Ethanol Producers Await Relief from Pandemic-Driven Drop in Demand

USAgNet - Biofuels producers and Midwest lawmakers continue to wait for a lifeline amid the COVID-19 pandemic, DTN Progressive Farmer reports July 29.

While congressional leaders continue to debate a new round of COVID-19 stimulus that could include relief for ethanol producers this time around, President Donald Trump was promoting the oil industry July 29 during a fundraising stop in west Texas.

Besides that, the Environmental Protection Agency has exceeded the deadline by one month to release proposed 2021 renewable volume obligations in the Renewable Fuel Standard, a key market driver for biofuels.

The Senate version of pandemic relief would give the U.S. Department of Agriculture discretion to make payments totaling $20 billion to agriculture, including "agricultural processors."

"It isn't clear how or whether ethanol producers would benefit," said Renewable Fuels Association Chief Executive Officer Geoff Cooper.

Cooper said that the legislation must contain specific direction on how the money is to be allocated.

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