Joining Forces: This unlikely duo is being tasked with deciding U.S. biofuel policy

The soy complex ended trading yesterday holding strong, supported by talks of biofuel policy on the horizon.

The Trump Administration has asked the oil industry and biofuel groups to come together and work it out themselves. Once they come up with an agreement, it would be presented to the EPA, allowing the Agency to make it the rule.

StoneX’s Arlan Suderman tells us this could be good news for farmers.

“It’s that lack of a policy that has severely hurt our crush margins, our crush demand here of late. We’ve seen liquid biomass diesel production drop by over 50% from December levels in January and February because we don’t have a tax credit policy right now.”

Suderman says this all could happen relatively fast. He is expecting oil and biofuel groups to wrap talks by the end of the month. From there, he expects the EPA to take one to two months to get a final policy returned.

Related Stories
Mexico plans to release 202,000 acre-feet of water into the Rio Grande, offering temporary relief to South Texas farmers as Congress advances the PERMIT Act.
The bill to once again allow schools to offer whole milk and 2% milk will now go to President Trump for approval.
Plans are underway for the 27th annual Great Eastern Iowa Tractorcade, a June event celebrating farm heritage, tractor history, and rural traditions. Event manager Matt Kenney joins us to highlight the importance of commemorating farm heritage.
Farm Legal Expert Roger McEowen with the Washburn School of Law joins us to share more about the North Dakota court decision and the its larger impact on agriculture.
Frigid winter weather and rapid temperature swings have cattle markets watching closely for livestock stress, as analysts say fluctuations pose the greatest risk.
Rising federal debt is increasing pressure on Washington to limit spending, which could tighten future funding and delivery for agricultural programs.

LATEST STORIES BY THIS AUTHOR:

Fertilizer markets face uncertainty after President Trump raised the possibility of tariffs on Canadian imports, with analysts warning of supply and pricing risks. Josh Linville with StoneX provides a fertilizer industry outlook.
A new study found that retaining the EPA’s half-RIN credit protects soybean demand, farm income, and crushing-sector strength while preserving biofuel market flexibility.
The U.S. has a bountiful corn supply, but markets are waiting for the January WASDE Report, which will include updated yield estimates.
“I’m not sure where this bridge goes,” trader Brady Huck with Advanced Trading told RFD-TV News earlier this week.