The American Soybean Association is warning that additional small refinery exemptions under the Renewable Fuel Standard could significantly reduce demand for soybeans and cost farmers about $1 billion in revenue.
Reports indicate exemptions for the 2025 compliance year could exceed 1.8 billion Renewable Identification Number credits, commonly known as RINs. That would be nearly twice the number of exemptions the Environmental Protection Agency anticipated when establishing current renewable fuel blending requirements.
The association estimates exemptions of that size could eliminate demand for approximately 500 million gallons of biomass-based diesel. Soybean oil is a major feedstock used to produce biomass-based diesel, making the biofuel industry an important domestic market for soybean farmers.
American Soybean Association Vice President and Iowa farmer Dave Walton said producers are already facing difficult financial conditions and cannot afford to lose one of their most important sources of domestic demand.
The association is urging President Donald Trump and the EPA to reject an expansion of small refinery exemptions and preserve the biofuel demand expected from higher renewable fuel blending requirements.
Small refinery exemptions allow qualifying refineries to avoid some Renewable Fuel Standard obligations if they can demonstrate that compliance would cause disproportionate economic hardship.