Fast-Tracked Farm Bill Sidelines E15 as USDA Targets Global Ethanol Expansion

The American Coalition for Ethanol reacts as the Farm Bill heads to a full House vote — while ethanol expansion, including year-round E15, is left out — as well as the USDA’s pursuit of global markets for ethanol.

SELECTS_FARMHER_ 20_03_30_USA_ALL_VARIOUS_0124.jpg

FarmHER, Inc.

NASHVILLE, TENN (RFD NEWS) — The House Agriculture Committee’s final draft of the Farm Bill is now heading to the full House for a vote. House Agriculture Committee Chairman GT Thompson says that while this process doesn’t happen overnight, lawmakers are still on track to pass it before the current Congress adjourns.

“And I think there’s an urgency. This needs to be done as soon as possible,” Thompson said. “You know, this addresses many of the issues that our farmers and ranchers are facing. Still, inflation is down, but the past couple of years of inflation have really hurt our farmers. There have been market disruptions, input shortages, and workforce challenges. There’s just a lot riding on this. That’s why this isn’t a bill we can afford to drag out to the end of the year; we need to get it done as soon as possible.”

The chairman says Senator John Bozeman is looking forward to receiving the bill in the Senate.

Congressman Jeff Hurd of Colorado also joined this week’s Champions of Rural America to explain the next steps to get the Farm Bill to the President’s desk and what the updated policies could mean for America’s farmers and ranchers.

One major issue left out of the House’s Farm Bill draft is ethanol expansion — specifically, the federal approval of year-round E15 sales — a perplexing development to both the biofuels and corn industries. However, U.S. Department of Agriculture (USDA) Deputy Secretary Stephen Vaden assures that he is exploring new and expanding global markets for American ethanol.

“If the right policies are put in place, American farmers could be well-positioned to fuel the world. I had meetings with the trade minister from Vietnam. At the top of his list was securing access to American biofuels because Vietnam is adopting E10 this summer,” Vaden said. “They want the United States to be the provider of that ethanol, and as they develop their infrastructure further and build plants that can produce ethanol in Vietnam, they want American corn to be the source material feeding those plants.”

Vaden also notes progress in Japan, which wants to buy synthetic aviation fuel from the U.S., an idea he says the USDA and other federal agencies are working to make a reality. He also mentions recent discussions with Germany’s agriculture minister.

“And our shared desire is that the German government continues to allow American soy and American biodiesel to meet Germany’s biofuel needs.”

The biofuel industry is applauding the department’s work. Growth Energy says many of the trade frameworks have strong upside for U.S. ethanol. The deal with the U.K. gave the U.S. 50 percent more access to that market.

Brian Jennings with the American Coalition for Ethanol joined us on Friday’s Market Day Report to share his perspective on the proposal and key policy issues impacting the renewable fuels sector.

In his interview with RFD NEWS, Jennings discussed the ongoing debate over year-round sales of E15 and the lack of E15 language in the House proposal. Glenn “GT” Thompson has said he believes the time is right for year-round sales but noted that the issue falls under the jurisdiction of the House Energy and Commerce Committee. He also addressed continued delays surrounding a proposal from the House Rural Domestic Energy Council and recent calls from Donald Trump urging Congress to send legislation authorizing year-round E15 sales to his desk.

The conversation also turned to the Renewable Fuel Standard as the Environmental Protection Agency submitted its long-awaited rule establishing new Renewable Volume Obligations to the White House for review. Jennings explained what the proposal could mean for agriculture and American energy independence, as well as the potential long-term benefits of expanding domestic markets for U.S. feedstocks.

Finally, Jennings previewed priorities ahead of the organization’s upcoming fly-in in Washington, D.C., where ethanol advocates will meet with lawmakers to discuss policy priorities for the industry.

Related Stories
The changing political climate in America is leading to a drop in migrant crossings near the U.S.-Mexico border, where ranchers like Dr. Mike Vickers say they witnessed horrors from death to child trafficking.
Strong blending demand continues to support ethanol use even as production and exports fluctuate.
AFBF Economist Danny Munch shares a closer look at the dairy market and the forces impacting producers today.
Eliza Petry joins the RFD News team with a strong connection to agriculture and a commitment to covering the people and issues that matter most to rural America.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

USDA Rural Development Director for Kentucky, Travis Burton, joined us to discuss the Princeton facility (formerly Porter Road Meats), now backed by the USDA, and its role in expanding domestic meat processing capacity.
Farm CPA Paul Neiffer joined us to break down the recent Fifth Circuit Court decision overturning a prior Tax Court decision on self-employment tax for limited partners, the ruling’s impact on farmers, and potential next steps in Congress.
Americans for Prosperity Arkansas Director Ryan Norris talks energy infrastructure, regulatory reform, and the role of critical minerals in supporting rural America.
Pennsylvania Farm Show scholarship recipient Elizabeth Dice discusses her award, her background in farming, and her path forward in the agriculture industry.
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain challenges facing agriculture as snow, sleet and ice threaten most of the Eastern U.S.
Congressman Adrian Smith of Nebraska joined us with the latest on efforts to secure year-round E15 sales.