How does the latest Renewable Volume Obligation (RVO) affect Love's and Ag? 

After years of over-capacity due to renewable diesel plant expansions, we have finally received strong RVOs for 2026 and 2027 to incent better industry margins and production figures. Based on our latest estimates, Love's will return to strong biodiesel and renewable diesel blending across the country. The biggest jump will be in biodiesel, where we expect +160% volume in 2027 when compared to 2025 blending, and we will be looking for new expansion opportunities.  

Biodiesel blending is our bread and butter – its nationwide, largely sourced from soybean oil, and it stays closer to the production point. Renewable diesel will continue to be a strong product for us, but it will be more regionally isolated to Low Carbon Fuel Standard states. The reason we are such strong supporters of biodiesel and renewable diesel is because these products help us lower our cost to consumers. Our ultimate goal is to drive more volume through our stations at competitive prices, and that is best served through a robust Renewable Fuel Standard. 

In short, the 2026/2027 RVOs are the single greatest demand signal for domestic biodiesel and renewable production, and the associated soybean oil demand that comes with it. More supply of biofuels helps lower our prices across the nation, and that is a true win-win. Protecting these RVOs is of major importance.  

How has the transition from 40A (Blender's Tax Credit) to 45z impacted Love's and the market? 

This is an interesting topic – 40A was a simpler, larger credit than 45z. It allowed for imported fuels and feedstocks, and Love's has historically been a strong supporter of this policy. More supply helps us lower retail costs, as described above. As we shifted to 45z, the lack of guidance for farmers and retailers created significant confusion, but this has been improved in 2026. And while all that occurred, the renewable fuels market suffered – but, the main driver was actually overcapacity and poor RVOs. We continue to advocate for 40A, but not at the expense of 45z. The point to make clear is simply that a strong RVO fixes a lot of those issues, regardless of which credit is better in practice. Love's is always open to improving 45z in a way that benefits all parties involved, and we're happy to work on that process with farmers.  

Illinois Biodiesel Sales Tax Exemption 

The Illinois biodiesel blend incentive spearheaded by the Illinois Soybean Growers is a hugely successful and impactful program for the state and retailers. Even in 2025 as biodiesel volumes dropped across the country, Illinois remained a hub for blending because of the state incentive (volumes didn't fall at all). In fact, all our stations are achieving the tax abatement incentive, year-round! Demand signals that improve fuel economics based upon blend usage are very effective, as it directly shifts our business to focus on bringing biofuels into the state. Our competitors do it, the fleets we sell to start to see the benefits, and we naturally move more biodiesel. Partnerships like this at the state level are great examples of the connection points between Ag and retailer interests. This incentive helped insulate Illinois farmers from basis shocks that were felt in the Dakotas. When we work together, we can achieve great progress.  

Heartwell Renewables – Love's Brings 640 Million Pounds of New Demand to Market in 2027 

Love's is so committed to biofuels that we are building a greenfield renewable diesel production facility in Hastings, NE. 80 million gallons per year, or 640 million pounds of feedstock demand; starting up in Q4 2026. The thesis for this facility is as follows – Love's has a long-term view to support biofuels, we have significant internal fuel demand, and we want to source domestic feedstocks near their origin at the most efficient cost possible. This plant can source all feedstocks, and we expect domestic soybean oil, beef tallow, and distillers corn oil to be staples of the inbound supply. This is truly new demand for Ag in the Midwest.  

Final Thoughts 

Ag and retailers can be extremely effective partners to affect policy and build strong biofuels coalitions. We may not agree on 100% of issues 100% of the time, but we should always leave the communication streams open and focus on our shared interests. The 2026/2027 RVOs and Illinois state incentive are great examples, and we thank Illinois Soy for practicing these principles and helping us all move more American Ag products through domestic, over the road trucking.  

If we can highlight anything for this group of stakeholders to focus upon, we would list the following: 

1. Domestic RVOs are the single most effective demand signal for biofuels and soy in the US 

1. Over the road trucking will always be a friend to Ag and soy, and we should protect these core markets 

1. Federal tax policy will continue to evolve and be a talking point, and we would encourage Ag to stay engaged with our retailer organizations to discuss these topics 

Heartwell Renewables (March 2026)