WASHINGTON, D.C. (RFD NEWS) — After more than 20 hours of markup, the new Farm Bill passed the House Agriculture Committee on Wednesday afternoon and will now head to the full House for a vote. The group spent a two-day stretch debating a range of key issues, from California’s Prop 12 to SNAP and even hemp. However, the issue at the forefront of many of those debates was the federal push for year-round E15 sales — or lack thereof — in the critical ag legislation.
An amendment was offered to force a vote on year-round sales, but it ultimately failed, with House Ag Committee Chairman Rep. Glenn “GT” Thompson saying it wasn’t under the committee’s umbrella. Rep. Eric Sorensen (D-IL) made his case for the amendment, saying farmers and consumers deserve the certainty given today’s geopolitical climate.
“Nationally, corn growers are facing their fourth straight year of negative profitability, including an average loss of $125 per acre for the current crop marketing year alone,” Sorenson said. “Allowing year-round E15 would increase domestic corn demand by more than two billion bushels annually. Increasing access to higher blends nationwide would also provide consumers with a more affordable, low-carbon fuel option at the pump, saving Americans more than $20 billion in fuel costs. But here’s the thing. Today, Wednesday, March 4, who knows? Where are gas prices going? Because we have more than a dozen countries in the Middle East at the beginning of a war. Prices are going up, and people already cannot afford their bills. We keep going this route. American farmers are going to face economic conditions rivaling the 1980s farm crisis. We need certainty for farmers and for my neighbors at the pump. So that they don’t go bankrupt.”
Thompson told his colleagues he believes the time is right for Congress to secure year-round sales of E15, but said the Energy Committee has jurisdiction over that area.
In a call with reporters this week, Senator Chuck Grassley (R-IA) said he’s been closely watching the House’s farm Bill action. He agrees that year-round sales would be a much-needed boost to growers’ income in his state.
“If we get E15, we won’t need help for crop farmers, at least for corn — and corn, because it’s going to increase the income to corn producers by $14 billion,” Grassley explains. “So you don’t need money out of the federal treasury. And I don’t know how many times the farmers are, all the farmers are always telling me they’d rather get their money from the marketplace than from the federal treasury.”
Numbers out this week show U.S. ethanol production hit a record of nearly 16.5 billion gallons last year. That demand is keeping corn and other biofuel markets busy, with the national ethanol blend rate topping 10.5 percent for the first time. USDA numbers show a slight drop in corn used for ethanol in January, but production of distillers’ grains, soybean oil, and soybeans remains strong.
Ethanol Expansion Strengthens Corn Demand and Rural Economies
Record ethanol production and expanding fuel market access are reinforcing demand for U.S. corn while supporting farm income stability in 2026, according to new industry outlook data from the Renewable Fuels Association.
The ethanol industry produced a record 16.4 billion gallons in 2025 while exports climbed to a new high of 2.2 billion gallons, reflecting stronger domestic fuel consumption and growing international demand. Approval of E15 fuel use in California — one of the nation’s largest gasoline markets — marked a major policy milestone expected to expand long-term blending opportunities.
For producers, ethanol remains a critical demand driver. Roughly 5.6 billion bushels of corn were used for ethanol production in 2025, helping absorb a record 17-billion-bushel corn crop and limiting deeper price declines during a period of oversupply. Industry analysis shows ethanol processing added roughly $2.25 in value per bushel, supporting rural investment and farm profitability.
Operationally, the United States now operates 198 ethanol biorefineries with nearly 18.5 billion gallons of installed capacity. Iowa leads national production capacity, followed by Nebraska, Illinois, Minnesota, and South Dakota — reinforcing ethanol’s concentration across major Corn Belt states.
Looking ahead, industry leaders say nationwide year-round E15 access and continued support for the Renewable Fuel Standard remain key policy priorities to expand demand, strengthen energy independence, and sustain agricultural markets.
USDA Oils Report Shows Heavy Biofuel Feedstock Use
The U.S. Department of Agriculture (USDA) annual Fats and Oils Report for 2025 shows large volumes of vegetable oils and animal fats moving through U.S. processors, a key signal for food costs, crush demand, and biofuel feedstock availability.
In the vegetable oil categories shown, NASS totals indicate palm oil use in processing reached about 2.08 billion pounds in 2025, while palm kernel oil use totaled about 519 million pounds. Sunflower refining activity also remained meaningful, with about 405 million pounds of crude sunflower oil processed and roughly 396 million pounds of once-refined sunflower oil produced.
