Why does S&P Global Energy say biofuels are key to preventing a sharp drop in farmland use?

According to the S&P Global Energy study, expanding biofuel demand — particularly for corn-based ethanol — is a 'powerful catalyst' to restore farm profitability and prevent reduced cropland, because climbing crop yields are creating persistent surpluses while demand stagnates; without new markets like biofuels, sustained surpluses would depress prices, erode farm incomes, weaken rural economies, and discourage long-term investment and innovation.

What role has ethanol played in driving U.S. corn demand since 2000, and why is E15 expansion seen as critical now?

The study states that 'about 83% of the net increase in corn demand since 2000 has been attributed to ethanol expansion'; currently, efforts to authorize permanent, year-round, nationwide sales of higher-ethanol E15 gasoline are seen as the 'easiest way' to fill the gap left by the U.S.'s March-finalized aggressive biofuel blending mandates — which largely left conventional corn ethanol volumes unchanged and fall short of required levels.

Biofuels Are Key to Preventing Sharp Drop in Farmland, S&P Says

Jun 16, 2026

S&P Global Energy reports expanding biofuel demand is vital to maintain farm profitability amid crop surpluses. The US House passed legislation to expand E15 sales, though it still requires Senate approval and faces industry opposition.

bloomberg

2026-06-16

Biofuels Are Key to Preventing Sharp Drop in Farmland, S&P Says

Biofuels Are Key to Preventing Sharp Drop in Farmland, S&P Says

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