Farmers to President Trump: Biofuels policy and broadening exports key to farm profitability

January 29, 2026 | Bethany Baratta

Iowa’s soybean farmers delivered a clear message to President Trump during his visit to Iowa this week—action is needed to improve biofuels policy and expand markets. Losing out on biodiesel plants, export opportunities and farm profitability may otherwise be in the future across rural Iowa.

1. Biofuels: RFS and 45Z

"Ongoing delays on the Renewable Fuel Standard volumes and 4Z guidance on tax incentives are forcing our independent, locally owned biodiesel plants to shut down or pause operations—and once they close, they man never reopen," says Grant Kimberley, executive director for the Iowa Biodiesel Board and senior director of market development for the Iowa Soybean Association (ISA).

Iowa’s biodiesel plants produced 244 million gallons in 2025, down 31% from 353 million gallons in 2024, according to recent reports. This was due in part to both low Renewable Fuel Standard (RFS) blending levels and a lapse in federal tax policy.

"We need the Trump administration to finalize these rules immediately so our plants can survive, our farmers can thrive, and rural Iowa doesn’t get left behind in America’s energy future," Kimberley says.

2. Expanding markets for soy

In addition to resuming soybean sales to China, the world's largest purchaser of globally traded soybeans, broadening trade relations with other markets is a priority, says ISA President Tom Adam. Iowa processes 85% of the soybeans grown here, so strengthening export volumes of soybean meal is a priority, he says.

"Expanding international and domestic markets for Iowa and U.S. soybeans is essential to the industry's economic stability," says Adam, a farmer near Harper.

While ISA recognizes that the Farmer bridge Assistance Program may provide some short-term relief, lasting progress will come from policies that address the industry’s underlying challenges, Adam says.

"Priority areas include reducing the cost of key inputs, increasing demand for soybeans by incentivizing expanded biofuels production and use, and restoring and strengthening trade relationships with key purchasers of U.S. soy," he says. "With Iowa farmers preparing to plant this years' crop, timely and tangible progress on these priorities is critical as many continue to struggle to pencil out a profit."

Written by Bethany Baratta.

---

Back