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
Elena Chavez with Halter provided insight into the company’s virtual fencing technology, its adoption in the U.S., and the impact of recent funding on ranching operations.
Brooks York with AgriSompo addresses how current market conditions and risk management are impacted by volatility in the Middle East, and considerations for farmers in the spring planting season.
The Biden Administration launched the Increasing Land, Capital, and Market Access (ILCMA) program in 2023 to help underserved farmers facing barriers to land ownership.
Farm CPA Paul Neiffer provided guidance on navigating the R&D tax credit, emphasizing record-keeping, eligibility, and maximizing potential savings as crop margins remain the key pressure point for farmers.
Justin Tupper with the U.S. Cattlemen’s Association joins us to discuss the USDA’s voluntary labeling updates, industry priorities, and the outlook for U.S. cattle producers.
RFA and ACE leaders join us to discuss the latest developments in ethanol policy, market impacts, and the path forward

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:

Rail logistics remain supportive, with access to Mexico improving
Strong land values contrast with mounting credit pressure.
Restored base acres strengthen cotton risk protection.
Agriculture Freedom Zones reflect rising concern that data center growth must not strain rural grids or displace productive farmland.
Record Choice grading levels are changing how beef quality premiums are valued.
From projected drops in input costs to biofuel expansion and the USDA’s new “One Farmer, One File” initiative, Ag Secretary Brooke Rollins shared key policy priorities at Commodity Classic that put farm issues back in the spotlight.