ASA warns against state petitions that threaten domestic soybean markets
The American Soybean Association is warning against requests from several states with large petroleum interests that are petitioning for a rollback of Renewable Fuel Standard volumes.
These requests, if acted on, would strike a major blow to domestic U.S. soybean markets and rural economies more broadly.
Several governors petitioned the U.S. EPA to waive all 2027 RFS compliance for petroleum refiners in their states, arguing that it will lower fuel prices.
However, national average costs of biofuel blends are lower than conventional petroleum fuels.
At least one petition falsely claimed that a waiver would support agriculture and poultry producers, despite the economic benefits that strong renewable fuel demand provides to both industries and rural communities.
Like all Americans, farmers are feeling the impact of the price at the pump and having to make difficult choices to remain in business.
“But make no mistake,” ASA stated. “Undercutting the RFS by waiving compliance would result in a giveaway to refineries that are making record profits while U.S. agriculture would be left holding the bag. U.S. oil and gas companies have made a record $160 billion in profits since April, an over 175 percent increase compared to last year. At the same time, American farmers are struggling to support their farms and cannot afford another market loss.”
The RFS supports domestic energy production while supporting farmers.
As a result of the current RFS volume obligations, domestic demand for U.S. soybeans has surged, biofuel production is booming, and soybean processors are investing billions of dollars here in the United States to increase capacity through plant expansions and new construction.
This growth in domestic soybean processing creates jobs, improves local on-farm basis for farmers and lowers the cost of soybean meal used by livestock producers as demand for soybean oil increases availability.
Lower feed costs for animals translate into lower prices paid by consumers for meat, milk and eggs.
Biomass-based diesel provides a critical and growing domestic market for soybean oil, supporting soybean prices, rural jobs and economic activity across the country.
ASA urged EPA to support U.S. farmers and the rural economy by denying these state petitions and maintaining the future integrity of the RFS.
