Soybean group sounds alarm over reports that 2025 SREs could far exceed previous government projections

The American Soybean Association is sounding the alarm over reports that small-refinery exemptions (SREs) for the 2025 Renewable Fuel Standard compliance year could far exceed previous government projections, delivering a major blow to domestic biofuel demand when U.S. soybean farmers can least afford it.

Recent reports and analysis indicate SREs from RFS compliance-year 2025 could total more than 1.8 billion renewable identification number (RIN) credits under a newly revised methodology being developed, ASA stated.

Such a massive volume of RFS compliance exemptions would be nearly double what U.S. EPA had assumed when it published the final 2026-’27 renewable volume obligation (RVO) rule.

The final biofuel-blending rule published earlier this year by the Trump administration included historic increases in biofuel volumes, boosting domestic demand for biofuels and U.S. soybeans.

ASA applauded President Trump and EPA for supporting policies that drive demand, encourage industry investment and improve local on-farm basis.

If EPA approves SRE petitions at levels that significantly exceed EPA’s earlier assumptions embodied in current biofuel-blending rules, the result, according to ASA, will be long-term damage that effectively undercuts the positive actions taken by the Trump administration.

The significant increase in biofuel volumes exempted from the RFS could eliminate around 500 million gallons of biomass-based diesel demand, cost U.S. soybean farmers approximately $1 billion in lost revenue, and put oil-refiner interests ahead of farmers, rural communities and expanded domestic biofuel supplies, the association said.

“At a time when soybean farmers are already struggling to support our farms, we cannot afford for the rug to be pulled out from under one of our most important sources of domestic demand,” said ASA Vice President Dave Walton, a soybean farmer from Iowa. “The Trump administration has been tirelessly supporting policies that expand markets for biofuels made from U.S. soybeans, and we cannot reverse course just as the biofuel industry is beginning to realize the benefits. Domestic biofuel policy succeeds when it supports American farmers producing American energy, not when it gives oil refiners another break at a time when they are experiencing record profits. We hope the president and White House maintain their commitment to U.S. farmers and reject proposed actions that destroy these newly expanded markets in exchange for a giveaway to oil refiners.”

Biomass-based diesel provides a critical and growing domestic market for soybean oil, supporting soybean prices, rural jobs and economic activity across the country.

The reported SRE actions would run counter to the administration’s stated goals of strengthening American energy dominance, expanding domestic energy production and supporting rural economies.

American-grown biofuels diversify the nation’s fuel supply while creating a reliable domestic market for U.S. agriculture.

ASA has long advocated for the denial of compliance waivers, or SREs, which erode the integrity of the RFS by reducing biofuel demand and impacting farmers by lowering the value of soybean crops.

ASA is urging President Trump and officials in the White House to reject any proposal that seeks to broaden the formula used to determine refinery exemptions from biofuel-blending requirements in a way that would hurt farmers and erase demand for biofuels.

Instead, ASA urges the administration to maintain exemptions no greater than what EPA estimated using historically backed market data when it published the current biofuel-blending rule.