By Jamie Martin
U.S. farmers are calling on the federal government to boost domestic biofuel use as they deal with falling exports and growing crop surpluses due to trade disputes.
Following trade wars, especially with China, many growers have no foreign buyers for their upcoming soybean, corn, and wheat harvests.
The Environmental Protection Agency (EPA) is expected to release a new plan on renewable volume obligations (RVOs), which dictate how much biofuel must be blended into traditional fuels.
Farmers and agricultural groups are asking for higher mandates to create new markets and reduce reliance on exports.
“If we don’t get this done, we’ll end up with a surplus of soybeans,” said Caleb Ragland, president of the American Soybean Association. “I can store one good crop; I can’t store multiple years.”
Export data shows soybean sales are down 79% and corn sales are 49% below the five-year average. These issues come on top of global grain oversupply, which has already hurt prices. A 2022 grain price peak has since dropped by more than 40%.
Major agribusinesses and farm groups want the EPA to mandate at least 5.25 billion gallons of biomass-based diesel and maintain 15 billion gallons of ethanol.
Surprisingly, even the American Petroleum Institute supports this, aligning with farmers to boost biofuel use.
Still, not everyone agrees. Some oil refiners say there’s not enough gasoline sold to support such high ethanol levels and question whether feedstock supply is enough for increased renewable diesel production.
The industry’s concerns are valid. Biodiesel plants are operating at just 51% of their capacity, while renewable diesel facilities are running at 72%. This has impacted farmers’ ability to move their crops.
“It’s resulting in difficulties for the ag industry too because farmers can’t get rid of their soybeans,” said Peter Zonneveld of biofuel firm Neste Oyj.
The EPA confirmed it has sent its biofuel-blending proposal to the White House for review. The plan supports “President Trump’s broader economic vision of strengthening American energy independence, growing domestic agricultural markets, and fighting back against unfair trade practices.”
With reduced cattle herds and shrinking exports, farmers believe a robust domestic market for biofuels could be key to economic recovery.
Photo Credit: photo-credit-vista-mipan
Categories: National