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.
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.
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.
During his trip to Clive, Iowa, Trump reaffirms support for year-round E15, backing corn growers and ethanol, while announcing John Deere’s expansion of two new domestic production and distribution facilities.
USDA Undersecretary Luke Lindberg says the big takeaway is establishing a level playing field for U.S. producers and building opportunities from there.
Record corn exports are tightening stocks and lifting prices, but long-term strength depends on expanding domestic demand. Could year-round E15 overcome legislative hurdles in Washington and change the market trajectory?