(Photo: Iowa Soybean Association / Joclyn Kuboushek)
Soybean industry urges administration to protect domestic market opportunities
November 13, 2025 | Bethany Baratta
As talks of announced agreements with China and others are cheered, the United States must promote opportunities that would expand domestic markets for U.S. soy, the American Soybean Association (ASA) and National Oilseed Processors Association (NOPA) urged the Trump administration earlier this week.
Finalizing policies that will boost biofuel production while promoting the utilization of domestic inputs like soybean oil must be a priority, ASA and NOPA leaders said in a letter addressed to President Donald Trump this week.
“It is critical the administration finalizes its proposal to limit Renewable Fuel Standard credit generation for foreign feedstocks and biofuels,” ASA CEO Steve Censky and NOPA CEO Devin Mogler said.
Approximately half of the soybean oil processed in the U.S. is used for biomass-based diesel production. Unfortunately, leaders say, soybean oil is now losing out to feedstocks deemed “waste” like used cooking oil and beef tallow, which are predominately imported and incentivized in West Coast low carbon fuel programs.
“These state policies have pushed soybean oil and other domestic agricultural products into becoming residual feedstocks—or the feedstock of last resort,” they said.
The EPA’s Renewable Fuel Standard proposal for 2026-2027 included historic increases for biomass-based diesel. Included were mechanisms to stem the growing surge of imported “waste” feedstocks, which flood the U.S. market and drive U.S. soybean prices lower.
The One Big Beautiful Bill Act amended the 45Z Clean Fuel Production Credit by removing provisions that penalized U.S. farmers while limiting eligibility to fuels produced using North American feedstocks, the letter notes. These policies will drive additional soybean processing investments domestically while boosting biofuel production—a key value-added domestic market for U.S. soy.
Censky and Mogler urged specific actions that would support the domestic soybean market:
- By the end of 2025, EPA finalize 2026-2027 renewable volume obligations as proposed, including implementing provisions to disincentive fuel and feedstock imports
- Full accounting for waived volumes from 2023-2025 small refinery exemptions
- U.S. Department of the Treasury officially recognize the new 45Z tax guidance that corresponds to the One Big Beautiful bill Act revisions signed into law
“The biofuels industry needs certainty before 2026 to actualize new investments. Finalizing these policies can’t wait.”
Read the letter here.
Written by Bethany Baratta.
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