Today’s crop report from the U.S. Department of Agriculture confirmed that farmers are expected to harvest a record corn crop of 16.8 billion bushels (an increase over August's estimate) and prices are projected to fall to six-year lows. The supply of corn following this year’s harvest is expected to significantly overwhelm demand, leaving 2.1 billion bushels of surplus. This report again underscores the urgent need to quickly open and expand markets for corn, including removing unnecessary barriers that constrain market opportunities for ethanol, the Renewable Fuels Association said.
“The severe financial distress facing America’s farmers today is directly linked to the outdated and irrational policy barriers that are blocking larger volumes of ethanol from entering the marketplace,” said RFA President and CEO Geoff Cooper. “Unless Congress and the Trump administration take immediate action to open the market to larger ethanol volumes, farmers could be headed for the worst economic crisis since the early 1980s. The hard work and incredible productivity of our nation’s farmers is being stymied by antiquated policies and regulations—like the summertime prohibition on E15, outdated pump labeling requirements, and confusing equipment compatibility guidelines. These red-tape barriers are stifling demand and stunting growth in the ag economy, putting family farmers and small businesses across rural America at risk.”
Cooper said the best option available to Congress to help corn farmers right now is to immediately pass the Nationwide Fuel Retailer and Consumer Choice Act, which would allow E15 to be sold year-round, nationwide, without the need for ad hoc emergency waivers. Passing the bill would give retailers nationwide the confidence and stability they need to begin offering E15 to their customers. Likewise, he noted, the Ethanol for America Act would streamline regulatory requirements related to E15 pump labeling and equipment compatibility. Both of these bills have strong bipartisan support.
