JEFFERSON CITY, Mo. – Missouri Soybean Association (MSA) Policy Chairman Ryan Wilson released the following statement in response to the Senate Finance Committee’s proposed language for the Section 45Z clean fuel production tax credit:
“Missouri soybean farmers were encouraged by last week’s EPA announcement supporting increased domestic biofuel volumes. The move was a clear signal that American-grown fuels are critical to our energy future — and it delivered real momentum to rural economies and farmgate prices.
That’s why the proposed language released by the Senate Finance Committee for the 45Z tax credit is deeply disappointing. Allowing foreign feedstocks, like imported used cooking oil from China, to qualify for U.S. tax incentives — up to 80% of the value of the tax credit — is out of step with the Trump administration’s agenda. The Senate Finance Committee’s approach shifts taxpayer dollars away from Missouri farmers and into the pockets of foreign suppliers.
At a time when Missouri farm families are facing lower commodity prices, inflation and uncertainty, we should be strengthening our investment in American-grown fuels — not subsidizing foreign competition. These tax credits are designed to support rural jobs, domestic energy security, and the farmers who grow the crop. Allowing foreign feedstocks to receive up to 80% undermines those goals.
We do appreciate that the Senate draft removes outdated indirect land use change penalties — which have long been based on flawed assumptions and unfairly penalized U.S. soybean production — and the extension of the transferability provision. These are positive steps toward recognizing the sustainability of domestic agriculture.
Still, Missouri soybean farmers need more than symbolic wins — we need strong, enforceable policies that prioritize homegrown feedstocks and delivers on the promise of rural investment. We urge Missouri’s congressional delegation to ensure that the final version of the 45Z tax credit puts American producers first.”
Missouri ranks among the top states in biodiesel production. In 2024, the state used approximately 1.5 billion pounds of soybean oil to produce biodiesel — supporting one of the largest biodiesel user fleets in the country. While biodiesel is just one market for Missouri-grown soybeans, it remains a vital driver of in-state demand, job creation and long-term sustainability.