NASHVILLE, TN – Record ethanol production and expanding fuel market access are reinforcing demand for U.S. corn while supporting farm income stability in 2026, according to new industry outlook data from the Renewable Fuels Association.
The ethanol industry produced a record 16.4 billion gallons in 2025 while exports climbed to a new high of 2.2 billion gallons, reflecting stronger domestic fuel consumption and growing international demand. Approval of E15 fuel use in California — one of the nation’s largest gasoline markets — marked a major policy milestone expected to expand long-term blending opportunities.
For producers, ethanol remains a critical demand driver. Roughly 5.6 billion bushels of corn were used for ethanol production in 2025, helping absorb a record 17-billion-bushel corn crop and limiting deeper price declines during a period of oversupply. Industry analysis shows ethanol processing added roughly $2.25 in value per bushel, supporting rural investment and farm profitability.
Operationally, the United States now operates 198 ethanol biorefineries with nearly 18.5 billion gallons of installed capacity. Iowa leads national production capacity, followed by Nebraska, Illinois, Minnesota, and South Dakota — reinforcing ethanol’s concentration across major Corn Belt states.
Looking ahead, industry leaders say nationwide year-round E15 access and continued support for the Renewable Fuel Standard remain key policy priorities to expand demand, strengthen energy independence, and sustain agricultural markets.
Farm-Level Takeaway: Ethanol demand continues to provide price support and market stability for corn producers.