With ample supplies of reasonably priced feedstocks, a blenders’ tax credit, and fuel industry acceptance of the product, biodiesel producers in 2013 experienced the best profits since late 2011. Favorable profits led to a sharp increase in production in 2013. However, unsettled government policy issues cloud the industry’s future for the year ahead and possibly longer, and are causing uncertainty in the industry. In this article, we provide more detail on these developments and implications for the biodiesel industry.