New EPA Targets Could Power Up Iowa's Soybean Industry

June 13, 2025 | Brock Johnston

Ankeny, Iowa – The Iowa Soybean Association (ISA) today welcomed biodiesel growth proposed by the Environmental Protection Agency (EPA) in the federal Renewable Fuel Standard for 2026 and 2027. The agency has proposed 5.61 billion gallons and 5.86 billion gallons for biomass-based diesel, which, if finalized, would mark a significant volume increase for biomass-based diesel and overall advanced biofuel volumes compared to recent years.

Brent Swart, ISA president and farmer from Spencer, issued the following statement:

“We are pleased to see the EPA’s announcement proposing a Renewable Volume Obligation of 5.61 billion gallons and 5.86 billion gallons for biomass-based diesel. This is a significant step toward putting the market back on track. It is also a long overdue recognition that Iowa farmers, soybean processors and the state’s biodiesel producers, can contribute even more the America’s energy output.

“We thank the Trump administration for taking action that emphasizes the value of domestically produced renewable fuels and supports farmers’ critical role in our nation’s energy policy. This timely announcement provides added certainty for our industry during the growing season, which can often be unpredictable for many farmers. While we are encouraged to see volume targets increase from previous years, Iowa farmers stand ready to grow the feedstock needed to produce greater volumes of clean fuels.

“Biomass-based diesel has long provided significant value to soybean farmers, helping us weather difficult economic times and supporting our state’s thriving agriculture industry. By increasing soybean oil value, biomass-based diesel supports roughly 10% of the price per bushel of soybeans. We look forward to engaging with the White House, EPA, and other stakeholders, to grow markets for American farmers.”

Swart also thanked Iowa’s Congressional delegation, including Senators Chuck Grassley and Joni Ernst and Representatives Ashley Hinson, Mariannette Miller-Meeks, Randy Feenstra and Zach Nunn, for standing with Iowa’s soybean farmers and biodiesel producers.

Iowa is the nation’s leading biodiesel-producing state and soybean oil producer. The two billion pounds of soybean oil used to produce biodiesel in the state in 2024 were equivalent to the oil from nearly 178 million bushels of soybeans–or more than 30% of the state’s soybean crop. According to a study by Decision Innovation Solutions, biodiesel contributes $123 million in labor income, $520 million in value added and $2.2 billion in total output (sales) to Iowa’s economy.

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Not funded by the soybean checkoff

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The Iowa Soybean Association (www.iasoybeans.com) is “Driven To Deliver” increased soybean demand through market development and new uses, farmer-focused research and results, timely information and know-how and policy initiatives enabling farmers and the industry to flourish. Founded in 1964 by farmers to serve farmers, ISA is governed by a board of 22 farmers to advocate on behalf of the state’s 37,000 soybean producers, including more than 15,000 ISA farmer members and industry stakeholders.

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