March 27, 2026, 6:33 p.m. ET
The Trump administration on Friday, March 27, finalized new biofuel blending volumes for U.S. oil refiners, requiring more of the fuels made from corn, soybeans and other agricultural products than initially proposed, giving U.S. farmers a much desired win.
The U.S. Environmental Protection Agency said it will require refiners to blend a record 25.82 billion gallons of biofuels, including 15 billion gallons of corn ethanol, into the nation’s fuel supply this year. Blending requirements are slated to grow to 25.98 billion gallons next year.
That’s good news in Iowa, the top U.S. corn, ethanol and biodiesel producer. About half of the state’s annual corn crop is used to make ethanol.
“Today’s announcement is a great win for Iowa’s corn farmers and ethanol industry,” said Mark Mueller, a northeast Iowa farmer and president of the Iowa Corn Growers Association board, in a statement. “This rule ensures that Iowa-grown corn will continue to be a leader in supplying American made energy, while increasing corn grind and supporting local communities.”
President Donald Trump also made a series of announcements Friday designed to help U.S. farmers, facing a fourth year of losses due to high production costs and low crop prices. Adding to farmers’ challenges: Trump tariffs have reduced export markets, while the war in Iran have pushed fertilizer and fuel prices higher.
Here’s what to know about the EPA’s biofuels blending requirements, which the agency is required to set each year, under the Renewable Fuel Standard:
EPA estimates the rule will generate $10B for rural economies
U.S. Agriculture Secretary Brooke Rollins said in a statement Friday that the blending requirements will generate $31 billion for U.S. corn and soybean producers this year, $2 billion more than in 2025.
The EPA estimates the rule will generate roughly $10 billion for rural economies and create 100,000 new jobs in the agricultural and manufacturing sectors.
The EPA said that biodiesel and renewable diesel production and use will need to increase by about 60% over 2025 volumes. “This in particular will drive renewed demand for American soybean producers,” the agency said in a statement.
U.S. Sen. Joni Ernst, an Iowa Republican, said the biofuels announcement “underscores the Trump administration’s commitment to upholding the vital role homegrown biofuels and Iowa agriculture play in lowering fuel prices and bolstering our nation’s energy independence.”
EPA Administrator Lee Zeldin said in a statement the blending requirements create “a larger, more stable, and more reliable domestic market for U.S. crops, strengthening farm income and rural economies.”
The new requirements include 70% of around 2 billion gallons that had been waived in 2023-2025 under a program which allows exemptions for small refiners.
With Iowa plants closed, blending requirement gets biodiesel ‘back on track’
Noting that four Iowa biodiesel plants are closed or idled, U.S. Sen. Chuck Grassley, an Iowa Republican, said in a statement that raising the volume requirements will especially help Iowa biodiesel producers, which uses soybean oil and other products to make the renewable fuel.
“Raising RVOs to HISTORIC levels Gr8 news 4 Iowa farmers + biofuel producers & will help lower gas $,” Grassley said on X, formerly Twitter.
The Iowa Biodiesel Board said the blending mandate will help the industry “get back on track.”
“When biodiesel producers succeed, our farmers also succeed,” said Grant Kimberley, the Iowa Biodiesel Board’s executive director. “This strong biomass-based diesel volume is exactly what this industry needs to put idled capacity back to work and strengthen our domestic energy supply at a moment when the country needs it most.”
The Iowa Renewable Fuel Association said EPA’s volumes would require at least 5 billion gallons for biomass-based diesel like biodiesel.
Groups representing convenience stores and truck stops said Congress should consider reestablishing a biodiesel tax credit that expired in 2024 “to make diesel fuel — and all goods that move by truck — more affordable.”
“As the nation’s lawmakers seek urgent solutions to stabilize supply and mitigate fuel costs for consumers, they should turn to the solution we know works,” said David Fialkov, government affairs executive vice president for the National Association of Convenience Stores and SIGMA: America’s Leading Fuel Marketer, in a statement.
Farm leaders continue to push for year-round access to E15
Despite strong blending requirements, Iowa and U.S. farm leaders continued to urge Congress to make year-round access to gasoline blended with 15% ethanol available.
The Trump administration approved a waiver Wednesday, March 25, allowing for E15 to be sold this summer. Air quality regulations prevent E15 sales in some regions, but ethanol supporters say the science used for the restriction is outdated.
Efforts to pass year-round E15 access have stalled, despite Trump’s stated support.
“Now is the time for Congress to take the next step and make E15 blended gasoline available year-round, and we welcome the president’s push for Congress to take action,” said Zippy Duvall, the American Farm Bureau Federation president. “Drivers deserve a year-round choice of lower cost gasoline that will help grow the farm economy by boosting demand for corn by almost 50%.”
Iowa Agriculture Secretary Mike Naig said in a statement that “Iowa’s experience with E15 shows that when more biofuels are available, consumers choose them because they’re the most affordable option.
“This announcement, combined with the recent E15 emergency waiver, is a positive step forward. But Congress must finish the job by passing year-round nationwide E15,” Naig said. “It’s time to deliver long-term certainty for America’s drivers, farmers, biofuel producers, and fuel retailers.”
Reuters contributed to this report.
Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com.
