NASHVILLE, TN – New federal biofuel mandates are set to increase demand for U.S. crops, providing stronger market support for corn and soybean producers over the next two years.
The Environmental Protection Agency finalized its Renewable Fuel Standard “Set 2” rule, establishing 2026 and 2027 blending requirements at the highest levels in program history. The rule maintains a 15 billion-gallon conventional biofuel target, supporting ethanol demand, while significantly expanding biodiesel and renewable diesel requirements.
EPA estimates that biodiesel and renewable diesel use will need to rise by more than 60 percent from 2025 levels. That increase is expected to drive additional demand for soybean oil and other feedstocks, strengthening prices and supporting farm income. USDA officials estimate the rule could add $3 to $4 billion in net farm income and generate $31 billion in crop value tied to biofuel production.
The policy also aims to reduce U.S. reliance on foreign oil by roughly 300,000 barrels per day while supporting rural economies and domestic energy production.
In the longer term, changes beginning in 2028 will prioritize U.S.-produced biofuels over foreign feedstocks, further reinforcing domestic demand.
Farm-Level Takeaway: Higher biofuel mandates support stronger long-term demand for crops.