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Can Iowa Farmers Earn Cash by Filling Up With Biodiesel?

Iowa farmers were offered up to $500 for qualifying on-farm biodiesel purchases, but IRFA’s published terms specify 2025 purchases. Verify a new cycle before buying fuel expecting a credit.
From TheFinanceBase Team3 min to read
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Iowa farmers were offered a biodiesel credit of 25 cents per gallon for B11 and 50 cents per gallon for B20, up to $500. But this was a limited program credit—not a discount available at every diesel pump—and a 2026 application cycle has not been verified. As of October 8, 2026, the Iowa Renewable Fuels Association’s program page still specifies 2025 purchases, so confirm with IRFA that a new cycle is open before buying fuel expecting reimbursement.

What the Iowa biodiesel credit offered

The Iowa Renewable Fuels Association (IRFA) launched its On-Farm Biodiesel Credit Program in 2022 for Iowa farmers using biodiesel in an on-farm tank connected to an agricultural operation. Its historical advertised credit was 25 cents per gallon for B11 and 50 cents per gallon for B20, capped at $500 per diesel end user. The program required an application and qualifying proof of purchase; it was not an automatic reduction at the pump. IRFA’s program page lists the rates and receipt requirements.

B11 contains 11% biodiesel. B20 contains 20% biodiesel blended with 80% petroleum diesel, according to Successful Farming’s 2022 report. “B20 and above” appears in IRFA’s current page rate description, but that wording does not establish that every higher blend is suitable for every machine.

How the historical B11 and B20 credits compared

Blend Biodiesel share Historical credit Maximum Equipment approval
B11 11% 25 cents per gallon $500 per diesel end user across the program Check the equipment maker’s guidance; universal approval is not established.
B20 20% 50 cents per gallon $500 per diesel end user across the program Check the equipment maker’s guidance; universal approval is not established.

These rates and cap are historical program terms, not confirmation that an application can be submitted in 2026. A higher credit for B20 does not make it the right choice if the engine or fuel system is not approved for that blend.

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Is the program open in 2026?

A 2026 round is unverified. IRFA’s program page, checked October 8, 2026, still says purchases must be made in 2025. The same page invites applications but contains inconsistent date references in its receipt instructions. Separately, an IRFA board document from 2025 records support for continuing the program through the end of 2025. Neither the page’s continued availability nor its application prompt establishes a 2026 funding round or eligibility period.

Before purchasing fuel in expectation of a credit, contact IRFA and confirm whether a new cycle exists, its eligible purchase dates, remaining funding, receipt rules, and application process. The historical terms below should not be treated as current until IRFA confirms them.

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Who qualified under the published program terms?

IRFA’s published terms describe a statewide Iowa program for agricultural operations using biodiesel delivered to an on-farm tank. The program page lists Iowa farm delivery, agricultural use, applicants age 18 or older, an itemized receipt showing fuel type and gallons, and limited first-come funding. It also specifies a 2025 purchase date, which is why those criteria do not by themselves prove eligibility for any future cycle.

The 2022 program announcement described an online application and proof of purchase. For the current page’s stated receipt requirements, the receipt should document the fuel type and gallon count; the page also asks for delivery-address details. Confirm all required documents and dates directly with IRFA before relying on these instructions for a later cycle.

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What funding history says—and does not say

When IRFA relaunched the program in March 2023, it announced $45,000 in available funding. The association said the 2022 round had exhausted $35,000 in credits and reached almost 100 farmers. Those figures describe earlier rounds only; they do not establish present funding, current participation, or a 2026 deadline. IRFA also described awards as limited and first come, first served.

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Check equipment compatibility before choosing a blend

Biodiesel compatibility depends on the specific engine, fuel system, and model year. The historical campaign reported manufacturer approvals for some equipment, but it does not establish blanket approval across John Deere, Case IH, or other brands. Check the operator’s manual or ask the equipment manufacturer for guidance on the exact model and blend. Do not choose B20—or any higher blend—solely because its historical credit was larger.

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  • DUAL PHASE CHEMISTRY. Partitions both water and fuel phases for more effective and complete protection against microbes that cause contamination and corrosion. Prevents corrosion of fuel tanks and metal components caused by the acidic by-products of microbial growth.
  • EXTENDS FUEL FILTER LIFE. Excessive sludge accumulation, clogged fuel filters and expensive fuel polishing can shut down engines. Proactive use of a biocide prevents biomass accumulation in fuel tanks, extends fuel filter life and inhibits microbial influenced corrosion.
  • INCREASES LUBRICITY. As an added benefit, BioborJF has been proven to increase the lubricity properties of jet fuel, providing additional protection and reduced wear to fuel delivery components.
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