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Aug. 5, 2026 BrownfieldAgNews reports: Record U.S. EPA blending requirements for biodiesel and renewable diesel are fueling another round of soy crush expansion. Scott Gerlt with the American Soybean Association tells Brownfield "Biofuels production really had to catch up in in a big way and we have seen that, but they really need a lot of feedstocks to do that. That's really pulled up demand very strongly for soybean oil." ADM said last week it plans to upgrade four existing plants in the next three years, adding 700,000 metric tons of annual crush capacity. Those facilities are in Indiana, Missouri, Nebraska and North Dakota. He says even before the announcement, farmers were benefitting from increased crush and biofuels production at existing facilities. ASA says there are currently 68 soy crush plants in the United States. Gerlt says farmers with a crush plant nearby receive higher local basis. University of Illinois and Purdue University research suggest an average improvement in basis of 25 cents per bushel. "Right now we're seeing some even stronger effects if your crush plant is next to a biodiesel plant. I'm located in Missouri, so I tend to watch some of the Missouri soybean basis. There was one crush plant in particular in Missouri that was connected to a biodiesel plant and they were paying one dollar over board prices." He says he expects soybean crush to remain strong into the next five years, but a lot of that depends on what happens with biofuels policy. "We have really good blending level numbers for this year and next year. I think the industry is showing that we can meet those levels." Gerlt says the EPA is now working on Renewable Volume Obligations, which set the blending requirements, for 2028 and beyond. Tweet |
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