Help On the Way For Ethanol Plants?
The Congressional Biofuels Caucus sent a letter to the U.S. House and Senate leadership requesting additional resources for the U.S. biofuels sector. Co-chairs of the Congressional Biofuels Caucus are Representatives Collin Peterson (D-MN) Roger Marshall (R-KS) Dave Loebsack (D-IA) and Rodney Davis (R-IL.) The letter specifically is requesting financial assistance for the U.S. biofuels sector be included in the next coronavirus aid legislation. The letter was signed by 31 other members of congress!
Congressman Peterson authored language that would provide a per-gallon payment on biofuels producers for fuel produced during the COVID-19 emergency. This was included in the House Heroes Act. When you say biofuels I always thing of ethanol, but the payments would also include payments for biodiesel and other biofuels.
With the shutdown and shelter in place order the demand for gasoline and ethanol dropped overnight by about 50 percent! No one could anticipate this occurring and it forced many ethanol and biodiesel plants to scale back production and many even shutdown for a while. The ethanol industry grinds over 5 billion bushel of corn every year so it had a huge impact on corn prices and corn farmers.