An Agri-Pulse report says it appears that the Trump administration will not be putting a cap on the price of biofuel credits, known as Renewable Identification Numbers.
Ag Secretary Sonny Perdue says the administration will more likely try to bring down the cost of RINs through a vapor pressure waiver that will increase demand for E-15. That’s the outcome favored by the ethanol industry. Perdue described the possible scenario at the National Press Club in Washington, D.C. Perdue says, “We will not see RIN prices capped, but market prices, affecting the RVP waiver, that allows E-15 to be sold year round, which we believe will increase RIN availability and drive down the prices.”
The report says it’s important to remember that the uncertainty created by President Trump’s discussions on biofuel policy have already knocked down RIN prices considerably. It’s interesting to note that since the discussions began in October, when RIN prices were at 98 cents, they’ve now dropped to 38 cents as of last week. “The conversation has already been helpful in that area of driving RIN prices down,” Perdue adds.
LINCOLN – Governor Pete Ricketts sent a letter to President Donald J. Trump on Thursday thanking him for his support of the Renewable Fuel Standard (RFS). The letter also encourages President Trump to reject any proposal which would weaken the RFS, that has been pivotal to growing Nebraska agriculture.
“[E]conomic conditions today ‘are testing the resilience of the American farmer,’” reads the letter. “These challenges would only be exacerbated by demand-destroying alterations to the RFS – a policy which has been a lifeline for farmers, driving job growth and attracting billions of dollars of investment to rural areas where opportunities are needed most.”
Governor Ricketts has previously testified in support of the RFS in front of the EPA, and he has served as chairman of the Governors’ Biofuels Coalition.
Click here to read the full letter to President Trump.
WASHINGTON (March 9, 2018) – The National Corn Growers Association President Kevin Skunes told US Secretary of Agriculture Sonny Perdue this morning that proposed changes to the Renewable Fuel Standard would trigger significant losses in farm income and in rural jobs. Skunes asked the Secretary to work with President Trump to ensure the President understands the economic challenges farmers are facing today.
“Corn farmers have fought hard the past ten years, within Congress, with the last Administration, and in the Courts to protect the opportunity for renewable fuels to continue to grow as an option for consumers,” said Skunes. “Today, the President is considering a proposal from the oil industry that could cut farm income almost $4 billion dollars per year for the next two years. It is a deal that American farmers cannot afford. My message to the Secretary today was to ask the President not to cap future growth and opportunity in rural America by implementing a bad policy that would only serve to bailout a small handful of oil refiners.”
NCGA is opposed to an oil industry proposal that would cap the price of Renewable Identification Numbers (RINs). According to a study released this week by Iowa State University, a RIN cap would reduce ethanol demand by more than 750 million gallons and cost corn farmers as much as 25-cents/bushel.
“We’ve made our case to the Secretary and the President that there are options that can provide a win-win to farmers, ethanol, and oil—namely, fixing existing Reid Vapor Pressure (RVP) regulations to allow year-round use of fuel blends above 10 percent ethanol. Unfortunately, the oil industry continues to insist those changes are not enough. Three years ago, NCGA took the Obama Administration to court over decisions that violated the Renewable Fuel Standard. We are hopeful that the President is willing to consider an RVP fix as the best solution, but we will continue to oppose any deal that includes a RIN cap or waiver credits.
“We understand the President is committed to protecting jobs—so are we. We need the President to understand that this commitment needs to extend to rural America—to our farms, biofuels plants, and the manufacturing and processing jobs that depend upon American agriculture.”