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U.S. Agriculture, Biofuel Markets, and Trade: Challenges and Opportunities

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  • Rayan Wolf
  • Farzad Taheripour

Abstract

Using an enhanced Computable General Equilibrium (CGE) model (GTAP‐BIO), this study assesses how the expansion in demand for Electric Vehicles (EVs) and the reduction in exports of agricultural products induced by trade disputes negatively affect US agriculture. It then evaluates the extent to which producing Sustainable Aviation Fuels (SAFs) from corn and soybeans could mitigate these effects. Results show that EV expansion reduces gasoline demand, suppresses corn production, lowers farm incomes, and generates idled capacity, including increases in uncultivated cropland. Export tariffs further amplify these effects. Expansion in SAF produced from corn and soybean could partially limit these consequences.

Suggested Citation

  • Rayan Wolf & Farzad Taheripour, 2026. "U.S. Agriculture, Biofuel Markets, and Trade: Challenges and Opportunities," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 48(5), pages 1594-1608, December.
    • Handle: RePEc:wly:apecpp:v:48:y:2026:i:5:p:1594-1608
    DOI: 10.1002/aepp.70112
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