Biofuel Waivers Raise Concerns for Soybean Farmers

By Scout Nelson

Minnesota soybean farmers are raising concerns about possible increases in small refinery exemptions under the Renewable Fuel Standard. Grower groups say expanded exemptions could reduce domestic biofuel demand and create additional pressure for soybean producers already facing difficult market conditions.

The Minnesota Soybean Growers Association is working with industry partners, including the American Soybean Association, to protect demand for soybeans and biofuels.

Recent reports indicate that exemptions for the 2025 Renewable Fuel Standard compliance year could reach more than 1.8 billion Renewable Identification Number credits under a proposed revised method. This level would be much higher than earlier government estimates.

Federal biofuel policies have recently increased blending targets, which support demand for biofuels and U.S. soybeans. However, soybean groups are concerned that larger refinery exemptions could reduce the benefits of those policies.

“The biofuels market – an industry which Minnesota has helped lead for over 20 years – can ill afford to go backwards at this critical point in time,” MSGA President Ryan Mackenthun said. “Times are already tough in farm country, and issuing such a rise in small refinery exemptions would be a huge blow to our industry during a time when we’re already facing a number of economic struggles ahead of harvest. Like my fellow farmers, I’m optimistic at heart, and I strongly urge the Trump administration to continue their commitment to U.S. farmers by strongly rejecting these reported actions.”

Industry groups estimate that larger exemptions could remove about 500 million gallons of biomass-based diesel demand. They also estimate that U.S. soybean farmers could lose about $1 billion in revenue.

Biomass-based diesel creates an important domestic market for soybean oil. Strong demand supports soybean prices, farm income, rural jobs, and related businesses. Biodiesel can also increase the value of soybeans by more than $1 per bushel.

The American Soybean Association is urging federal officials to reject changes that could reduce biofuel demand. It supports keeping refinery exemptions within levels supported by historical market data.

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