Reported Refinery Exemptions Could Undermine Domestic Soybean Demand

August 25, 2026 | Brock Johnston

Ankeny, Iowa — The Iowa Soybean Association is raising serious concerns over reported changes to small refinery exemptions under the Renewable Fuel Standard (RFS) that could significantly reduce domestic demand for biofuels made from U.S. soybeans.

Reports indicate exemptions for the 2025 compliance year could exceed 1.8 billion Renewable Identification Number (RIN) credits, nearly twice the level the U.S. Environmental Protection Agency anticipated when establishing current biofuel blending requirements. If approved, the increased exemptions could eliminate an estimated 500 million gallons of biomass-based diesel demand and cost U.S. soybean farmers approximately $1 billion in lost revenue during a period of already tight profit margins.

“The strength of the U.S. soybean industry depends on maintaining and expanding domestic markets for soybeans and soybean oil and reducing our reliance on China,” says ISA President Tom Adam, a soybean farmer from Harper. “Iowa farmers need certainty that policies supporting domestic biofuel demand will be upheld.”

Adam says President Trump made the right call for farmers and rural America when he set the current renewable volume obligations. Backtracking on his commitment to the farmers who supported him would be devastating and felt for months and years to come.

“We urge the administration to maintain a strong RFS and ensure refinery exemptions don’t erode the demand created by increased biofuel volumes.”

For Iowa’s soybean farmers, maintaining strong domestic demand for soybean oil is critical. Biomass-based diesel represents an important market for Iowa-grown soybeans, supporting soybean prices, farm income and economic activity throughout rural communities. Iowa is the nation’s leading producer of biodiesel and soybean oil. In 2025, Iowa used 1.68 billion pounds of soybean oil to produce 224.5 million gallons of biodiesel. This volume is equivalent to nearly 144 million bushels of soybeans, or roughly 24% of the state’s total crop.

ISA urges the administration to reject any attempt to expand the use of small refinery exemptions that would undermine the RFS, reduce biofuel demand and negatively affect soybean farmers.

To learn more, visit iasoybeans.com.

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Not funded by the soybean checkoff.

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The Iowa Soybean Association is Driven To Deliver market demand, production research, information and insights and regulatory action benefiting Iowa's 37,000 soybean farmers and the industry. For more information, visit iasoybeans.com.

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