Heartland Biofuel Makers Are Stuck in a Slump Awaiting US Policy

The White House is gearing up to finally announce its new rules on biofuel blending, critical support for the industry that’s underpinned American farming over the past two decades. But for some producers of diesel made from soybeans, the move won’t be enough to rescue them from a months-long downturn that’s led to plant closings and layoffs.

In Iowa, Western Dubuque Biodiesel LLC currently only has sales booked through August instead of the typical 21 months in advance. Houston-based Renewable Biofuels Inc., owner of the country’s biggest plant making the soy-heavy fuel, is running at less than 30% capacity ...