By Jamie Martin
Kansas agriculture leaders, biofuel partners, and national officials recently gathered to highlight the growing role of renewable fuel policies in supporting the state’s soybean sector. During the event, state representatives emphasized that strong federal action is essential to keep renewable fuel markets stable and productive.
“This event showcased the significant domestic market opportunity for US soybean farmers through strong federal biofuel policies like the Renewable Fuel Standard and the 45Z tax credit,” said KSA president Brett Neibling. “We are thankful to the Trump Administration for the robust Renewable Volume Obligations (RVOs) proposed, and it is time to get those volumes finalized and across the finish line. These rules will provide a substantial boost to biodiesel and renewable diesel demand, build demand for soybean processing, and support farm families across Kansas and the rest of the country."
Programs such as the Renewable Fuel Standard and the 45Z tax credit help ensure steady demand for biodiesel and renewable diesel. Leaders explained that finalizing proposed Renewable Volume Obligations would strengthen industry confidence, increase soybean processing, and support family farms across the state. These policies play an important role in reducing energy dependence, improving fuel availability, and creating long-term market opportunities for farmers.
Biofuels contribute significantly to the value of each soybean grown in the United States. Biomass-based diesel production provides about 10 percent of the value of every bushel. For Kansas producers, this translated into roughly $149 million in 2024, showing how renewable fuel markets directly support farm income.
Kansas benefits from a strong renewable fuel presence, with both biodiesel and renewable diesel facilities operating in the state. Combined, these plants add more than $1 billion to the state economy each year. Their activity supports local workers, transportation services, and fuel distribution networks.
The state’s soybean industry has also expanded with the opening of two new processing facilities last year. These plants nearly doubled the state’s total crush capacity, driven in large part by growing interest in renewable fuels. Increased processing capacity means more opportunities for farmers to market their crops locally and benefit from rising demand.
Kansas leaders say continued support for renewable fuels will help strengthen rural communities and create long-term economic stability. With expanding processing plants, strong national policies, and growing biofuel use, Kansas soybean farmers are well positioned for future success.
Photo Credit: istock-urpspoteko
Categories: National