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 U.S. Supreme Court ruled on Friday that imposing duties without Congressional authorization exceeds presidential powers. RealAg Radio host Shaun Haney joins us to discuss the potential trade and agriculture implications of the recent ruling.
Kerry Hartwig from Sukup Manufacturing previews the grain management solutions they plan to share with producers at the upcoming Commodity Classic in San Antonio.
The USDA Agricultural Outlook Forum highlights modest price support from tighter supplies across cotton, grains, dairy, livestock, and sugar into 2026.
Farm Bureau Economist Faith Parum discusses the latest Farm Bill proposal and the path ahead for Congress and U.S. agriculture.
Small Business Administration Deputy Administrator Bill Briggs joined us with an update on how the SBA is working to support rural communities and small businesses across the country.
President Donald Trump signed an executive order this week to accelerate domestic production of phosphorus and glyphosate, signaling that farm input availability is now treated as a national security risk.

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:

Preserving equity through active risk management remains critical in a volatile, supply-driven market.
Weather, Tight Supplies, and Planning Shape Farm Decisions
Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.