Farmers Applaud EPA’s Historic Biofuel Proposal

The U.S. Environmental Protection Agency (EPA) has proposed record-breaking Renewable Volume Obligations (RVOs) for 2026 and 2027 under the Renewable Fuel Standard (RFS), marking a significant step forward in U.S. energy policy and a substantial victory for American farmers and the biofuels industry.

The proposal includes a sharp increase in biomass-based diesel requirements, rising from 3.35 billion gallons in 2025 to 5.61 billion gallons in 2026. In total, refiners would be required to blend 15 billion gallons of conventional biofuels in both 2026 and 2027.

“This is a huge win for U.S. farmers and rural America,” said Rusty Goebel, President of the Ohio Soybean Association and a Williams County farmer. “Thirteen percent of our bushel price comes from the biofuel industry, and this proposal strengthens a crucial market for soybean oil.”

Several state soybean associations, together with national partners like the American Soybean Association and Clean Fuels Alliance America, initially advocated for 5.25 billion gallons of biomass-based diesel—an amount that the EPA significantly exceeded in its proposal.

The announcement also includes a key provision to discount Renewable Identification Number (RIN) credit values for foreign fuels and feedstocks, effectively prioritizing American-grown products like soybean oil and ethanol. Under the proposal, foreign-produced biofuels and feedstocks will receive only 50% of the RIN value compared to domestic counterparts.

“We are creating a new system that benefits American farmers while mitigating the impact on gas prices and ensuring the continued existence of liquid fuels,” said EPA Administrator Lee Zeldin. “We can no longer afford to continue with the same system where Americans pay for foreign competitors.”

“President Trump recognizes how important the RFS is for American corn and soybean farmers. This move by Administrator Zeldin is the boldest proposal ever and will provide certainty in a much-needed market for our producers while delivering lower prices at the pump for consumers. USDA and EPA have never been more aligned on the need for more American grown biofuels.

“This is the highest ever Renewable Volume Obligation and it sends a strong signal to the U.S. biofuels industry that President Trump has their backs and gives them the incentive to invest in American products for American consumers and to export around the world,” said Secretary of Agriculture Brooke Rollins. “As the Trump Administration expands the domestic market for biofuels, at USDA we are working to break down tariff and non-tariff barriers for our American grown biofuels. President Trump’s landmark deal with the U.K. secured zero tariff access for over $700 million in ethanol exports. Not only can we be energy independent, we are unleashing American energy dominance abroad.”

The proposal comes during the 20th anniversary of the RFS program and signals a renewed commitment to its original intent – reducing reliance on foreign oil, supporting rural economies, and expanding the use of homegrown renewable fuels.

According to EPA estimates, the new RVOs would reduce reliance on foreign oil by about 150,000 barrels per day during the rule’s timeframe. In 2024, roughly 45% of biomass-based diesel and its feedstocks came from abroad, a figure the administration hopes to reduce significantly through the proposal.

As the rule moves toward finalization, agricultural stakeholders say they will continue to work closely with the EPA to ensure that farmers’ voices remain central in shaping America’s energy future.

EDITOR’S TAKE:

Outstanding moves to improve markets for U.S. corn and soybean producers. As you likely know, crop producers have had a rough couple of years after several years prior that were record setting. This significant move by EPA will provide a much-needed boost for them, but also for consumers who desire lower energy prices. As stated in the article, this policy is also a big step towards America’s energy independence. In other words, a brighter future for our corn and soybean producers is on the horizon. Now is a perfect time to start promoting the new AGwagon truck that is designed by farmers/ranchers for farmers/ranchers. It is also a great time to contact your representatives in Congress to support passage of the 100% depreciation for capital expenditures. Allowing them to write off that truck investment in the year of purchase can provide a huge boost to your farm/ranch truck and SUV sales.