Farmers Seek Higher Biofuel Use to Save Crops

Trade Losses Push Demand for Stronger Domestic Fuel Policies

U.S. farmers are depending on stronger biofuel policies to recover from international trade losses and prevent crop surpluses.

With foreign orders for soybeans and corn falling sharply, many producers hope domestic fuel mandates will offer relief.

China, once the largest buyer of U.S. crops, has significantly reduced imports after trade disputes. Sales of the next season’s crops to China, Japan, and Mexico are lagging, making farmers turn to biofuel as an alternative market.

The Environmental Protection Agency (EPA) is expected to propose new renewable volume obligations (RVOs), which regulate the use of biofuels. Farmers and agricultural leaders hope these mandates will increase significantly.

“We need a robust RVO to keep U.S. soybeans a profitable business to be in,” said Greg Anderson, a Nebraska soybean farmer.

Farm groups and companies like ADM and Bunge are requesting no less than 5.25 billion gallons of biomass-based diesel for 2026—60% higher than 2025’s level. They also want the ethanol mandate to stay at 15 billion gallons.

Interestingly, the American Petroleum Institute is also supporting this push. However, some refiners oppose the plan, citing low gasoline sales and limited feedstock supply for biofuels.

Meanwhile, biofuel production in the U.S. is slowing. Biodiesel plants are only at 51% capacity, and renewable diesel plants at 72%. Some companies are delaying new investments due to weak demand and unclear government policy.

“It’s resulting in difficulties for the ag industry too because farmers can’t get rid of their soybeans,” said Peter Zonneveld of Neste Oyj.

According to the EPA, the upcoming RVO proposal has already been submitted to the White House and will soon be open for public comment. The agency stated that the program “supports President Trump’s broader economic vision of strengthening American energy independence, growing domestic agricultural markets, and fighting back against unfair trade practices.”

With falling exports and fewer feed uses, American farmers believe that boosting biofuels is essential for their crops and the future of U.S. agriculture.