Following today’s meeting with President Trump, Senators and Cabinet officials (reported yesterday), the President has sent a signal to the Environmental Protection Agency to allow the year-round sales of E15. The idea of a price cap on Renewable Identification numbers (RINs) was also vetoed.
Both of these decisions are good news for corn farmers and the ethanol industry.
THANK YOU to the farmers that called President Trump, Secretary Perdue, and your personal Congressional Representatives to make your opinions known on these issues. Your voices do make a difference!
However, one idea to alleviate oil industry concerns about the price of RINs would allow ethanol exports to count toward an oil company’s Renewable Fuel Standard obligation. This plan could dramatically reduce domestic ethanol demand – but that shouldn’t be your only concern.
Would your trade partners in the international market understand why the lowest-priced ethanol in the world requires an export subsidy? Doubtful. Would retaliatory trade barriers from countries importing U.S. ethanol be next, significantly impacting corn farmers? Definitely.
Today’s White House meeting is barely over, and certainly, more information will be forthcoming this week. Stay tuned.