USDA Closes In On $1.5 Billion Ethanol Deal with Mexico

Secretary Brooke Rollins announced an initial bilateral agreement that could boost total U.S. ethanol exports by 32% as Mexico explores expanded fuel blending.

Secretary of Agriculture Brooke Rollins indicates an ethanol deal with Mexico is close to final. Rollins mentioned the deal during a recent stop at the ADM facility in Cedar Rapids, Iowa. USDA says the deal presents a market opportunity of $1.5 billion for ethanol, which could increase exports by 32%.

“On October 26, Secretary Rollins announced that the U.S. and Mexico have reached an initial deal to unlock the Mexican market to U.S. ethanol exports,” a USDA spokesperson tells Farm Journal. “The U.S. Department of Agriculture looks forward to collaborating with Mexico on taking the necessary steps to implement this deal in the months ahead.”

USDA reports Mexican officials are in Houston, Texas, this week for a technical site visit. The agency says the announcement follows discussions in August between Mexico and Luke Lindberg, then-Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs. Lindberg was joined by the U.S. Grains Council, the Renewable Fuels Association and Growth Energy for the meetings in Mexico City discussing the country’s ethanol expansion.

USDA says the deal builds on Secretary Rollins’ American Biofuels Trade Outlook, released during Growth Energy’s September Biofuels Summit. The outlook includes increasing ethanol blending for on-road vehicles in foreign countries, including prioritizing E10 adoption in Latin America and Southeast Asia. The plan also pursues reducing and removing restrictions placed on crop-based biofuels and expanding into untapped markets. Priorities include increasing technical engagement with Mexico, targeting emerging markets in Asia, expanding access in India and supporting an ethanol pilot program in Nigeria.

Mexico’s Consumption of U.S. Ethanol

The U.S. Grains Council reports Mexico ranks ninth among buyers of U.S. ethanol. The country bought over 82 million gallons of U.S. ethanol last marketing year. Mexico used about 11.8 billion gallons of motor gasoline in 2025, according to a conversion of U.S. Energy Information Administration data.

Mexico's Gasoline Data (EIA)
Mexico’s gasoline consumption data listed on the U.S. Energy Information Administration’s (EIA) website.
(EIA)

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