EPA Sets Record Biofuel Volumes For 2026-2027 Demand

Farm Bureau economist Dr. Faith Parum says EPA’s final biofuel volumes keep corn demand steady and strengthen the outlook for soybean-based diesel feedstocks.

Ethanol gasoline fuel nozzle and corn kernels. Biofuel, agriculture and fuel price concept

JJ Gouin - stock.adobe.com

WASHINGTON, D.C. (RFD NEWS) — The Environmental Protection Agency (EPA) has finalized record Renewable Fuel Standard volumes for 2026 and 2027, giving agriculture another signal of steady demand from the biofuels sector.

Dr. Faith Parum of the American Farm Bureau Federation said the final rule raises total renewable fuel obligations to 26.81 billion gallons in 2026 and 27.02 billion gallons in 2027, with most of the growth tied to advanced fuels and biomass-based diesel.

The conventional ethanol requirement remains at 15 billion gallons, preserving a major source of corn demand. She also noted that nationwide year-round access to E15 would further strengthen ethanol use by enabling higher blends to be sold more consistently.

The biggest growth came in diesel-related categories. Biomass-based diesel volumes were finalized at 8.86 billion gallons in 2026 and 8.95 billion gallons in 2027, with even higher effective totals following small-refinery exemption reallocations.

Parum said the EPA also changed how small-refinery exemptions are handled by redistributing previously exempted gallons into future obligations. That is intended to keep waived volumes from reducing total renewable fuel demand over time.

For agriculture, the rule points to continued support for corn, soybeans, and soybean oil, while also reinforcing demand for other feedstocks used in advanced fuels. Parum said the final rule gives farmers and biofuel producers more certainty as the market continues to expand.

Farm-Level Takeaway: Dr. Faith Parum says EPA’s final biofuel volumes keep corn demand steady and strengthen the outlook for soybean-based diesel feedstocks.
Tony St. James, RFD News Markets Specialist
Related Stories
Corn and wheat inspections outpaced last year, but soybean movement remains seasonally active yet behind, keeping basis and freight dynamics in focus by corridor.
API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.
In the meantime, Senate Majority Leader John Thune is asking that farmers be allowed to use marketing assistance loans to help stay afloat.
The USDA’s latest Hogs and Pigs Report caught some analysts off guard. Inventories came in lower than expected, signaling tighter supplies ahead, even as producers return to profitability this year.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Panama matters to agriculture as both a freight corridor and a potential future market for U.S. ethanol.
Producers using farm entities should review ownership, labor contributions, and FSA paperwork before September 15.
Ethanol and feed coproduct exports remain strong outlets for corn demand, even after April’s pullback.
Trade estimates point to only modest changes in U.S. grain ending stocks ahead of USDA’s June 11 WASDE report.
Farmers may need flexible marketing plans as tighter supplies and uncertain demand heighten price risks for corn and soybeans.
Global fiber demand is growing, but cotton producers benefit only when cotton gains value and competes for market share.