The Minnesota Soybean Growers Association joins industry partners, including the American Soybean Association, in expressing deep disappointment amid reports that small refinery exemptions for the 2025 Renewable Fuel Standard (RFS) compliance year could far exceed previous government projections, delivering a major blow to domestic biofuel demand when Minnesota and U.S. soybean farmers can least afford it.

Recent reports and analysis indicate small refinery exemptions from RFS compliance year 2025 could total more than 1.8 billion Renewable Identification Number (RIN) credits under a newly revised methodology being developed. Such a massive volume of RFS compliance exemptions would be nearly double what the U.S. EPA had assumed when it published the final 2026-2027 Renewable Volume Obligation Rule. The final biofuel blending rule published earlier this year by the Trump administration included historic increases in biofuel volumes, boosting domestic demand for biofuels and U.S. soybeans. ASA and MSGA applauded President Trump and EPA for supporting policies that drive demand, encourage industry investment, and improve local on-farm basis.

If EPA approves small refinery exemption petitions at levels that significantly exceed EPA’s earlier assumptions embodied in current biofuel blending rules, the result will be long-term damage that effectively undercuts the positive actions taken by the Trump Administration. The significant increase in biofuel volumes exempted from the RFS could eliminate around 500 million gallons of biomass-based diesel demand, cost U.S. soybean farmers approximately $1 billion in lost revenue, and put oil refiner interests ahead of farmers, rural communities, and expanded domestic biofuel supplies.

“The biofuels market – an industry which Minnesota has helped lead for over 20 years – can ill afford to go backwards at this critical point in time,” MSGA President Ryan Mackenthun said. “Times are already tough in farm country, and issuing such a rise in small refinery exemptions would be a huge blow to our industry during a time when we’re already facing a number of economic struggles ahead of harvest. Like my fellow farmers, I’m optimistic at heart, and I strongly urge the Trump administration to continue their commitment to U.S. farmers by strongly rejecting these reported actions.”

Biomass-based diesel provides a critical and growing domestic market for soybean oil, supporting soybean prices, rural jobs, and economic activity across the country. The reported small refinery exemption actions would run counter to the administration’s stated goals of strengthening American energy dominance, expanding domestic energy production, and supporting rural economies. American-grown biofuels diversify the nation’s fuel supply while creating a reliable domestic market for U.S. agriculture. If enacted by the EPA, the refinery exemptions could eliminate roughly 500 million gallons of biomass-based diesel demand and cost U.S. soybean farmers approximately $1 billion in lost revenue.

ASA has long advocated for the denial of compliance waivers, or small refinery exemptions, which erode the integrity of the RFS by reducing biofuel demand and impacting farmers by lowering the value of soybean crops. Biodiesel helps raise the value of soybeans by over $1 per bushel.

ASA is urging President Trump and White House officials to reject any proposal that seeks to broaden the formula used to determine refinery exemptions from biofuel blending requirements in a way that would hurt farmers and erase demand for biofuels. Instead, ASA urges the administration to maintain exemptions no greater than what the EPA estimated using historically backed market data when it published the current biofuel blending rule.

Minnesota farmers are encouraged to visit the Soy Action Center and urge the Trump administration to reject an expansion of small refinery exemptions. Farmers are encouraged to personalize the provided message by explaining how reduced soybean and biofuel demand would negatively impact their family farms and communities.