Potential Economic Impact and Basis Analysis of a Soybean Crush and Biodiesel Facility near Crookston, Minnesota

On May 1, 2018, Minnesota’s state biodiesel mandate increased to 20 percent (B20) during the summer months. This means number two diesel (commonly used in trucking) must contain at least 20 percent biodiesel. Soybeans are a primary source for biodiesel, and Minnesota is a leading soybean producing state. However, the state does not currently produce enough biodiesel to meet the mandate.

Investors in Crookston, Minnesota have identified the potential for constructing a new soybean crush and biodiesel plant, primarily using soybeans grown in northwest Minnesota. University of Minnesota Extension, on behalf of the Crookston Housing and Economic Development Authority (CHEDA), completed an analysis of the economic and basis impact of the proposed new plant.