by Kip Eideberg, Senior Vice President, Government & Industry Relations, Association of Equipment Manufacturers --
Editor’s Note: This was originally published by The Hill, a top U.S. political website read by the White House and more lawmakers than any other site – vital for policy, politics, and election campaigns. It is being republished here with their permission.
American agriculture is at a crossroads. With few new free trade agreements in place and global markets increasingly shaped by geopolitical tension, U.S. farmers face shrinking access to international buyers. At the same time, American consumers are grappling with persistent affordability challenges, especially in food prices.
Now, the Trump administration has an opportunity — indeed, an obligation — to address both problems simultaneously by prioritizing renewable fuels such as biodiesel, renewable diesel, ethanol and sustainable aviation fuel. In a recent trip to Iowa, President Trump already pledged to support ethanol. It is now time to double down on renewable fuels to create stable, high volume domestic demand for corn, soybeans and other agricultural products.
Renewable fuels already play a major role in supporting U.S. agriculture. Ethanol production typically consumes around 40 percent of the U.S. corn crop, while biodiesel and renewable diesel rely heavily on soybean oil. As sustainable aviation fuel production scales, demand for agricultural feedstocks is expected to grow dramatically. Federal energy projections show that U.S. sustainable aviation fuel production capacity will increase more than tenfold over the next few years if planned facilities come online, creating a new, durable market for American-grown biomass.
Renewable fuel solves a basic supply and demand problem. Without new trade agreements, U.S. agricultural exports face barriers in key markets from Asia to Europe. Renewable fuels offer a domestic alternative — one that is insulated from geopolitical shocks and driven by long-term energy and climate commitments.
Global agricultural trade has become increasingly volatile. Export restrictions, retaliatory tariffs, and shifting alliances have made it harder for American farmers to rely on foreign markets. Renewable fuels provide a counterweight: a large, stable, homegrown demand center that keeps value within the U.S. economy.
Sustainable aviation fuel is a particularly strategic opportunity. Airlines are under pressure to reduce lifecycle emissions, and this is one of the few near-term tools available. As carriers commit to long-term decarbonization targets, they will require massive volumes of sustainable aviation fuel — volumes that U.S. farmers are uniquely positioned to supply through corn-based alcohols, soybean oil and other feedstocks.
Importantly, at a time when the Trump administration is pursuing an affordability agenda, expanding renewable fuel production can help lower food prices. When farmers have stable demand, they plant more acres, invest in higher-efficiency equipment, and achieve greater economies of scale. Over time, this increases supply and reduces per-unit production costs. A more stable agricultural economy also reduces price volatility, which is a major driver of consumer food inflation.
Meanwhile, equipment is being manufactured across America to help farmers increase production capacity. Precision agriculture technologies and equipment designed to optimize biofuel feedstock production are improving soil health and increasing yields — all of which support the renewable fuels ecosystem.
Now is the time to unlock the benefits of renewable fuel to build an agricultural economy that benefits farmers, consumers and manufacturers alike.
How can the Trump administration help? Trump’s recent support for the nationwide year-round sale of E-15 — gasoline blended with 15 percent ethanol — is a promising start. If a bill is passed by Congress, it would unleash the consumption of up to 2 billion more bushels of corn. But more can be done.
For starters, the administration should send clear, long-term policy signals that encourage further investment in biodiesel, renewable diesel, ethanol, and SAF. By accelerating approval pathways for new sustainable aviation fuel and renewable diesel technologies, it ensures U.S. farmers can supply the feedstocks needed for rapid industry growth.
Secondly, the administration can strengthen domestic energy and agricultural coordination by aligning the Agriculture Department, Department of Energy and Department of Transportation programs to support renewable fuel infrastructure and feedstock development.
Finally, the administration must acknowledge the equipment required to ramp up production capacity and partner with the U.S. equipment industry to promote adoption of equipment that enhances renewable fuel production.
Prioritizing renewable fuels is more than an energy strategy — it is a blueprint for revitalizing American agriculture, strengthening rural economies, and easing the financial burden on consumers. In a world where geopolitical uncertainty is increasingly the norm, renewable fuels offer something increasingly rare: stability. And right now, stability is exactly what American farmers and families need.
