Trump's Biofuel Waivers Risk Corn Demand Amid Gas Price Pressures

The Trump administration is set to expand biofuel exemptions for U.S. oil refiners, sparking concerns over reduced demand for corn and other crops used in renewable fuels.

According to two sources familiar with the matter, the Environmental Protection Agency (EPA) will grant waivers covering more than 1.8 billion renewable fuel credits, roughly double the initial volume contemplated for the year.

The exemptions are designed for small refineries arguing compliance with the Renewable Fuel Standard would create disproportionate economic hardship.

Agricultural interests warn that widespread waivers effectively remove renewable fuel demand from the market and weaken one of the most important domestic outlets for U.S. crops, particularly corn.