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The American Soybean Association has praised President Trump, Administrator Lee Zeldin and Secretary Brooke Rollins for finalising historic Renewable Volume Obligations (RVOs) for biomass-based diesel for 2026 and 2027, which will support US soybean farmers and strengthen domestic soy-based biofuel production. The new RVO rule supports the Trump administration's directives to bolster American energy dominance, with a stated future intent to prioritise biofuels grown in the United States.
Scott Metzger, president of the American Soybean Association (ASA) and a farmer from Ohio, said: "US soybean farmers needed a win to strengthen domestic markets this year, and President Trump, Administrator Zeldin and Secretary Rollins have delivered that in a big way. The association is grateful for the tireless efforts of the Environmental Protection Agency (EPA) and the US Department of Agriculture (USDA) to ensure the soy biofuel value chain benefits from the strongest Renewable Volume Obligations ever enacted." He added: "The 2026-2027 RVOs will increase soybean oil use, strengthen soybean processing in the United States and grow domestic biofuel markets for our crop. The American Soybean Association and our farmer members commend the Trump administration for advancing this enormous rule and getting it across the finish line."
The updated 2026-2027 RVO rule will lift biomass-based diesel blending to roughly 5.4 to 5.5 billion gallons, an increase of more than 60% on 2025 volumes. The rule also retroactively reallocates 70% of small refinery exemption (SRE) volumes for 2023-2025, on which the EPA took action last year, in addition to the 2026-2027 compliance years. The ASA welcomed the EPA's clearing of a substantial backlog of legacy small refinery exemptions dating back to 2016 that had been remanded to the agency, and is pleased to see a significant reallocation of volumes back into the blending pool to support additional biofuel production and increase soybean demand.
While the rule makes no immediate changes to prioritise domestically sourced biofuel feedstocks, the ASA welcomed the EPA's announcement of reduced credit generation for imported biofuels and biofuel feedstocks beginning in 2028. If this import credit reduction is maintained in future RVOs, it would serve as a significant economic driver for the entire domestic biomass-based diesel value chain and stimulate domestic demand for US soybeans.
Domestic biofuel production accounts for more than half of total domestic soybean oil consumption and represents a critically important US market for soybean farmers. The RVOs set through the Renewable Fuel Standard are the cornerstone of driving domestic demand for soy-based biofuel. The EPA's 2026-2027 RVOs represent the most significant annual improvement in Renewable Fuel Standard rulemaking for biomass-based diesel, and therefore for US soybean farmers.
Source: SoyGrowers