For farmers, these flows matter because strong oil flows support crusher and refiner margins, which influence oilseed bids. When refiners pull more product through the system, it can help steady demand for oil-bearing crops and competing feedstocks.
On the animal fats side, the report highlights scale in inedible channels. Choice white grease production totaled about 1.23 billion pounds, while poultry fat production reached about 2.21 billion pounds, and yellow grease production totaled about 1.37 billion pounds, underscoring the ample supply available for industrial and fuel uses.
Looking ahead, the mix of edible oil processing and large volumes of inedible fat keeps both grocery pricing and renewable fuels margins sensitive to shifts in demand, policy, and export flows.
Corn Growers: We Want Markets, Not Government Checks
The USDA’s Farmer Bridge Assistance Program payments are finally rolling out across farm country. While producers are grateful, many say the end goal is to sell more commodities. According to the National Corn Growers Association (NCGA) and its immediate past president, Kenneth Hartman, the group is working to create market opportunities rather than relying on checks.
“Obviously, our top priority is creating markets,” Hartman said. “We did a strategic plan the year before, and it’s all about creating markets. With our prices where we’re at right now, we need to get those prices up, and the only way we can do that is sell more corn and grind more corn. So, we’re very excited about some of the things we worked on when it came to getting more exports with trade agreements, things that we were working on when it comes to, right now, Mexico is our number one customer for corn. Canada is our number one customer for ethanol, and we’ve worked with a lot of countries.”
Other countries are increasing ethanol use, which Hartman says means more sales for U.S. producers.
“The UK is now in a trade agreement; they’re buying more ethanol,” Hartman explained. “We’ve got some other countries when it comes to working with Vietnam, working with some of these other countries. Colombia is a very good market for us. Japan’s a very good market for us. I know that when we were in Japan last year on a mission and talked to them, they’re using higher ethanol blends in their automobiles. So, these are all things that I was excited that I got to be involved with. Hopefully, that keeps going this year, when we can get E15 passed. Some of the other things that we were very instrumental in working with MAHA. We do not want to take our tools away from our farmers.”
The USDA says it is also working to secure market opportunities for corn and ethanol. The department is heading on a trade mission to the Philippines next month, where they say ethanol will be a major topic of discussion. NCGA’s Current President, Jed Bower, joined us on Thursday’s Market Day Report to share his perspective on the proposal and the benefits he sees in getting a new farm bill in place for producers.
In his interview with RFD NEWS, Bower also discussed the debate surrounding the absence of language supporting year-round sales of E15. During the committee process, Glenn “GT” Thompson told colleagues he believes the time is right for year-round sales but noted the issue falls under the jurisdiction of the House Energy and Commerce Committee. Bower addressed the outlook for the issue and the chances for future congressional action.
Beyond policy, Bower spoke about geopolitical tensions slowing shipping through the Strait of Hormuz and the potential pressure that the global fertilizer supply chains could face as farmers prepare for spring planting. He also shared an update on current conditions in Ohio and offered his outlook for the upcoming planting season.
Finally, Bower recapped highlights from Commodity Classic, which recently wrapped up in San Antonio, and discussed why the event remains an important gathering for the agricultural industry.
Fuel Prices Shock Farm Inputs at Spring Planting
As Bower discussed in his interview, the Strait of Hormuz is closed again today for most commercial shippers, which has driven fuel prices higher over the last week, with some states seeing diesel prices rise more than a dollar per gallon. Analyst Patrick DeHaan at GasBuddy says we’re staring down prices we have not seen since last summer.
“As a result of oil jumping, we’re also seeing big increases in the price of gasoline, diesel, and jet fuel,” DeHaan said. “All of those are likely to jump here in the days ahead. The national average could rise anywhere from 10 to 25 cents over the next week or two. And for diesel, it’s even a bit more ominous. Saudi Arabia is shutting down a major refinery, a major producer of diesel, because of a drone attack. Diesel prices are now skyrocketing by 40 cents a gallon.”
With fuel prices climbing as fast as they are, DeHaan says they could also reverse course just as quickly: “Consumers are likely to be faced with increased gasoline, diesel, and jet fuel prices here in the days ahead. But if the situation reverses for the better, oil prices may eventually go down just as quickly as they went up.”
Looking at AAA fuel prices, diesel is holding at $4.16 per gallon as of Thursday morning. Just yesterday, it was $4.03. One week ago, that same gallon was $3.89, and a year ago it cost $3.65.
Right now, the national average for a gallon of E15 is $2.59. While biofuels like E15 are not a one-to-one replacement for diesel or gasoline, the cost comparisons alone speak volumes.
