Farley Biodiesel Plant Hits 500 Million Gallons

Western Dubuque Biodiesel's milestone comes as Iowa's biodiesel tax credits face expiration at the end of 2027.

Updated on Nov. 5, 2026 in Manufacturing

Vector-style editorial illustration of plain steel storage tanks and teal pipework beside a low processing building on open prairie, evoking Iowa's biodiesel production. — Western Dubuque Biodiesel reached 500 million gallons produced at its Farley, Iowa, plant as lawmakers weigh extending state biodiesel tax credits set to expire at the end of 2027. AI Illustration. Upload story photo >

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Should Iowa lawmakers extend biodiesel tax credits beyond their 2027 expiration?

Western Dubuque Biodiesel produced its 500 millionth gallon of biodiesel in October 2026, at its plant in Farley, Iowa, which opened in 2007. The plant can produce up to 45 million gallons a year from soybean oil.

Why it matters

The milestone highlights the role of Iowa's biodiesel industry in supporting farmers, truckers, and local businesses, while lawmakers weigh whether to extend tax credits that expire December 31, 2027.

The plant has 23 direct employees and 19 contract drivers, and contributed more than $145 million to Iowa's economy through 2025, not including construction. Whether lawmakers will extend the tax credits, set to expire December 31, 2027, has not been decided.

The players

Western Dubuque Biodiesel

A biodiesel producer operating a plant in Farley, Iowa, that has supplied fuel from soybean oil since 2007.

Iowa Biodiesel Board

An industry group representing Iowa's biodiesel producers that is pressing state lawmakers to extend the biodiesel tax credits.

The details

Western Dubuque Biodiesel produces biodiesel from soybean oil at its Farley plant, and its output supports farmers, truckers, restaurants, and soybean crush employees. The Iowa Biodiesel Board is urging lawmakers to extend the state's tax credits during the upcoming legislative session.

2007: Plant opened in Farley, Iowa.
October 2026: Plant reached its 500 million gallon milestone.
2025: Economic report measured Iowa biodiesel jobs and output.
December 31, 2027: Iowa biodiesel tax credits expire.

Market Landscape

Iowa's eight biodiesel plants have combined capacity above 400 million gallons a year, and Western Dubuque's 500 million cumulative gallons represent a meaningful share of that output over nearly two decades. The industry's continued growth in the state depends heavily on whether the state's tax credits are extended beyond their 2027 expiration.

If the biodiesel tax credits are not extended past December 31, 2027, the cost structure for biodiesel producers in Iowa could change, affecting the fuel supply chain that farmers and truckers rely on. Iowans watching fuel prices or local farm incomes should track the upcoming legislative session.

The takeaway

Iowa's biodiesel industry supports well over a thousand jobs and about $1.5 billion in economic output, so the fate of the state's tax credits matters beyond one plant. Readers interested in the policy outcome should follow the upcoming legislative session.