Fatty acid methyl esters, also referred to as biodiesel, have been determined to have a great deal of potential as substitutes for petro-diesel. In order to enhance productivity in the biodiesel production process, feedstocks were previously recommended to be anhydrous, with a free fatty acid content of less than 0.5%. In this study, the effects of several catalysts, methanol molar ratio, catalyst amount, and reaction time on the reduction of free fatty acid level were studied with a simulated feedstock consisting of 20% oleic acid in rapeseed oil. Ferric sulfate was selected as the best catalyst. Increasing the catalyst amount and methanol molar ratio is very effective in decreasing the acid value of the simulated mixture. Our results may provide useful information with regard to the development of more economic and efficient free fatty acid removal system.