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
Agriculture remains a key drag on regional growth amid weak prices and policy uncertainty.
Tight cattle supplies favor poultry and pork while keeping beef margins under pressure.
American Farmland Trust shares guidance, research, and policy solutions to help farmers navigate the growing threat of PFAS, or “forever chemicals,” contaminating U.S. farmland.
Richard Gupton of the Agricultural Retailers Association discusses the EPA’s new decision on over-the-top Dicamba and what it means for growers this year.
Mike Spier, president and CEO of U.S. Wheat Associates, discusses the new U.S.-Bangladesh trade agreement and its potential benefits for U.S. wheat growers.
Gretchen Kuck of the National Corn Growers Association joined us to discuss the Ag Coalition for USMCA’s report findings and expectations ahead of the upcoming USMCA review.

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:

Stronger sorghum genetics could enhance the resilience of bioenergy crops and broaden production options for growers in harsher climates.
Rising beef supplies and lower cattle prices, weaker hog markets, and softening dairy prices will shape producer margins heading into 2026.
Canadian tariffs would raise costs for potash, ammonia, and UAN, increasing spring fertilizer risk.
A permanent national E15 standard would boost corn demand, lower fuel costs, and provide a stable path for U.S. energy security.
Outdated reporting thresholds reduce cash-market visibility and increase the urgency of comprehensive Mandatory Price Reporting reform.
Rural employers are slightly more optimistic, but labor shortages and renewed price pressures continue to limit growth across farm country according to a