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Tariffs Hit U.S. Biofuel Supply Chain

Apr 17, 2025
By Farms.com

Rising Feedstock Costs Impact Green Fuel Goals

The U.S. biofuel industry is under pressure as tariffs on key imports disrupt the supply chain for renewable energy producers. LanzaJet Inc., aiming to be the first commercial producer of green jet fuel from ethanol, finds its plans affected by new U.S. tariffs on Brazilian ethanol. 

Located in Georgia, the plant had hoped to rely on climate-friendly ethanol imports from Brazil. However, US-made ethanol doesn't meet the low-carbon standards to qualify for the federal 45Z tax credit.

“If this tariff holds true on ethanol imports, the result is a higher cost SAF product that we are making in the U.S.,” said Jimmy Samartzis, CEO of LanzaJet. “There is no alternative for a US-produced ethanol that qualifies.”

The tariffs reflect a wider challenge in U.S. biofuel policy. They create uncertainty for importers, increase costs for green fuel projects, and may invite retaliatory measures from trade partners.

Used cooking oil (UCO), mostly imported from China, has also come under scrutiny. With imports rising to 2.8 billion pounds in 2024, the former administration has restricted UCO from qualifying for tax credits, fearing fraudulent shipments.

These twin setbacks — tariffs and restrictions — are straining the renewable diesel industry. The shift may open new opportunities for U.S. soybean farmers. As UCO becomes less attractive, soy oil could rise in value and demand.

Experts urge the government to align biofuel incentives with domestic agriculture. CHS Inc.'s Ken Zuckerberg summarized the moment: “It’s a remaking of the ag order.”


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Kansas Wheat Harvest 2026 | Three John Deere S7 700 Combines in Action

Video: Kansas Wheat Harvest 2026 | Three John Deere S7 700 Combines in Action

Kansas Wheat Harvest 2026 is underway near Alden, Kansas!

In this video, I spend time with Frederick Harvesting, a custom harvesting operation based in Alden, Kansas. Back at their home farm, three new John Deere S7 700 combines equipped with John Deere HDF40 draper heads work through a drought-stricken winter wheat crop while one of the farm's John Deere 8R 370 tractors pulls a Brent 1398 grain cart.

Most of the Frederick Harvesting crew was already busy cutting wheat in southwest Kansas, but these machines remained at home to finish up local fields. Throughout the video, I explain what is happening, discuss the effects of dry conditions on the crop, and capture plenty of aerial footage showing the combines working with the grain elevator at Alden in the background.