Strong federal policies boost biodiesel and farm opportunities in Kansas
Agriculture leaders in Kansas joined with biofuel industry representatives to discuss how supportive federal policies are strengthening opportunities for soybean farmers. During a recent visit from national officials, Kansas Soybean Association leaders spoke about the importance of stable biofuel rules and the benefits these policies bring to rural communities.
“This event showcased the significant domestic market opportunity for US soybean farmers through strong federal biofuel policies like the Renewable Fuel Standard and the 45Z tax credit,” said KSA president Brett Neibling. “We are thankful to the Trump Administration for the robust Renewable Volume Obligations (RVOs) proposed, and it is time to get those volumes finalized and across the finish line. These rules will provide a substantial boost to biodiesel and renewable diesel demand, build demand for soybean processing, and support farm families across Kansas and the rest of the country."
They explained that strong federal programs, such as the Renewable Fuel Standard and the 45Z tax credit, help expand markets for biodiesel and renewable diesel. These policies ensure reliable demand for soybean oil and encourage continued investment in renewable fuel production. According to the association, finalizing proposed Renewable Volume Obligations would provide additional certainty for producers and help support long-term market growth.
Biofuels play a major role in supporting rural jobs, reducing energy costs, and increasing domestic energy security. Biomass-based diesel production is especially important for farmers, contributing around 10 percent of the value of every bushel of soybeans grown in the United States. For Kansas farmers, this value reached an estimated $149 million in 2024, demonstrating the strong connection between renewable fuels and farm income.
Kansas is also home to both biodiesel and renewable diesel facilities. Together, these plants generate more than $1 billion in economic impact for the state each year. Their operations support local employment, transportation networks, and service industries. In addition, two new soybean processing plants recently opened in Kansas. These facilities nearly doubled the state’s processing capacity and were developed largely because of growing demand for biofuels.
Leaders noted that continued focus on renewable fuel development will help Kansas remain competitive while expanding opportunities for future generations. With strong markets, expanding processing infrastructure, and supportive national policies, soybean producers across Kansas are positioned for long-term success.
Photo Credit: istock-urpspoteko