American biofuel industry and farm groups who represent corn, soybean, and canola growers are applauding record-high renewable fuel mandates announced by the Trump administration on Friday.
The biofuel requirements are also expected to support demand for canola grown in Canada, at least until 2028, while putting further pressure on Canadian ethanol producers.
The long-awaited renewable fuel volume obligations (RVOs) for 2026 and 2027 were released by the Environmental Protection Agency (EPA) during an event dubbed the "Great American Agriculture Celebration" at the White House Friday, March 27.
For soybeans and canola, the EPA estimates the new requirements will boost biodiesel and renewable diesel production by more than 60 per cent versus 2025. The requirement of 8.95 billion RINs of biomass-based diesel by 2027 surpassed the agency's earlier proposal of 7.5 billion.
"U.S. soybean farmers needed a win to boost domestic markets this year, and President Trump, Administrator Zeldin, and Secretary Rollins delivered in a big way. ASA is grateful for the tireless efforts of EPA and USDA to ensure the soy biofuel value chain could benefit from the strongest RVOs ever finalized,” said Scott Metzger, president of the American Soybean Association. “The 2026-2027 RVOs will increase soybean oil use, boost U.S. soybean processing, and grow domestic biofuel markets for our crop. ASA and our soybean farmer members applaud the Trump Administration for getting this tremendous rule across the finish line.”
For canola grown in Canada, the EPA is notably delaying its plan to cut credits generated by imported feedstocks by two years. To prioritize domestically sourced biofuel feedstock, the EPA last summer proposed a 50 per cent credit discount for fuels made from imported feedstocks, beginning in 2026. On Friday, the EPA said it is now looking to enforce the change in 2028.
As for corn, the ethanol number was seen as neutral for the U.S. market, as EPA's final rule maintains a mandate for 15 billion gallons of conventional renewable fuel in both 2026 and 2027. The agency also announced it will reallocate 70 percent of the renewable fuel volumes lost to small refinery exemptions (SREs) for 2023-2025, effectively restoring 2.03 billion gallons of previously lost demand, according to the Renewable Fuels Association.
“The final rule locks in the highest-ever renewable fuel volume obligations and provides clarity for farmers, ethanol producers, oil refiners, and fuel distributors alike," noted RFA president and CEO Geoff Cooper.
National Corn Growers Association president Jed Bower said the announcement "provides certainty" for U.S. corn producers.
“Today’s announcement, coupled with the Trump administration’s E15 summertime waiver earlier this week, is a positive move for the nation’s corn growers who are navigating an exceptionally difficult economic environment," said Bower, noting NCGA is still focused on getting permanent year-round E15 legislation finalized.
The EPA projects expanded use of ethanol, biodiesel, and renewable diesel will reduce the country's dependence on foreign oil by around 300,000 barrels of oil per day over 2026 and 2027.
A Canadian renewable fuel industry source on Friday described the plan to slash compliance credits for imported biofuel and feedstocks in 2028 as "a material escalation in U.S. protectionist policy."
Barring urgent changes to Canada's Clean Fuel Regulations, they say the EPA's announcement will result in surplus U.S. ethanol continuing to flow north to Canada — already the top export market for U.S. ethanol.