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
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
Harvest Pace, Logistics, and Input Costs Drive Fall Decisions
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
Southern farms are deepening online engagement for cost savings and market access, while higher-cost precision technologies face renewed scrutiny amid tight budgets.
Global trade teams and summit discussions highlight expanding opportunities for U.S. corn and ethanol exports as nations explore renewable fuel options and reduced-carbon energy pathways.

LATEST STORIES BY THIS AUTHOR:

Persistently low Mississippi River levels are turning logistics challenges into pricing risks — tightening margins for grain producers and exporters across the heartland.
Pull out the popcorn! We’ve rounded up the 10 best cowboy movies of all time.
U.S. Rep. Dusty Johnson (R-SD) shares his outlook on the developing U.S.-China Trade agreement, and the ongoing impact of the federal government shutdown—now stretching past four weeks—on rural communities and producers.
RealAg Radio host Shaun Haney joined us on Friday’s Market Day Report to discuss what the Carney-Xi meeting could mean for Canadian producers.
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.