American farmers rank as the most productive globally. This productivity results from using advanced technologies to maximize yields on existing lands. Yet, current success doesn’t ensure future prosperity. A recent study by S&P Global Energy highlights the role of biofuels in keeping U.S. agriculture robust.
The Biofuels Market Opportunity
The global population is expected to grow at a slower rate over the next 25 years. This situation leads to stable or declining demand for staple foods and traditional fuels. Modern farming has made lands more productive, which could lead to supply exceeding demand in absence of new markets.
Biofuels present a solution. Over the last two decades, demand for biofuels has supported farm incomes and strengthened rural America. Biofuel production yields valuable co-products for livestock feed, helping keep food costs down.
Future Projections
The S&P Global Energy study suggests potential expansion of biofuel markets in transportation, including aviation and marine fuels. In the U.S., strong biofuel demand can promote adoption of yield-enhancing technologies like advanced seeds and precision agriculture. S&P Global Energy forecasts a 1.6 percent annual growth rate in U.S. corn yields until 2050, allowing almost 50 percent increased production without expanding land use.
Biofuel production could triple globally, and food and feed supplies may rise by 45 percent compared to baseline scenarios. The U.S. would contribute significantly to the 940-billion-gallon global liquid fuel market. Consumers benefit from biofuels being cheaper than gasoline, helping reduce fuel costs.
International Impact
Developed biofuel markets can strengthen food security worldwide. In Africa, farmers produce only a fifth of what U.S. farmers achieve with similar land, highlighting potential growth with new technology investments. On the contrary, declining demand risks creating uncertainty, reducing investments, and slowing productivity growth.
Policy and Support
To counter these risks, members of the Congressional Biofuels Caucus are expanding biofuel markets. Recent legislative victories include the House approval of E15 sales and bipartisan backing for the Renewable Fuel Standard 2026-2027, promising significant economic and employment boosts while diminishing foreign oil dependence.
These efforts, as supported by the S&P Global Energy report, are vital for America’s energy future. Supporting biofuels can enhance U.S. agriculture’s ability to feed and fuel the world efficiently. The time to act is now.
Reps. Nikki Budzinski and Dusty Johnson are active members of the Congressional Biofuels Caucus.