Roughly 40% of U.S. corn is used to produce ethanol.
The Trump administration announced Friday it plans to implement new rules that will increase demand for ethanol, reversing a decline caused by exemptions given to oil refineries.
Although the proposal by the Environmental Protection Agency and Department of Agriculture wouldn’t address the current loss of ethanol demand, it would ensure that beginning in 2020 the government would comply with a 15-billion-gallon standard already required under federal law and meet benchmarks for soybean-based biofuels. The EPA also said it would remove barriers to the sale of E15, a higher blend of ethanol that because of Trump’s support now can be sold year-round.
“I’m please by their willingness to abide by the law,” said Wolle, who farms near St. James, Minnesota. “It’s good news but they aren’t going out of their way to do anything for agriculture or the ethanol industry.” U.S. Sen. Chuck Grassley of Iowa, who during the summer said farmers had been “screwed” by the EPA, issued a statement Monday that praised the president and emphasized the important of ethanol to agriculture and the rural economy.
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