Farmers love biofuels because it adds to the baseline demand for crops, raising the price floor for corn (ethanol) and soybeans (bio-diesel). Like any commodity, sales price fluctuates but the input costs are fixed.
That's not really how refiner credits work, it's just the popular narrative pushed by anti-farming interests. There's a very wide array of groups that would like to see commercial agriculture end in the US, for reasons as simple as "why don't we just take all that land and make it a national park!" Vegans in particular hate US farming, as they see it as enabling the consumption of animals. Unfortunately one of the giant reasons there is so much climate change skepticism in the American Midwest is the same old groups that were attacking rural people as evil for decades changed their messaging from "animal cruelty" to climate change, and the reflexive reaction was to discount it. Had the message been delivered from less adversarial sources with a plan for involving those communities instead of attacking them you might have seen a broader embrace of climate-positive policy. But I digress.
The US has some of the lowest agricultural subsidies of any industrialized nation. Subsidy for agriculture is fundamentally necessary: crops are perishable, and their production varies wildly based on environmental conditions. If you don't have some mechanism for subsidy during times of overproduction then people go bankrupt and land is fallowed, and suddenly in times of underproduction (drought, pests, whatever) you don't have enough food to go around. And since crops can fail very suddenly, sometimes well into a growing season, these effects are very unpredictable. The worst case scenario is people starve, and that was fairly routine in most nations prior to about 100 years ago.
The way the US manages this is not via explicit subsidy (typically), which is what most countries do (Look at Europe for example, the tv show Clarkson's Farm is a goofy look at this but the last episode of the first season really hammers it home). The US initially tried to manage production via mechanisms that took land out of production, sort of calibrated to what the government thought the country needed. Think payments to make marginal land into wildlife habitat rather than plow it. That practice was deemphasized under President Regan, where the idea shifted to production-maximalism and the government just bought and used surpluses. The idea there was basically to drive small farmer under in favor of hyper-productive megafarms... you know, because efficiency is all that matters /sarcasm.
Biofuel mandates really became an outgrowth of that production maximalist approach to agriculture (as are things like government cheese production to deal with milk surpluses). Ethanol and Biodiesel are ways to eat surplus. The "mandates" are actually extremely flexible, which is why fuel at a gas pump in the US will often say "UP TO 10% Ethanol." Why the "Up To?" Because sometimes that gasoline has very little ethanol in it. What ends up happening is blending requirements are routinely waived by the government depending on the price of the crops in question. If prices are below the cost of production for farmers the government will use ethanol blending to raise the prices to nearer to break even. If prices are very high already, the blending requirements get waived. It's a shock absorber. Unrelated, but functionally animal agriculture works the same way... when grain gets expensive animals are fed less grain, slaughtered earlier, and fewer young animals are raised, which takes meat out of production but increases the supply of staple grains.
Biofuels may very well be the answer to things like aircraft de-carbonization. There are many environmental interests that hate the idea of that, and would rather just see air travel decline entirely. When you look into the arguments against using biofuels they’re extremely cherry-picked. Typically they’ll reference that fossil fuels are used to power agricultural equipment, which is true but also not something intrinsic (there’s no reason you couldn’t transition agriculture to battery-electric production eventually, probably with smaller autonomous equipment rather than giant human driven machines). They’ll reference fertilizer use, which again is not intrinsic to producing grains and could be supplanted with cover-crops and non-fossil derived fertilizer. And finally they’ll complain that fermentation produces CO2, which is true but perfectly manageable. It’s not like it creates carbon atomically, at worst it’s a closed net-zero carbon loop and at best it’s an active carbon sink (you capture the CO2 off-gassing during fermenting and inject it into the ground). Ironically there have been attempts to create large CO2 pipelines from ethanol refiners that would run to North Dakota to inject into old oil wells, but “environmentalists” have fought it tooth and nail. Environmentalism has many, often competing, factions and goals.
Ultimately for things like aircraft there is a certain energy density required. The same with heavy equipment, rockets, whatever. Chemical fuels have a very high energy density, and are an obvious solution. Growing those fuels isn’t an unreasonable way to manufacture them. I’d guess that ultimately biofuels would be produced primarily from things like switchgrass, with grain biofuel filling the same role it does now: a sink for excess grain production.