WASHINGTON, D.C. (RFD NEWS) — The House has narrowly approved a $95 billion reconciliation package that includes up to $12 billion in additional agricultural assistance, sending the legislation to the Senate, where its future remains uncertain.
The measure passed by just two votes and now awaits Senate consideration.
Senate Majority Leader John Thune said lawmakers are also working to reach an agreement on government funding before the end of the fiscal year. Thune told Agri-Pulse the reconciliation package could factor into those negotiations if necessary, as Senate leaders continue building support for a broader funding plan.
Analysts Urge Farmers to Watch Energy Markets
As Congress debates additional farm assistance, market analysts say producers should also keep a close eye on global energy markets and geopolitical developments.
Mike Zuzolo of Global Commodity Analytics said biodiesel demand and disruptions to key shipping routes could have significant implications for commodity prices and input costs.
“Watch the policy, and watch the biodiesel demand domestically because that’s going to play a greater role in terms of whether we can sustain these prices in soybeans or not,” Zuzolo said. “But it’s also watch these two major straits: the Strait of Hormuz, the Kerch Strait, the most intensive areas, arguably, for commodities in the whole world. Russia is the number one exporter of wheat and number two exporter of diesel.”
Zuzolo said that uncertainty prompted him to encourage clients to secure diesel supplies ahead of harvest.
“I just got done locking in diesel for fall needs with clients and subscribers last week,” he said. “I’d rather be covered on the downside than have to worry about how high prices might go, especially if I’m fighting higher fertilizer prices like I was earlier this year.”
E15 Legislation Remains Stalled in the Senate
Concerns over fuel costs are also renewing attention on legislation to allow year-round sales of E15.
The House has already approved a bill authorizing nationwide, year-round sales of the higher-ethanol fuel blend, but the measure remains pending in the Senate.
The Renewable Fuels Association says growing consumer support could help build momentum for the legislation.
President and CEO Geoff Cooper said rising gasoline prices and continued uncertainty surrounding oil supplies have increased public interest in lower-cost fuel options.
“We’ve been sharing these results with members of Congress, especially on the Senate side, to remind them that your constituents want year-round access to E15,” Cooper said. “They understand it’s a lower-cost fuel, and they understand it’s going to save them money at the pump.”
Cooper added that renewed tensions in the Middle East and concerns surrounding the Strait of Hormuz have pushed oil prices and gasoline prices higher, making E15 an increasingly attractive option for consumers.
Supporters say they will continue working with senators to find a path forward, to advance year-round E15 sales before the end of the congressional session.
