WILTON, IOWA (RFD NEWS) — Soybean growers are raising concerns over reports that small refinery exemptions for the 2025 Renewable Fuel Standard could far exceed previous projections.
The American Soybean Association (ASA) says the potential exemptions could significantly reduce domestic biofuel demand and impact the value of the U.S. soybean crop. ASA Vice President Dave Walton joined us on Wednesday’s Market Day Report to discuss the reports and what they could mean for soybean farmers.
In his interview with RFD News, Walton said reports indicate the Environmental Protection Agency is considering small refinery exemptions that could total as much as 1.8 billion RIN credits. He noted that could translate to roughly 900 million to 1 billion gallons of affected fuel.
Walton called that a major blow to the Renewable Fuel Standard and said the RFS adds value to soybean products.
Potential Impact on Biofuel Demand
If the exemptions are fully granted, Walton said they could remove between 900 million and 1 billion gallons of biofuels from the marketplace unless those gallons are reallocated.
He said reallocation could soften the impact.
For soybeans, Walton estimated the policy could affect the cash price by about 22 cents per bushel and reduce soybean crop value by more than $1 billion.
Soybean Oil Demand at Risk
Biomass-based diesel has become a critical and growing domestic market for soybean oil.
Walton said the Trump administration’s previous renewable fuel commitments for 2026 and 2027 helped drive expansion across the biofuel sector.
He said biodiesel plants expanded or returned to operation, creating economic benefits for soybean growers and the broader value chain.
Walton also attributed part of the recent rally in soybean prices to increased demand.
He warned that if the proposed exemptions are fully implemented, some of that demand and value could be lost, potentially setting the industry back years.
ASA Calls for Changes to Exemption Policy
The American Soybean Association is calling on the administration to reconsider the proposal.
Walton said the small refinery exemption program was originally intended as a bridge to help small refineries comply with the Renewable Fuel Standard.
Under the original intent, he said, exemptions were supposed to address economic harm while providing a pathway toward compliance.
Walton said the association wants the program to return to that original purpose.
Harvest Approaches in Iowa
Walton also provided an update on conditions at his farm in Iowa as harvest approaches. He said crops are ahead on heat units, with some corn approaching the half-milk-line stage. He estimated harvest could begin in about three weeks. Soybeans are also developing well, while corn conditions are more variable.
Walton said wet conditions through mid-summer may have reduced some corn yield potential because of excess moisture. He also said he was putting up a third crop of hay and expected harvest to be around the corner.
Overall, Walton said Iowa producers are looking forward to harvest despite some variability in crop conditions.
