Congress is trying to ease the burden on U.S. farmers – but will new legislation come in time
It has been a very challenging time for most U.S. farmers, with federal nutrition programs being cut back, tariff wars hurting exports, and soaring input costs on items like fertilizer and diesel fuel.
Imports now account for a significant share of domestic supply, including roughly 60 percent of fresh fruit and 38 percent of fresh vegetables. Net farm income in 2026 is projected to remain flat at approximately $153.4 billion, which is roughly 24 percent below the record highs seen in 2022.
The Farm Bill
Increasing the domestic consumption of U.S.-grown agricultural products is a current priority for policymakers and industry leaders to counter declining net farm income and fierce global export competition.
In March, the House Agricultural Committee passed a draft titled the “Farm, Food, and National Security Act of 2026.” The bill has advanced to the full House floor for consideration. The Senate Agriculture Committee is working on its own version.
There are significant policy disagreements between the House and Senate, particularly regarding funding for the Supplemental Nutrition Assistance Program (SNAP) and climate-related conservation measures, largely due to disagreements over how to fund improvements to the farm safety net. Key sticking points include:
- Nutrition Programs – Disagreements over potential cuts or stricter work requirements for SNAP benefits.
- Pesticide Regulations – Proposed House provisions that would protect pesticide companies from legal claims and limit local safety laws.
- Conservation Funding – Debates over whether to prioritize climate-smart practices or shift funds to other commodity subsidies.
In March 2026, the Senate Committee on Agriculture, Nutrition, and Forestry held a dedicated hearing to address these issues.
Key Strategies for Growth
The following approaches were highlighted by experts and legislators as essential for boosting domestic demand:
- Improving oversight of “Buy American” provisions within the National School Lunch Program and military food sourcing to ensure taxpayer dollars prioritize U.S. farmers.
- Increasing year-round access to E15 (15 percent ethanol blend) and supporting Sustainable Aviation Fuel (SAF) to create major new domestic outlets for corn and soybean crops.
- Proposed measures like the “Grown in America Act” that would provide tax credits to businesses that source a high percentage of their agricultural inputs from U.S. growers.
- Reserving the USDA “Product of USA” label for meat, poultry, and eggs from animals born, raised, harvested, and processed in the U.S.
- Reinvesting in local food purchasing assistance programs and supporting farmers’ markets to help small and mid-sized farmers access nearby consumers.
- Encouraging the use of American-grown raw materials for non-food applications, such as the “Buying American Cotton Act” for domestic manufacturing.
Strategic Shift to Bio-Based Products
In 2026, the bio-based products sector is undergoing a strategic shift toward national security and domestic supply chain independence. The U.S. government and industry groups are prioritizing American-grown materials while aggressively excluding foreign competitors. In late December 2025 and early 2026, the USDA updated the “BioPreferred Program” to explicitly put American producers first.
New research and development for 2026 is focused on creating novel bio-based products from U.S. agricultural crops to provide farmers with innovative revenue streams. The proposed “Biomanufacturing and Jobs Act of 2025” and the “Ag BIO Act” seek to provide over $100 million in mandatory funding for biorefineries and bio-based manufacturing through 2030.
Growing Bio-Based Market Trends
Consumer demand for bio-based items is evolving beyond simple petroleum replacements.
Industry is increasingly adopting bio-polymers and mycelium-based materials for packaging and textiles. Packaging producers are accelerating the use of bio-based laminate materials, driven by a need for high-barrier performance that also meets sustainability goals.
Nationwide E15 Waiver
In March, the EPA issued a nationwide emergency fuel waiver to allow the sale of E15 throughout the upcoming summer driving season, starting May 1. Under the Clean Air Act, the initial waiver lasts for 20 days, but the EPA has indicated it is prepared to issue rolling extensions to cover the entire summer. The move aims to increase domestic fuel supply and provide relief at the pump – potentially saving consumers several cents per gallon.
While the emergency waiver allows nationwide sales, permanent year-round access varies by state. Nine states have secured a permanent path for year-round E15 sales, providing a massive new market for ethanol producers.
A bill is currently moving through Congress that would permanently extend the 1-psi Reid Vapor Pressure (RVP) waiver to E15 nationwide, eliminating the need for yearly emergency intervention. The EPA continues to authorize E15 for use in all conventional passenger vehicles with a model year of 2001 or newer. It is not approved for use in motorcycles, heavy-duty trucks, or small engines like lawnmowers.
Ed and Kelly Burke are respectively Chairman of the Board and Senior Marketing Manager at fuel distributor Dennis K. Burke Inc. They can be reached at 617-884-7800 or ed.burke@burkeoil.com and kelly.burke@burkeoil.com.
