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on February 26, 2018

Ag, commodity groups send Trump letter supporting RFS

Six industry leaders ask president not to weaken the Renewable Fuel Standard

Six leaders from farm and commodity organizations have signed a letter addressed to President Donald Trump regarding their support for the Renewable Fuel Standard (RFS).

The RFS is an Environmental Protection Agency (EPA)-run program that requires transportation fuel sold in the United States to contain a minimum volume of renewable fuels. The RFS has boosted demand for corn and soybeans in the U.S., as well as the rural economy.

“For the past 10 years, the Renewable Fuels Standard (RFS) has been a strong engine driving the rural economy,” the letter states. “The RFS, which sets targets for blending ethanol and biodiesel into our nation’s fuel supply, created new markets for our farmers, created new jobs in rural America, gave consumers more fuel choices, and improved our nation’s air quality. By any measure, the RFS has been successful not only for agriculture, but for our nation. This growth has slowed, however, in the face of past government policies and oil industry opposition.

“But while our fellow farmers struggle with declining farm income and a poor agricultural economy, most oil refiners are experiencing a boom. Refiners are reporting surging profits and significant gains from recent tax reforms. The recent bankruptcy claims of an East Coast refiner are not reflective of the state of the refining industry, but rather the hallmark of poor business decisions and a willingness to put investor returns before refinery jobs. Despite the claims of adverse impacts from Renewable Identification Number (RIN) costs, last November, the Environmental Protection Agency concluded that RIN values are not causing economic harm to refiners. The failings of one company should not be used as an excuse for undermining a law that serves hundreds of ethanol and biodiesel plants, tens of thousands of renewable fuel plant workers, and millions of farmers who rely upon the strong market demand created by the RFS.”

The letter continues, as the group asks Trump not to weaken the RFS: “We appreciate your steadfast support for the RFS since the early days of your campaign. As you meet this week to discuss these issues, we ask that you not entertain proposals that would undermine the purpose and intent of the RFS. There are options to address refiners’ concerns that do not undercut the RFS. Any action that seeks to weaken the RFS for the benefit of a handful of refiners will, by extension, be borne on the backs of our farmers.”

The letter is signed by Kevin Skunes, president of the National Corn Growers Association; Zippy Duvall, president of the American Farm Bureau Federation; Gordon Stoner, president of the National Association of Wheat Growers; John Heisdorffer, president of the American Soybean Association; Roger Johnson, president of the National Farmers Union; and Don Bloss, chairman of the National Sorghum Producers.

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