North American biofuels are wrestling with uncertainty due to tariff talks

An energy expert tells Reuters he expects the North American biofuels industry to contract if the uncertainty of tariffs continues to drag on.

Paul Niznik is the Director of Energy at Capstone LLC, he says that while he expects the industry to contract, it will not disappear entirely. He says that tariff unknowns have left little room for prices to catch up, but tariffs are not the industry’s only concerns.

A lack of 45Z tax credit guidance continues to impact the industry.

Brazil’s ethanol industry also faces some tough choices as tariffs loom.

To avoid reciprocal duties from teh U.S., Brazil would have to lower its 18% duty on American ethanol, and while ithis would allow Brazil to keep the U.S. as a key export market, opening itself up to U.S. ethanol would hurt its local industry.

Brazil shipped nearly 300 million liters of ethanol to the U.S. last year.

Related Stories
RFD-TV farm legal and taxation expert, Roger McOwen, joins us with his perspective on what farmers can expect from the delayed aid package.
U.S. Senator Joni Ernst (R-IA) joined us on Wednesday’s Market Day Report to share why Ames is uniquely positioned to support expanded USDA operations.
Iowa land values dropped 3% year-over-year. Sen. Chuck Grassley said this discomforting pattern is a harbinger of crisis for farmers, as seen in the 1980s.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.
Treasury Secretary Scott Bessent last week said an announcement would be made on Tuesday. However, that self-imposed deadline has now passed.
Expect firm demand for dependable HRS and SW, steady movement in HRW, more sorting on SRW, and selective bids on durum until full milling results are released.