Biofuels: Powering America’s agricultural future

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American farmers are the most productive in the world. Today they produce more from less than any previous generation, employing cutting-edge technologies to maximize yields on existing cropland. But success today doesn’t guarantee prosperity tomorrow. A new study released by S&P Global Energy shows that new markets for biofuels represent a uniquely powerful tool to sustain investment in America’s capacity to feed and fuel the world.

The authors lay out a compelling challenge: over the next 25 years, global populations are expected to grow at a slowing rate. Demand for staple foods and traditional fuels is projected to stabilize or decline. Yet, at the same time, modern farm practices will make every acre of cropland more productive. Without new markets, supply will outpace demand, leaving farmers in the dust.

The good news? Biofuels offer a proven solution.

Over the past 20 years, biofuel demand has supported farm incomes, kept agricultural investment strong, and helped rural America prosper. Every gallon we produce also yields valuable co-products that feed livestock, which keeps meat and dairy affordable. The result is more food and fuel than ever before.

Moving forward, the S&P Global Energy study shows what is possible if farmers are given the opportunity to expand into new markets for on- and off-road transportation, from aviation to marine fuels.

In the U.S. alone, strong biofuel demand would drive adoption of yield-enhancing technologies including advanced seeds, precision agriculture and regenerative practices. S&P Global Energy projects that U.S. corn yields could grow at approximately 1.6 percent annually through 2050 — enabling nearly 50 percent more production without expanding acreage.

This expansion creates more than just farm income. Globally, biofuel production could triple, while food and feed supplies would increase by 45 percent compared to baseline scenarios. And the U.S. would be able to supply a growing share of the approximately 940-billion-gallon global liquid fuel market.

Consumers benefit too. Ethanol is typically cheaper than gasoline, which helps keep fuel costs down for families and businesses. As farming becomes more efficient, ethanol becomes an even better value. The same holds true for bio-based diesel, a key market for America’s soybean growers.

Around the world, stronger biofuel markets in developed countries can also help other regions strengthen food security. In Africa, farmers currently produce one-fifth of what American farmers produce from the same amount of land. With stronger, sustained demand signals, less developed countries can begin to invest in new technologies pioneered right here in the U.S.

The reverse is also true. Without reliable demand, farmers face increasing uncertainty. Uncertainty leads to less investment. Less investment means slower productivity growth. Slower productivity growth reduces incentives to maintain farmland and equipment. Cropland is taken out of production. Rural communities feel the effects. Young people leave for cities. Innovation slows.

That’s why, as members of the Congressional Biofuels Caucus, we have fought to expand biofuel markets for American growers, creating rural jobs and restoring American energy dominance. Just last month, the House approved year-round sales of E15, a lower-cost fuel option made with American ethanol. We also rallied bipartisan support for historic volumes under the Renewable Fuel Standard in 2026-2027, designed to generate over $10 billion for rural economies and create over 100,000 new jobs in the agricultural and manufacturing sectors. They will also reduce the nation’s dependence on foreign oil by roughly 300,000 barrels of oil per day over 2026 and 2027.

Maintaining this momentum is critical to America’s energy future, and — as the S&P Global Energy report illustrates — growth in the U.S. bioeconomy promises to usher in a new era of prosperity across the heartland.

The opportunity is real. The time to act is now. By supporting biofuels, we can strengthen U.S. agriculture’s capacity to feed and fuel the world using fewer resources.

Reps. Nikki Budzinski and Dusty Johnson are members of the Congressional Biofuels Caucus.

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American farmers

biofuels

Dusty Johnson

Ethanol

Nikki Budzinski

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