Biofuels-Backing Farmers Bring Bacon
Published: Friday, February 21, 2025
There's no sugar coating it: Farmers and lawmakers love bacon, especially candied bacon. Last Wednesday, there was no shortage of bacon on the second floor of the Indiana Statehouse, as the Indiana Soybean Alliance and the Indiana Corn Growers hosted their annual legislative breakfast, known as The Bacon Bar.
Approximately 300 farmers, lawmakers, government officials—and even the governor and lieutenant governor—munched on the savory breakfast food while discussing legislation that would benefit the corn and soybean industries.
"This is one of my favorite events," said Denise Scarborough, ISA chair. "It's great to see so many elected officials. The whole Statehouse smells like bacon when you walk in, and it's great to have so many other industry stakeholders here at this event."
The bacon came in many forms: pork, beef and turkey, along with candied bacon and peppered bacon.
Scarborough and other farmer-leaders like Brian Warpup of Warren and Steve Phares of Albion all said they were advocating for SB 254, also known as the Biofuels Tax Credit Bill. The farmers said the bill would encourage higher blends of ethanol and biodiesel through a tax incentive for fuel retailers in the state. Fuel retailers would receive a 5-cent tax credit for each gallon of gasoline blended with more than 10% of ethanol. Retailers who sell biodiesel will receive a 5-cent tax credit for fuel with a 5-10% blend, a 10-cent tax credit for blended fuel of 10-20%, and an 18-cent tax credit for blends of more than 20% biodiesel.
According to Helena Jette, biofuels director for ISA and ICGA, E85—containing 15% ethanol and 85% gasoline—sells for about 10 to 15 cents less than regular blends. If SB 254, authored by Sen. Brian Buchanan (R-Lebanon), were to become law, consumers would save $11.9 million in annual fuel costs.
According to an ISA handout, SB 254 would boost farmer income by $117.9 million annually, due to the increased demand for corn and soybeans as biofuels.
"Anytime we can use more of our product, anytime that we can promote our product, through liquid fuels like biofuel, it only enhances the bottom line for Indiana farmers," said Warpup, who serves as chairman of ISA's membership and policy committee. "It makes our corn and soybeans a more valued commodity."
In addition, Warpup said the tax credit would serve as a buffer should there be a sudden decrease in exports due to a trade war. He pointed out that 68% of soybeans produced in Indiana are exported overseas and that SB 254 would help reduce the soybean industry's reliance on exports.
By all accounts, lawmakers loved the all-you-can-eat bacon bar. The Senate also loved the biofuels bill, passing it last Tuesday by a wide margin. The bill now advances to the House.
Two other bills are of concern to the corn and soybean farmers. SB 461 would clarify the Grain Indemnity Program, and HB 1192 would change how farmland is assessed.
Scarborough said the grain indemnity bill, authored by Sen. Jean Leising (R-Oldenburg), would bring clarity to the requirements for the board and chairperson in regard to meetings and confidentiality. The bill would also require the use of a manager or managing firm when there are claims made against the fund.
Scarborough said the changes aren't major and are intended to "keep our farmers protected."
Leising, who stepped out of a committee hearing to meet with reporters, said the indemnity fund currently has a balance of $33 million.
"It's really farmers' money," she said. "They are the ones who contributed to the fund, and they won't have to contribute again unless that fund falls below $20 million."
The bill passed the Senate by a margin of 44 to 4. It now moves to the House for consideration.
Regarding farmland assessments, HB 1192, authored by Rep. Kendell Culp (R-Rensselaer), would amend the six-year rolling average calculation and the capitalization rate percentage under the statewide agricultural land base rate determination.
Higher assessments are the main driver of higher property taxes for rural landowners in Indiana. Within the last three years, the assessed value of agricultural land in Indiana has gone up 63%, according to Culp.
"As we all know, we don't really want any higher increases any more than the fair amount," Scarborough said. "I think a fair taxation is out there somewhere. We just have to get to a conclusion for it. If you think about it, farm ground isn't using any of the amenities that a house is. So, we don't really need fire protection, we don't need police protection."
HB 1192 has been referred to the House Ways and Means Committee.
Leising also commented on another piece of legislation relating to property taxes. That bill, SB 1, would reduce property taxes for rural landowners.
