US Implements Increased Biofuel Quota Policy to Boost Domestic Demand

On March 27, the Trump administration announced biofuel blending standards, requiring refiners to blend a record amount of biofuels into conventional diesel and gasoline this year. The U.S. Environmental Protection Agency (EPA) stated that the new regulation is seen as key to boosting farmer incomes, who are currently facing the dual challenges of low crop prices and high input costs; moreover, against the backdrop of a new round of soaring gasoline prices, this move is also expected to help stabilize fuel costs at gas stations. The administration also announced other agricultural support measures, including exempting high-ethanol E15 gasoline from volatility requirements and a new loan guarantee program for farmers and food suppliers.