Ethanol
The May Farm Journal Ag Economists’ Monthly Monitor reveals growing concern over farm profitability, rising debt costs and long-term financial stress, with economists saying many operations may need significant restructuring to remain viable.
ASA says it fully supports year-round E15 ethanol but says social media backlash stems from confusion over SREs in House bill language as the measure heads to a tougher Senate fight.
The U.S. House approved legislation to allow year-round sales of E15 gasoline nationwide, aiming to lower fuel prices while facing pushback over potential refinery costs and the impact on the national debt.
Fresh analysis from FAPRI finds passage of year-round E15 would bring limited near-term gains to corn prices, while SRE changes would put pressure on farm income and negatively impact soybeans.
A first-ever focused vote on E15 has eyes on The Hill. Growth Energy CEO Emily Skor says, “There’s mounting pressure to get something done and take action.”
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.
EPA waiving fuel from U.S. volatility requirements to allow summer sales of E15 has become standard practice but at least this year it is coming early.
USDA Under Secretary Luke Lindberg points to strategic deals and surging dairy, ethanol and corn exports driving the U.S. toward an ag trade surplus