Proposed refinery exemptions could cut biodiesel demand and cost soybean farmers nearly $1 billion
JEFFERSON CITY, Mo. — Missouri soybean leaders are asking President Donald Trump to protect the Renewable Fuel Standard as the Environmental Protection Agency considers additional exemptions for small oil refineries.
The Missouri Soybean Association says expanded small refinery exemptions could weaken demand for soybean oil used in biodiesel and renewable diesel. The group estimates the proposal could eliminate nearly 500 million gallons of biomass-based diesel demand and cost American soybean farmers close to $1 billion.
The warning follows reports that refinery exemptions for the 2025 compliance year could total more than 1.8 billion Renewable Identification Number credits. That would be nearly twice the amount EPA anticipated when it established renewable fuel requirements for 2026 and 2027.
Missouri soybean farmers previously supported the administration’s record renewable volume obligations. Those requirements strengthened domestic demand for soybean oil while encouraging additional investment in renewable fuels.
Association President Cody Brock said granting more exemptions could reverse that progress at a time when farmers are already facing tight margins.
“Missouri soybean farmers supported the president’s actions this past spring because they bolstered U.S. markets, strengthened rural economies and reinforced America’s energy independence,” Brock said.
Brock urged Trump to maintain his support for domestic agricultural products and reject any proposal that would reduce previously established renewable fuel demand.
The Renewable Fuel Standard requires transportation fuel sold in the United States to contain a specified amount of renewable fuel. Small refineries may seek exemptions when they can demonstrate that meeting the requirements would create disproportionate economic hardship.
Missouri soybean leaders argue that granting exemptions beyond EPA’s original estimates would shift the financial burden onto farmers while weakening one of the soybean industry’s most important domestic markets.