WASHINGTON, D.C. — The U.S. Department of Agriculture is targeting higher ethanol blending and fewer trade restrictions in markets from Mexico to Southeast Asia as it seeks to extend a record export run that sent 2.2 billion gallons of U.S. ethanol worth $4.7 billion overseas in 2025. USDA data separately put calendar-year exports at about 2.18 billion gallons, up 13% from 2024 and 52% from the previous five-year average.
The American Biofuels Trade Outlook lays out four priorities: increasing on-road ethanol blending, reducing restrictions on crop-based biofuels, reaching markets with untapped demand and expanding engagement with international organizations.
The strategy puts Latin America and Southeast Asia at the center of efforts to expand adoption of E10, gasoline containing 10% ethanol. USDA plans to address implementation issues in Vietnam and work with 20 countries that have adopted E10 policies to fully implement their blending requirements.
The department also plans to deepen coordination between its Foreign Agricultural Service and foreign governments to establish or increase ethanol blends. Those efforts are aimed at expanding overseas demand for a fuel primarily produced from U.S. corn.
International demand has become increasingly important to the ethanol industry. Exports represented 15% of total U.S. ethanol demand in 2025, with Canada, the Netherlands, India, the United Kingdom and Colombia accounting for 76% of exports, according to USDA.
USDA’s plan singles out Mexico for greater technical engagement aimed at increasing ethanol blending. In Asia, it identifies Indonesia, Japan and Vietnam as markets with potentially large long-term returns and calls for deeper engagement with India to reduce trade barriers and build demand.
The department also plans to use anticipated increases in market-development funding for new marketing efforts in Pakistan and an ethanol pilot program in Nigeria.
Another component targets foreign restrictions on crop-based biofuels. USDA said it will invest in research, outreach and technical work to expand international market opportunities while seeking to counter European Union influence over policies adopted by U.S. trading partners that restrict biofuels. The report characterizes some EU messaging as misinformation.
USDA also intends to work through the U.N. International Civil Aviation Organization and International Maritime Organization to support the inclusion and competitiveness of U.S. biofuels in international rules. The department specifically identifies Brazil as a competitor whose influence it wants to prevent from producing rules that exclude U.S. products.
“America’s farmers are competing and winning on the world stage and our homegrown biofuels are no exception,” Under Secretary for Trade and Foreign Agricultural Affairs Luke Lindberg said. He said USDA intends to increase ethanol blending internationally and pursue additional market access through trade agreements.
The outlook also calls for continued work with the biofuels industry and farmers while supporting legislation permitting year-round sales of E15, gasoline containing 15% ethanol.
The export push comes as ethanol provides a significant source of demand for U.S. corn. USDA’s Economic Research Service reported that fuel ethanol consumed 5.44 billion bushels, or 36%, of U.S. corn use during the 2024-25 marketing year.
More information about USDA’s biofuels strategy is available at www.usda.gov.
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