ASA urges quick action to protect biofuel demand and farm income
The American Soybean Association (ASA) has welcomed government efforts to address the impact of small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). The organization believes that reallocating Renewable Identification Numbers (RINs) removed through these exemptions can help maintain demand for biofuels and protect soybean farmers from financial losses.
According to ASA, approximately 1.8 billion RINs linked to 2025 refinery exemption petitions are expected to be reassigned to larger refiners during the 2026 and 2027 compliance period. This move is designed to prevent a decline in biofuel demand and support agricultural markets that depend on renewable fuel production.
The association had previously estimated that without full reallocation, biomass-based diesel demand could fall significantly. Such a reduction could negatively affect soybean growers, potentially leading to major revenue losses across the farming sector. By maintaining biofuel blending obligations, ASA believes soybean demand can remain strong, and market disruptions can be avoided.
“Soybean farmers greatly appreciate President Trump, Senator Grassley along with other biofuel champions in Congress, and USDA officials for sounding the alarm and working around the clock to ensure that soybean farmers and producers of homegrown biofuels are not negatively impacted by today’s SRE announcement,” said Dave Walton, ASA vice president and Iowa soybean farmer.
He added, “We appreciate the administration’s commitment to reallocating 100% of these additional exemptions and their intention to enter supplemental rulemaking soon, but timing is critical. Any delay in reallocation risks undermining the domestic market demand that soybean farmers urgently need as we enter harvest season. EPA must move quickly to fully reallocate these RINs and ensure soybean farmers are held harmless.”
ASA also acknowledged the role played by government leaders, agricultural officials, and lawmakers in raising concerns about the impact of refinery exemptions on biofuel feedstock producers. The organization noted that these efforts helped identify solutions aimed at protecting domestic soybean markets ahead of the harvest season.
Industry representatives emphasized that timely action is critical. They stressed that any delay in implementing reallocation measures could create uncertainty in biofuel markets and weaken demand for soybean-based products. Maintaining stable demand is especially important for farmers preparing for harvest and planning future production.
In addition, ASA has encouraged the Environmental Protection Agency (EPA) to consider full reallocation for expected exemption levels in 2026 and 2027. The organization believes that addressing exemption volumes across multiple years would strengthen the Renewable Fuel Standard and reduce the need for repeated regulatory updates.
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