Iowa farmers, biodiesel producers celebrate US EPA’s strong RFS volumes

Photo: Joclyn Kuboushek, Iowa Soybean Association

The Iowa Soybean Association and Iowa Biodiesel Board applaud the March 27 action by U.S. EPA finalizing renewable volume obligations (RVOs) for 2026-’27 under the federal Renewable Fuel Standard.  

As the largest driver of domestic soybean and corn consumption, RVOs are critical to sustaining Iowa’s farm economy and biofuels industry.  

EPA’s final rule brings substantial volume increases for biobased diesel to at least 5.25 billion gallons for 2026.  

EPA delivered effective volumes of 8.86 billion renewable identification number (RIN) credits for 2026 and 8.95 billion RINs for 2027. 

“Disruptions in international trade are limiting export opportunities for farmers while input costs continue to rise, making it harder than ever to break even,” said Tom Adam, ISA president and soybean farmer from Harper, Iowa. “Biodiesel and renewable diesel are the best near-term market available to farmers right now. Farmers are preparing to plant as we speak, and a strong RFS tells them there’s a reliable market for what they grow—that certainty is invaluable.”  

Adam added that soybean farmers have long supported updates to federal biofuel policies that prioritize soy-based fuels, which also help build domestic markets for the crops they produce.  

“Soybean-crush capacity has grown roughly 25 percent across the U.S., including at new plants and expansions across the state in Alta and Shell Rock,” he said. “This is driven by biofuel demand for soybean oil—plain and simple. We thank the Trump administration for providing a dose of much-needed certainty for Iowa farmers, processors and biodiesel producers heading into the spring planting season.” 

Grant Kimberley, ISA senior director of market development and IBB executive director, said, “This is the right decision at the right time—for American energy security, for farmers-first and for consumers at the pump. Our state’s unused capacity due to market uncertainty can now be brought back online, using regionally diverse feedstocks like soybean oil and facilities already built and ready to run. Iowa's eight operating plants, including three that are independent and locally owned, are eager to get back to work.”  

Kimberley added that when biodiesel producers succeed, farmers also succeed.  

“Biomass-based diesel production represents 10 percent of the value of every bushel of soybeans grown in the United States,” he said. “Consumers also stand to gain through greater domestic energy security and fuel diversity. According to the DOE’s Clean Cities program, B20 blends average 11 cents per gallon less than petroleum diesel. EPA and this administration deserve real credit for acting with ambition and belief in biodiesel. This strong biomass-based diesel volume is exactly what this industry needs to put idled capacity back to work and strengthen our domestic energy supply at a moment when the country needs it most. This decision puts American energy and American agriculture on stronger footing—and Iowa’s biodiesel industry is ready to deliver.” 

Iowa is the nation’s leading biodiesel-producing state and soybean-oil producer.  

In 2025, Iowa used 1.68 billion pounds of soybean oil to produce 224.5 million gallons of biodiesel.  

This volume is equivalent to nearly 144 million bushels of soybeans, or roughly 24 percent of the state’s total crop.