By Patrick Thomas
Crop farmers and processors are poised to benefit from rules requiring more biofuels for use at the nation's gas stations and truckstops.
President Trump on Friday released long-awaited quotas that dictate how much biofuel made from crops must be blended into the gasoline and diesel supply. The regulatory requirement for U.S. refiners to blend billions of gallons of biofuel into fuel is closely watched by corn and soybean farmers.
It is also critical for companies such as Archer Daniels Midland, Bunge and Cargill, which buy crops from farmers and process grains and oilseeds into fuel, food ingredients and other products. ADM Chief Executive Juan Luciano said earlier this year that U.S. policy that enabled increased renewable diesel blending would help the company's profits in 2026.
At an event at the White House surrounded by farmers, ranchers and a gold-colored tractor, Trump said the higher renewable diesel and gas blending amounts would help bolster the U.S. fuel supply, while generating $10 billion for rural economies.
"It will come right out of the farms," he said. "You voted for me. I will never forget that."
Trump also said he was seeking congressional action to allow gas containing 15% of ethanol year-round and new loan guarantees for farmers. Shares of ADM and Bunge rose slightly on Friday.
Ohio farmer and National Corn Growers Association President Jed Bower called the new quota "a positive move."
Consumers might not see much of an impact at the gas pump. Some biofuels supporters say blending more can lower fuel costs for Americans. Increased blends of renewable diesel probably won't immediately impact American drivers, though higher ethanol contents in gas could help.
Biofuels such as renewable diesel are made from plant oils -- especially soybeans -- and animal fats.
The EPA sets the quota, known as the Renewable Volume Obligations, for how much soybean oil needs to be blended into fuels such as diesel annually. The agency is supposed to set the quota each year, but hasn't since 2024.
Farmers have been anxiously waiting for the release of new quotas, saying they could provide a much-needed increase in demand for crops such as soybeans. The farmers have been struggling with rising costs for inputs like fertilizer and a global glut of corn and soybeans that has depressed prices.
"These historically high volumes are expected to create a $3 to $4 billion dollar increase in net farm income," Agriculture Secretary Brooke Rollins said.
Some farmers have grown frustrated with how Trump's policies, such as far-reaching tariffs and the war with Iran, have hurt the agricultural economy. Support from farmers -- a loyal voting bloc for Trump and other Republicans in 2024 -- is critical ahead of the midterm elections.
The Trump administration pledged $12 billion in aid to U.S. farmers late last year, following a trade war with China that temporarily halted American soybean exports to the region. Many farmers ended up selling their freshly harvested soybeans for prices well below the cost of production.
Industry analysts expect crop prices to rise this year because of increased domestic demand for soybean oil, stemming in part from an expected increase in soybeans processed into biofuels. Soybean futures prices are up about 11% so far this year, according to FactSet.
Farmers are expected to plant more soybean acres this year than a year ago as a result of higher demand for soybean oil, a fertilizer supply crunch and the U.S. trade deal with China that the countries reached last year.
Write to Patrick Thomas at patrick.thomas@wsj.com
(END) Dow Jones Newswires
March 27, 2026 15:05 ET (19:05 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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