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
The Ranger Road Fire is fully contained after burning nearly 300,000 acres. Ranchers face significant cattle and fence losses, with recovery efforts underway.
USDA Farmer Bridge Assistance payments could begin this weekend as producers face tight margins, shifting acreage expectations, cattle herd contraction, and growing pressure for a stronger farm safety net.
Delays on year-round E15 keep potential corn demand and fuel savings in limbo.
Higher energy costs ripple through local farm supply chains.
Strong export demand supports barge markets, but weather risks remain.
Policy awareness is becoming part of everyday risk management.

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:

Strong pork demand and improving beef exports outside China support protein markets despite ongoing trade barriers.
Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
Leadership development and bipartisan engagement remain central to advancing agriculture’s priorities in 2026.
Winter Weather, Drought Shape Early 2026 Farm Conditions
As domestic production and blending slowed, export demand remained a clear bright spot.