, potentially bringing Wisconsin an additional $235 million in revenue and savings.

"The benefits of a local crushing facility will impact not only all of our state's 12,000 soybean farmers, but also many other agricultural producers throughout the state," said Bob Karls, executive director of the Wisconsin Soybean Association. "By stopping the flow of grain out of state, farmers will no longer lose profits to transportation costs and more soybean meal will be available for our dairy livestock, which is a perfect fit for our growing dairy industry."



The push for support of the biodiesel grant and incentive package during the budget process has largely been led by the Wisconsin Soybean Association (WSA) and the Wisconsin Biodiesel Association (WBA). Wisconsin soybean farmers have been working for 15 years to bring a soybean processing facility to the state. While Wisconsin is the 13th largest soybean producer in the country, it is the only one of these states without its own soybean processing facility.



"It is difficult to envision a more concrete example of the way in which Governor Doyle's pursuit of a renewable energy bio-industry could create more positive economic impact for the state," said Jeff Pieterick, president of the Wisconsin Biodiesel Association. "The passage of this renewable energy package provides substantial infrastructure that supports the bottom line for agricultural producers throughout Wisconsin."



Landmark Services Cooperative is the largest agricultural supply cooperative in Wisconsin, with more than 15,000 members and annual sales in excess of $225 million.



The WSA is a progressive organization devoted to bringing together all persons interested in the production, marketing, distribution and utilization of soybeans and soybean products. For more than 30 years, the Wisconsin Soybean Association has been working to build valuable relationships between growers throughout Wisconsin, while focusing on the promotion of Wisconsin soybeans. Formed in 1972 with 200 members, the WSA currently has more than 1,200 members. The Wisconsin Soybean Marketing Board represents the state's 12,000 soybean farmers to promote the development of the soybean industry.



The Wisconsin Biodiesel Association (WBA) was founded in December of 2006 and is a membership trade organization that promotes the commercial development, production, marketing, distribution and utilization of biodiesel and other renewable biofuels.