Could the farm bill push US’ ethanol market to new heights?

An ethanol plant in front of a corn field
Could year-round E15 help farmer economics and reduce consumer gas prices? (Getty Images)

Ag stakeholders are advocating for the passage of the farm bill, which will allow for the year-round sale of E15 blends, boosting domestic consumption at a time of record-high exports of the biofuel

With the return of Mitch McConnell to the Senate, the Senate Agriculture Committee passed by a 12-11 vote its second version of the farm bill on Sept. 16, which includes language allowing year-round sales of fuel with a 15% ethanol blend (i.e., E15), as fresh USDA data illustrated the health of the U.S. ethanol market, including a year of record high exports in 2025.

Farming and industry groups — from the American Farm Bureau Federation to the Renewable Fuels Association (RFA) — have strongly advocated for year-round E15, which supporters say would provide farmers with a reliable market for corn and help lower fuel costs for consumers.

Regular unleaded gasoline prices averaged $4.3672 on Sept. 16, compared to $3.1862 a year ago and a high of $5.0165 on June 11, 2022, according to AAA data.

The farm bill now moves to the full Senate where it faces an uncertain future, with the current 2018 Farm Bill extension set to expire on Sept. 30, 2026, roughly a month before the U.S. midterm election. Previously, the Environmental Protection Agency allowed for E15 sales in the summer through emergency waivers.

“There is broad bipartisan support for making lower-cost E15 available to consumers all year long — especially at a time when pump prices are on the rise and fuel supplies are tightening. Now, we urge the full Senate to pass year-round E15 legislation as quickly as possible, reconcile the language with the House, and get a viable solution to President Trump’s desk for his signature,” said RFA President and CEO, Geoff Cooper, in a statement.

USDA biofuels roadmap lacks policy specifics

The Senate Agriculture Committee-passed Farm Bill comes a day after the USDA released an international agricultural trade report showing that the U.S. exported 2.2 billion gallons of ethanol worth $4.7 billion in 2025, surpassing the previous record for export in 2024.

Canada was the number one destination for U.S. ethanol with 700 million gallons exported to the country in 2025, followed by the European Union and United Kingdom and India with 280 million and 190 million gallons, respectively.

The USDA also released the American Biofuels Trade Outlook, a roadmap designed to further grow America’s biofuel industry by increasing ethanol blending, reducing and removing restrictions, reaching untapped markets, and boosting international opportunities.

The biofuels roadmap listed 11 broad actions across these four policy initiatives, including tapping into Latin America and Southeast Asia demand for E10, investments in international market opportunities, and more.

However, the roadmap lacked concrete policy proposals, a timeline, and how the agency would work to reduce trade barriers in other countries.

“President Trump and the USDA are focused on increasing ethanol blending around the world and making sure U.S. farmers win with every new trade deal. This milestone proves our strategy has been working, and the release of the American Biofuels Trade Outlook will make sure our success continues,” said U.S. Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs, Luke Lindberg, in a press release.