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US farmers challenge President's biofuel import strategy

Increased biofuel imports spark debate over domestic crop use.

By Farms.com

The administration's approach to biofuel production is causing a stir among American farmers due to its reliance on imports for materials like used cooking oil and beef fat.

This trend is decreasing the domestic demand for crops such as soybeans and corn, which are traditional feedstocks for biofuel.

This policy direction comes amid a range of incentives introduced under the landmark climate bill, which also supports state-level initiatives aimed at increasing the use of renewable and sustainable fuels.

While these measures intend to reduce carbon emissions, they inadvertently put American farmers at a competitive disadvantage.

The growing discontent among the farming community is particularly poignant as US farm income is expected to see its most substantial decline in nearly two decades.

This economic pressure is compounded by the political implications, with farmer frustrations potentially mobilizing rural voters in key electoral states.

Senators from both parties, including Democrat Sherrod Brown of Ohio, have voiced their concerns, urging the administration to reconsider the impact of these policies on domestic agriculture. They argue that the current measures are punitive and could lead to long-term negative effects on the agricultural sector.

Amid these challenges, the administration's policies have also faced criticism for the practical difficulties they pose to farmers. The required changes to farming practices to qualify crops for biofuel production are seen as unrealistic and overly restrictive.

As debates continue, the agricultural sector remains hopeful for policy adjustments that more favorably balance domestic interests with environmental goals.

The ongoing situation underscores the complex interplay between environmental policy and agricultural economics, with significant implications for the future of American farming.


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USDA took Trumps comments that China would buy more U.S. soybeans seriously and headline news that the U.S./China trade truce would be extended when Trump/Xi meet in the first week of April was a BIG WIN for soybeans this week! 2026 “Mini” U.S. ethanol boom thanks to 45Z + China’s ban of phosphates from Feb. – August of 2026 will not help lower fertilizer prices anytime soon! 30 mmt of Chinese corn harvest is of poor quality and maybe a technical breakout in wheat futures.

*Apologies! Where we talk about the latest CFTC update as of 10th Feb 2026, managed money funds covered their net short position in canola to the tune of +42,746 week-on-week to flip to net long 145 contracts and not (as we mistakenly said) +90,009 wk/wk to 47,408.