"The fact is that property taxes are higher than any of us would like, whether we just own a home, a farm or a business," said Leising, who is a farmer. "The governor introduced language that became SB 1. I can tell you that would have made property taxpayers very happy. However, the people that it doesn't make happy are cities, our towns, our counties and, very frankly, our schools."
She said cities are concerned they won't be able to afford police and fire protection.
"It's a serious issue," she said.
SB 1 was amended last week by the Senate's Tax and Fiscal Committee.
"I think that bill will be discussed to the very end of the session," she added.
Also attending the legislative breakfast was Jeremy Mullins, commercial manager for the Louis Dreyfus Commodities plant in Claypool. The plant crushes 105 million bushels of soybeans every year, producing a variety of products including soymeal, soybean oil, biodiesel and glycerin.
"We're working on some stuff here in the state of Indiana to help support biofuels and biodiesel," he said.
He said the representatives and senators were open to the advocacy efforts from farmers and soybean industry officials like himself.
"They want to help farmers," Mullins said. Addressing the biofuels bill, he said, "I think a lot of them need to be educated. It's not on their radar."
The soybean industry is really humming right now, with a record crush amount and a lot of expansion. But Mullins said there is some uncertainty going forward, especially with federal policy changes.
One example is a biodiesel tax credit that expired Dec. 31 of last year. Called 45Z, it was part of the Inflation Reduction Act of 2022 and was meant to encourage the reduction of greenhouse gas emissions. However, Mullins said with the new administration coming in, it's unclear whether it will be renewed or discontinued.
"That's where it's tricky," Mullins said. "It's a whole new tax code, and it's a new administration. That uncertainty is tough."
The Louis Dreyfus plant in Claypool is producing a record amount of soybean meal.
"At the end of the day, we're making chicken feed for chicken farmers—and hog farmers too," Mullins said. "We don't want to leave them out. And ducks, for us, too. We have a big duck farm near us."
He said Louis Dreyfus is constructing a new soybean plant in northwestern Ohio. He said the new plant won't compete with the Claypool plant for soybeans, but Mullins said growers here should notice an improved basis.
Two surprise guests showed up at the legislative breakfast. Gov. Mike Braun and Lt. Gov. Micah Beckwith visited with farmers and soybean officials. Beckwith's plate was loaded with bacon as he moved around, fielding questions from farmers, soybean officials and reporters. As the secretary of agriculture with very little farming background, Beckwith has a steep learning curve. However, he doesn't see his lack of farming experience as a problem.
"One of my strengths is being a salesman in selling things I believe in," he said. "I highly believe in Indiana agriculture. I believe it's the backbone of our economic house here in Indiana. It's one of the best people groups that you'll find anywhere, and so my job is to get out and sell it to the nation and sell it to the world. And I can do that very well."
The annual Bacon Bar is designed to show lawmakers the interconnected nature of three Hoosier farm commodities: corn, soybeans and pork.
"They (ISA staff and farmers) are very clear that when we're eating bacon . . . that it was the soybeans that fed the pigs," Beckwith said. "They said, 'You're eating that (bacon) because of our soybeans, so you're welcome.'"
During his brief time as lieutenant governor, Beckwith said he has learned a lot about Indiana agriculture.
"Soybeans are a huge part of our industry, that and corn," he said. "Our ag world—I've just been blown away with how many different types of industries agriculture touches."
When asked to summarize the requests he was hearing from farmers, Beckwith said that funding is a key issue. Farmers want more funding for the Indiana State Department of Agriculture, other ag agencies and ag programs.
"ISDA does a great job on a very low budget," Beckwith said. "Comparatively, our budget, per capita, is very small when it comes to the other states around us in agriculture. They have far more resources in their ag departments, but we keep up and actually do better on less. So, if we can fund them even a little bit more, it's gonna just be like adding rocket fuel to the ship that's already flying. I think it'll take us to even greater heights."
He said he intends to make the case to both lawmakers and the governor that ISDA should be "properly resourced."
Just like the bacon served to lawmakers, some government programs have a lot of fat while others are already lean.
"We're going to do our part to cut back," Beckwith said, adding that those cuts shouldn't come at the expense of farmers and the state's agriculture sector. "That's probably No. 1 on our job (list), just making sure that if we're cutting, we're really, truly cutting fat and not cutting into the lean meat that we need."
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