Protecting and growing biofuel demand is among policy priorities this fall for ASA 

By Blair Shipp, American Soybean Association 

Fall is shaping up to be a busy stretch for agricultural policy in Washington. With lawmakers facing a short legislative window before leaving Washington ahead of the midterm elections, the American Soybean Association is focused on issues that could shape soybean demand and farm policy well beyond harvest. Biofuels are at the top of that list, alongside the farm bill, trade and federal regulations. 

Late this summer, small refinery exemptions under the Renewable Fuel Standard became a major focus for ASA and the broader biofuels industry. ASA learned the administration was considering an approach that could have significantly reduced domestic biofuel demand by allowing more refineries to avoid their blending obligations without fully making up the lost gallons. 

ASA estimated that failing to fully reallocate exempted volumes could eliminate demand for roughly 500 million gallons of biomass-based diesel and result in nearly $1 billion in lost value for soybean farmers. ASA, state soybean associations, farmers, biofuel groups, and members of Congress quickly engaged with the administration to emphasize what was at stake. 

EPA ultimately announced decisions on small refinery exemptions for the 2025 compliance year and committed to a rulemaking process to address reallocation of the exempted volumes. ASA welcomed that commitment and is pushing for full reallocation. When gallons are waived, making up those volumes elsewhere is critical to preserving the demand intended under the Renewable Fuel Standard. 

There has also been progress on the 45Z Clean Fuel Production Credit. In September, the Department of Energy released updates to the 45ZCF-GREET model that recognize certain regenerative agricultural practices, while the IRS provided additional emissions-rate guidance. 

ASA welcomed those steps and is working to ensure farmers can benefit from the credit. A key priority is a flexible book-and-claim system that would allow farmers who adopt qualifying practices to receive value without requiring their soybeans to remain physically segregated throughout the supply chain. Getting implementation right could create new value for farmers and strengthen the role of U.S. soybean oil in domestic fuel production. 

Keeping the Farm Bill moving 

The push for a new five-year farm bill is also continuing this fall. The Senate Agriculture Committee released its framework this summer, but the legislation did not advance during an August committee markup. 

For soybean growers, the farm bill reaches beyond the traditional farm safety net. ASA priorities include conservation, agricultural research, international market development, precision agriculture, rural energy, and other programs that support farms and expand opportunities for U.S. soy. 

Soybean farmers joined other commodity groups in Washington in September to take that message directly to lawmakers. With limited legislative time before the midterm election recess, the focus is on returning to bipartisan negotiations and moving a comprehensive five-year bill forward. 

Maintaining markets for U.S. soy 

Trade is another major focus as the 2026-27 marketing year gets underway. China remains the largest export market for U.S. soybeans and has committed to purchase 25 million metric tons annually through 2028. Ensuring those commitments translate into soybeans moving to customers remains a priority. 

As of mid-September, ASA was looking ahead to an anticipated Sept. 24 meeting between President Donald Trump and Chinese President Xi Jinping. The meeting comes as China has stepped up purchases of U.S. soybeans, and ASA is looking for continued progress toward dependable, long-term market access for American farmers. 

Closer to home, trade tensions between the United States and Canada have increased, with both countries imposing new tariffs on a range of products. U.S. soybeans have not been directly targeted in the latest round of Canadian retaliatory tariffs, but the dispute underscores the importance of stable trading relationships with our closest agricultural partners. 

That is particularly important as the United States, Mexico, and Canada move through the 2026 review of the U.S.-Mexico-Canada Agreement. Canada and Mexico accounted for $4 billion in U.S. soy complex exports in the 2024-25 marketing year, representing more than 13 percent of total U.S. soy exports. ASA has emphasized preserving duty-free access for soy and soy products, maintaining science-based trade rules, and providing long-term certainty through USMCA. 

ASA also strengthened its trade policy team in September with the addition of David Johanson as international trade advisor. Johanson brings extensive international trade and agriculture experience, including nearly 15 years at the U.S. International Trade Commission. His addition comes as ASA works to protect established markets, navigate trade challenges, and expand opportunities for U.S. soy. 

Seeking regulatory clarity 

Regulatory issues are moving as well. In September, EPA issued a supplemental proposal related to its definition of waters of the United States, or WOTUS, reopening discussion around key definitions used to determine which waters fall under federal jurisdiction. 

ASA supports a clear, workable definition that protects water resources while allowing farmers to understand which features on their land are subject to federal regulation. ASA is reviewing the proposal and will provide feedback to EPA as the rulemaking moves forward. 

The weeks ahead provide a narrow window to make progress on issues that matter to soybean farmers. Whether that means protecting domestic biofuel demand, opening doors for U.S. soy overseas, or moving long-awaited legislation forward, ASA will remain engaged in Washington to turn policy decisions into meaningful opportunities for soybean growers.