New maritime fuel rules may open markets for U.S. ag feedstocks

New international shipping regulations aimed at reducing carbon emissions are opening doors for U.S. farmers by increasing demand for bio-based fuels like biodiesel and renewable diesel.

ProFarmer - Policy News Markets Update.jpg
Pro Farmer Policy News Markets Update
(Lindsey Pound)
  • New maritime fuel rules may open markets for U.S. ag feedstocks (Agri-Pulse): New international shipping regulations aimed at reducing carbon emissions are opening doors for U.S. farmers by increasing demand for bio-based fuels like biodiesel and renewable diesel. These fuels, often made from soybean oil and other agricultural products, could soon be used to power ocean-going vessels if proposed policy changes are adopted. This shift could create a major new market for biofuel feedstocks grown right here on American farms.

    Currently, outdated rules prevent marine fuel users from claiming key biofuel credits (RINs) under the Renewable Fuel Standard, which discourages shipping companies from using these greener options. However, lawmakers and industry leaders are pushing for regulatory changes to fix that. If successful, this would drive stronger demand for crops like soybeans and corn, giving farmers more stable prices and additional market opportunities—particularly at a time when many in agriculture are facing tightening margins and global competition.

    While this is a promising development, it’s not without hurdles. Infrastructure, sustainability concerns, and policy delays could slow the rollout of marine biofuels. Still, farmers stand to benefit significantly if the shipping sector turns to American-grown fuels as part of its decarbonization efforts. With the right support, this could be a win for both rural America and global environmental goals.

  • Government shutdown delays farm aid package (Farm Policy News): The Trump administration quietly delayed plans to announce new farm aid due to a government shutdown. Up to $13 billion may be redirected from USDA funds to support farmers impacted by tariffs and economic challenges. Although no final decision has been made, aid could come in multiple rounds. Lawmakers say the Commodity Credit Corporation fund is nearly tapped out, so further legislative action may be needed. Sources estimate the total aid could reach $15 billion, primarily helping soybean and other commodity producers.