Improving biofuel market access for farmers

Nearly three decades ago, visionary farmers from Iowa and other states saw untapped potential in soybean oil. Supplies of the coproduct of soybean production were ample as markets lagged. So, the farmers took action by using it for fuel.

Their strategic investments and collaborative research, supported by checkoff dollars, transformed soybean oil into a nearly $20 billion bio-based diesel market, encompassing biodiesel and renewable diesel. These pioneering efforts strengthened agricultural markets and significantly boosted commodity prices, benefiting farming communities nationwide.

Thirty years later, agriculture stands at another pivotal moment. Initially driven by early policies favoring traditional agricultural feedstocks, the global biofuel market has shifted toward feedstocks perceived as more sustainable, such as used cooking oil (UCO), animal fats (tallow), and distillers corn oil. The shift has complicated market access for crop-based biofuels by imposing stringent farm-level certification, data management and carbon verification requirements.

Meanwhile, broader global trends add urgency. Population growth, historically a reliable driver of agricultural demand, is slowing, while global energy consumption continues its rapid rise. In the United States, a renewed emphasis on domestic energy independence has sparked considerable investment in biofuel infrastructure and production, much of it driven by major oil and gas companies aggressively expanding into renewable diesel. This dynamic, expands biofuel feedstock demand but creates intense competition among fuel producers.

Recognizing this critical moment, agricultural organizations understand the need to realign farmers’ influence within bioenergy markets. Leading agricultural groups including the Iowa Soybean Association, American Soybean Association, the United Soybean Board and Minnesota Soybean Association have united to launch Farmers Fueling the Future (FFF). Other state soy-centric soybean organizations are also considering support. Initiated by soybean-focused groups, the initiative is committed to advancing the interests of all farmers producing biomass for biofuels.

The Mission

Placing farmers at the forefront emphasizes their primary role in biofuel market discussions. It also seeks constructive collaboration with energy and industry stakeholders. FFF’s mission is three-fold:  

1. To maximize market value for crop-based biofuels;
2. Ensure resilient and economically efficient agricultural systems, and;
3. Support research aimed at expanding crop-based biofuel demand.

This farmer-driven initiative focuses on developing innovative market access strategies, fostering market designs that reward sustainable agricultural practices, and ensuring markets remain viable and beneficial to farmers.

Farmers Fueling the Future emphasizes farm-centered approaches, encouraging research into sustainable and efficient biomass production practices. By championing robust, resilient feedstock supplies, FFF aims to shape biofuel markets that reward rather than penalize farmers’ sustainability efforts. Through strategic collaboration, targeted research, and innovative market solutions, FFF aims to secure the economic prosperity of agriculture, reinforcing its central role in America’s sustainable energy future.

The Vision

FFF will serve as a key forum to facilitate discussion and establish collaborative research between farmers and new and existing partners. This includes agricultural organizations, the traditional petroleum industry, universities, airlines, fuel consumers, and environmental groups. Fostering these critical partnerships ensures that diverse perspectives inform market strategies and innovations, aligning agricultural production with broader industry and environmental goals.

This initiative is not intended to replace or compete with any existing commodity or fuel trade associations at the state or national levels. Instead, it will complement their efforts by focusing on feedstock supply issues, coordinating and amplifying their efforts to protect and grow bioenergy markets for farmers. By coordinating state and national commodity organizations of all stripes, alongside key industry partners, we believe we can help enable a resilient and growing biofuel market for row-crop farmers for decades to come.

With broad support across the agricultural spectrum, FFF unites farmers, researchers, and industry experts under a shared vision. The initiative not only seeks to protect farmers' market positions but also positions agriculture as a cornerstone of sustainable energy production, vital to vibrant and resilient farming communities across America.

Three Key Focus Areas

1. Indirect Land Use Change (ILUC)

Lead the coordinated research and development of alternative approaches to indirect land use change assessment in U.S. biofuel markets while supporting research to reduce the ILUC scores using current modeled approaches.

2. Reducing Direct Greenhouse Gas Emissions

Coordinate and commission research to support the reduction in carbon intensity scores for domestic soy, canola, corn and other member crops. Work with initiative partners to ensure that carbon intensity scoring methodologies reflect and prioritize sound agronomic practices that promote a resilient and robust food and feed market.

3. Improve Access for Crop-Based Biomass and Crop-Based Fuels

Support efforts to gain market access for member biomass in biofuel markets when appropriate (e.g. soybean oil, canola oil, etc.). Coordinate dialogue between the biodiesel, renewable diesel, and oil industry to update labeling rules which are limiting farmers access to lucrative incentives in the west coast and Midwest markets.

By Matt Herman, mherman@iasoybeans.com