The Trump administration announced biodiesel quota increases last week, which will give a much-needed financial lift to some corn and soybean farmers. "The new rule increases biomass-based diesel — which is partly derived from soybeans — blending by more than 60%," reports Patrick Thomas of The Wall Street Journal. "It raises the biofuel requirement for all fuels by a lower percentage."
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| Federal biofuel requirements from 2025-2027. (Graph via Farm Progress) |
The quota announcement, which tells refineries "how much biofuel made from crops must be blended into the gasoline and diesel supply" ... "is closely watched by corn and soybean farmers," Thomas explains. The percentage also impacts companies such as Archer Daniels Midland, Bunge and Cargill, which "buy crops from farmers and process grains and oilseeds into fuel, food ingredients and other products."Trump announced the quota requirements at a White House event "surrounded by farmers, ranchers and a gold-colored tractor," Thomas explains. Trump outlined how the increased renewable fuel requirements "would help bolster the U.S. fuel supply, while generating $10 billion for rural economies."
Trump also told the crowd that "he was seeking congressional action to allow gas containing 15% of ethanol year-round and new loan guarantees for farmers," Thomas reports. Farmers have been pushing for year-round sales of E-15 gasoline, commonly known as "Unleaded 88" for its higher octane rating. Ninety-seven percent of U.S. ethanol is made from corn, so continuous E-15 sales would primarily benefit American corn farmers.
The farmer loan guarantees Trump referenced are aimed at lowering grocery prices. Trump said the loans, which will flow through the Small Business Administration, will "open up 'massive new loan guarantees' for farmers and food producers," reports Joshua Baethge of Farm Progress.
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