Landus Offers Soybean Premiums Through Biofuel Tax Credit Initiative

As Iowa farmers seek ways to increase the value of their soybean harvests, Landus has introduced a promising opportunity through a biofuel tax credit program. According to Blake Hoover, the Director of Soy Processing Sales and Marketing at Landus, this initiative aligns with a Canadian tax incentive for renewable diesel, allowing for a seamless flow of benefits from fuel users back to feedstock producers.

The program, tailored for new crop soybeans, features a soft enrollment deadline of September 15. Hoover emphasizes that this is not a conventional contract where farmers must commit specific bushels from designated fields. Instead, it presents a flexible opportunity for farmers to enroll their entire crop without the constraints of contractual obligations.

Craig Mouchka, the Director of Sustainability at Landus, notes that the premium farmers receive is influenced by both the scale of participation and the prevailing market dynamics. This ensures that premiums can fluctuate, reflecting the ebb and flow of market conditions.

For instance, Landus was able to distribute $750,000 in added premiums to farmers in 2024, and with the anticipated growth of the program, the financial benefits are expected to expand in the coming year. This initiative not only enhances the economic viability of soybean farming but also supports the broader renewable energy goals within the agricultural sector.