EPA rollback of endangerment finding could reshape farm equipment rules and nitrogen markets

The U.S. Environmental Protection Agency’s move to unwind the Obama-era endangerment finding for greenhouse gases could mark one of the largest deregulatory actions in U.S. history, with significant consequences for agriculture and the biofuels sector. If the agency no longer classifies greenhouse gases as a threat to public health and welfare, federal vehicle emissions standards — including for farm equipment — would likely be relaxed, potentially removing requirements for diesel exhaust fluid (DEF) in tractors, combines, and semitrucks.

Some farmers say eliminating DEF would simplify operations and reduce costs. However, equipment manufacturers caution that any shift would require substantial engineering changes and regulatory approvals. Fendt, part of AGCO, said it has experience producing engines for markets with and without DEF requirements, but has not made any decisions to alter North American products. Retrofitting newer machines to remove DEF systems would involve hardware and software modifications, emissions revalidation, and fresh regulatory clearance, underscoring the complexity of any transition.

Analysts say a rollback could also affect nitrogen fertilizer markets. DEF is produced from urea, a key nitrogen fertilizer product. According to Josh Linville, vice president of fertilizer at StoneX, reduced DEF demand could redirect more nitrogen supply to agricultural use, potentially easing domestic price pressures. While global nitrogen markets would remain volatile, additional supply retained in the U.S. could moderate seasonal premiums during peak spring application.

Sources: AgWeb