The Ohio Soybean Association is urging state lawmakers to pass a biodiesel tax credit, a measure the group says could expand Ohio's renewable fuel market as soon as 2027.

Brandon Kern, deputy executive director of the association, says legislators are currently considering proposals that would incentivize biodiesel production across the state. The organization has thrown its support behind the legislation in the current session.

"Bio-based diesel is actually cheaper than petroleum-based diesel right now," Kern says. "It gives us another option."

That price relationship sits at the center of the association's argument. If bio-based diesel is already competitive with petroleum product at the pump, Kern and the group contend that a production tax credit would sharpen that advantage and pull more demand toward the soybean-based fuel. More biodiesel production in Ohio would, in turn, channel additional demand into the state's soybean crush market.

The timeline matters for growers watching the policy calendar. Kern says the proposals now before lawmakers could take effect in 2027, which gives the association a runway to build support before any credit begins shaping investment decisions in biodiesel plants, crush capacity, and feedstock purchasing.

For Ohio soybean growers, the stakes are straightforward. Biodiesel and renewable diesel are major domestic outlets for soybean oil, and demand from the fuel sector feeds directly back into the price growers receive at the elevator. A state-level credit layered on top of federal renewable fuel policy could strengthen that demand signal within Ohio specifically, keeping more of the value chain — crushing, production, and blending — inside the state.

The association's push also reflects a broader positioning among soybean grower groups, which have leaned into renewable diesel and biodiesel markets as structural demand drivers for the crop. Policy incentives have been central to that strategy, and Kern's comments signal that Ohio's growers intend to press for state-level tools rather than rely on federal programs alone.

The proposals remain under consideration, and their final form — credit size, eligibility, and effective date — will determine how much additional biodiesel production Ohio actually sees. Kern points to the current price advantage of bio-based diesel as evidence the market is ready; the tax credit, in the association's view, would convert that opening into durable growth for the state's renewable fuel sector heading into 2027.