Biofuels
EPA’s Set 2 RFS rule drives a surge in biofuel demand while also boosting feedstock markets. Matt Upmeyer with Montana Renewables explains why it could spark major gains for U.S. agriculture.
The RFS Set 2 rule is projected to increase net farm income by $4 billion and create a $31 billion market for corn and soybean oil while supporting 100,000 new rural jobs.
President Trump said, while speaking to reporters at a cabinet meeting on Thursday, U.S. farmers had been mistreated by some countries.
The nation’s farm groups are pushing for increased demand through biofuels and trade.
At Commodity Classic, analysts say a slower rollout of EPA’s pending RVO decision, or even delayed clarity, could leave spring planting decisions hanging in the balance.
The proposed rule sets up farmers to participate in the opportunity created by these biofuel producer tax credits, but questions remain.
Monte Shaw with the Iowa Renewable Fuels Association says the president’s direction to Congress could be the game changer to pass E15 legislation after a decade-long fight.
Jamie Gieseke with Paradigm Futures says soybeans were also getting a push from South American weather, with wheat adding risk premium on U.S. weather concerns.
Preceding President Donald Trump’s visit to a Clive, Iowa, farm, several groups sent a letter asking him to support biofuels policy that would provide certainty for corn and soybean farmers.