New Biodiesel Mandate Expected to be a Boon for U.S. Soy Farmers

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SASKATOON — Biodiesel and renewable diesel producers in the United States are feverishly ramping up production, says a senior industry official.

Kurt Kovarik, vice-president of regulatory affairs with Clean Fuels Alliance America, said his member companies are gearing up to meet the U.S. Environmental Protection Agency’s (EPA’s) new Renewable Volume Obligations (RVOs) for 2026 and 2027.

In March, the EPA set the blending mandate for biodiesel and renewable diesel to 5.4 billion gallons in 2026 and 5.5 billion gallons in 2027.

That is a staggering increase from the 2025 level of 3.35 billion gallons.

Kovarik said plants had been operating at 50 to 60 per cent of their capacity in 2025 due to the low RVO and uncertainty surrounding tax policy.

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Those plants essentially have nine months to meet 12 months of the new RVO.

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The new RVOs are expected to be a huge boon for the nation’s 500,000 soybean farmers and the crushers that process their crops.

Greg Anderson, a Nebraska corn and soybean farmer, remembers when soybean prices were US$4 per bushel and soybean oil sold for $0.10 per pound before the biofuel industry took off in the U.S.

These days demand from the biodiesel and renewable diesel sector accounts for 10 per cent of the value of the soybeans he grows.

That contributed $300 million to his state alone this past marketing year.

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The U.S. is producing an additional 10 million tonnes of soybean meal than it was a few years ago.

Schaffer said there has been a surprising increase in domestic consumption of the product.

“We’re sticking more meal into every chicken and pig in the United States than we’ve ever done before,” he said.

But there is still a need for increased exports.

Kovarik was asked if the U.S. will be able to meet the RVOs exclusively with domestically produced feedstocks. He said it’s too early in the new regime to answer that question.

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