Ethanol Blog

LINCOLN, Neb. (DTN) -- U.S. soybean farmers could lose between $3.2 billion and $7.5 billion if the Trump administration does not completely reallocate biofuels gallons to small-refinery exemptions to the Renewable Fuel Standard, a biofuels group told Lee Zeldin, administrator of the U.S. Environmental Protection Agency, in an Oct. 16, 2025, letter.

Clean Fuels Alliance America cited an analysis by World Agricultural Economic and Environmental Services, that outlines the losses to soybean farmers based on how much volume from SREs is reallocated.

The EPA issued a supplemental proposal to the RFS volumes, asking for public input on a range of reallocation from zero to 100%.

According to the company's study, if the agency adopts a 50% reallocation in 2026 to 2027 490 million gallons of biomass-based diesel production would be lost, leading to $1.4 billion in lost soybean farm revenue and a $1.8 billion drop in the value of soybean products to soybean crushers.

Clean Fuels said in the letter to Zeldin that reallocating zero gallons of biofuels would be "considerable worse."

The analysis found it would lead to 1 billion gallons of lost biomass-based diesel production, $2.6 billion in lost soybean revenue to farms and a $4.9 billion drop in the value of soybean products to crushers.

"Biomass-based diesel is essential to America's farm security, now more than ever," Clean Fuels said in the letter.

"Domestic biodiesel, renewable diesel and SAF (sustainable aviation fuel) production supports 10% of the value of every bushel of soybeans grown in the United States. With increased farm productivity, U.S. soybean growers are right now harvesting a projected 4.3 billion bushels of soybeans for the season worth $43 billion. And with more than $6 billion of investment, U.S. soybean processors are expected to crush a record 2.5 billion of those bushels next year."

Clean Fuels said that in facing retaliatory trade measures from China and a growing global competition from Argentina and Brazil, "America's farmers cannot afford to lose the value" that U.S. biomass-based diesel brings.

"We acknowledge that the current government shutdown is impacting both the administration's ability to provide economic relief to America's farmers and EPA's goal of meeting the statutory deadlines for the RFS rule," the group told Zeldin.

"Nevertheless, America's farmers are facing extreme economic challenge

and making planting decisions for next season. Biomass-based diesel producers and soybean processors are already negotiating feedstock contracts, fuel production and offtake agreements, and investment decisions for 2026. Across the board, our industry needs the rulemaking to be published before the end of the year to provide necessary policy stability and market confidence."

Kurt Kovarik, Clean Fuels' vice president of federal affairs, said in a statement, "Clean Fuels urges EPA to quickly finalize the robust, timely RFS volumes it proposed in June and ensure they are not eroded by small-refinery exemptions. U.S. biodiesel and renewable diesel production supports 10% of the value of every bushel of soybeans grown here. Supporting continued growth of U.S. biomass-based diesel is crucial right now to support American farmers and the agricultural economy."

Read more on DTN:

"EPA Proposes RFS Reallocation Options," https://www.dtnpf.com/…

"Fed Shutdown Slows RFS, WOTUS Rules," https://www.dtnpf.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

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