Monday, August 17, 2020

Farmers: Ethanol Volumes Likely Will Not Be The Same, But EPA Is Scared To Talk Before The Election

Photo: Agriculture.com


Over the past few years, many blog posts (see below) have been written about the brunt that U.S. farmers have had to bear from the Trump administration.  The sadness or madness started when President Trump tried to negotiate a better trade deal with China.  Which, over the course of 3 years has appeared to be a Trade War.  Farmers have been the casualties along with the American consumer.



Now, the ethanol sector (of farming) is under attack.  The Trump administration has refused to release the projected volumes for ethanol farmers in the coming year.  Why?  Because the administration is facing re-election.  Which means, give bad news, lose votes.  Reporting by Politico Energy highlights the issue:


WAKE ME UP WHEN NOVEMBER ENDS: The Trump administration is expected to punt on tough ethanol decisions until after the November election to avoid triggering a backlash from either farmers or the petroleum sector, according to several people in the ethanol and oil industries who have been in contact with EPA and the White House. EPA faces a late-November deadline to decide the volume of biofuels the oil refining industry must blend into the nation's gasoline and diesel supply, but the agency has yet to even issue its proposal, which is itself months overdue, Pro's Eric Wolff reports this morning.


"It's a no-win proposition because you're going to alienate (one or) the other group," said Tom Kloza, analyst at the oil price service OPIS. "To the extent that they can, they'll probably stall or wait. And they can get away with it because it's such an uncertain environment in terms of what volumes are going to look like next year."//Oil refiners are pressing EPA to grant them biofuel exemptions dating back to 2012, a move they say could allow EPA to skirt a January court decision that sharply curtailed the agency's power to issue those waivers. At a stop in Kansas last week, EPA Administrator Andrew Wheeler told an audience that the decision on the 2021 blending levels and the waivers was "complicated" and he could not promise a decision.


Sources in communication with senior Trump administration officials say neither Wheeler nor the White House want to inflame tensions over the ethanol program. Granting the small refinery exemptions to gasoline makers would infuriate farmers who have so far been loyal supporters of President Donald Trump, but denying them would be a blow to refiners struggling to survive amid the collapse in fuel demand because of the coronavirus pandemic. Until the administration decides that issue, the release of the annual Renewable Volume Obligation remains in limbo.


With the exemptions up in the air and no sign of the 2021 volumes, ethanol producers are getting frustrated. "If someone asked me, 'Has President Trump kept his promise?;' I can't say yes," said Monte Shaw, head of the Iowa Renewable Fuels Association, an ethanol producers trade group.



The most reassuring news from above is that last quote.  The realization of the head of the Iowa Renewable Fuels Association that the Trump administration has NOT kept its promise.  One of the largest concerns riding into the election is that farmers will give President Trump a pass.  That need not be the case.


Unless each farmer wants to go under in their business. President Trump has no idea how to look out for your best interest.  What has he done for you lately?  Ask yourself that.


Each American should be asking themselves the same question farmers are.  Has President Trump kept his promise?  How good is your life today?  The view that I am seeing along with the shouts from neighbors is that of the frustration of the administration.  There is a complete lack of trust and let down emerging from the White House.  The time has come to change!


Related Blog Post:


Trump Changes NEPA Rules to Speed Up Industry Projects on Federal Lands


Pork Industry Takes Another Large Hit With the Coronavirus


Coronavirus Causes More Aid For Farmers and Tariffs Still Stand


First Fish Farm Needs EPA Approval


Trade Not Aid! President's Trump's Response: Aid Again!


Why Can't The USDA Regulate The Pork Industry?


Mitigating Pollution from Slaughter Houses -- Why Not Try If Technology Exists?


Farmers Statement to Congress Regarding the Current USMCA Trade Deal


To The House and Senate from Farmer's for Free Trade


























No comments:

Post a Comment