Biodiesel and bioethanol markets are crucial to meeting future energy needs according to the NFU.
The news follows a series of meetings between biofuel professionals, producers and the Secretary of State for Transport Norman Baker in a bid to get a 'solid commitment' to biofuel production in the UK.
Currently, the UK imports 80 per cent of the high protein animal feed used in livestock, pig and poultry production each year.
The biofuel industry can become one of the most important markets for British agriculture.
"Ensus (the bioethanol produer) and Vivergo will provide an important domestic market for UK feed wheat, allowing farmers to hedge their sales and reduce risk of being exposed to highly volatile commodity markets" said NFU combinable crops board member Brett Askew.
"This goes hand-in-hand with the biodiesel industry, which, already worth an estimated £600 million at the farm gate, has seen an increase in production of oil seed rape yields of around 25 per cent over the last 11 years, and is a growing market."
Askew said the two markets must co-exist in order to drive improvements in yields, the environment and on farm efficiencies, and are vital for a sustainable, thriving local market for both wheat and animal feed.
"The future of the two industries are linked together in a way that means government must take them seriously, and that is the point we made to the Secretary of State for Transport when we met with him. EU biofuels drive up sustainability standards around the world as any feedstock used in EU biofuel production must be certified sustainable."
"It has the potential for us to become more self-sufficient in high protein animal feed and import less from outside the UK, while providing an important floor in the market for our arable farmers."
