Corn Cheers, Soybeans Slam E15 Bill

Corn growers and the ethanol industry cleared a major milestone. 

Win turns to clash: The U.S. House of Representatives passed a bill that would allow for year-round sales of E15. The bill would allow voluntary sales—not a mandate—of gasoline containing up to 15% ethanol. 

Biofuel and farm groups applauded lawmakers for passing the bill. But not all ag groups are celebrating. 

Controversy emerged last week after the American Soybean Association was quoted by Agri-Pulse saying it “could not support the legislation in its current form.” 

What they are saying: The sticky point isn’t necessarily about allowing higher ethanol blends year-round. Instead, the disagreement is on revamping the process of granting small refinery exemptions (SREs) from biofuel-blending rules under the Renewable Fuel Standard (RFS).

A recently released study by the University of Missouri’s Food & Agricultural Policy Research Institute concluded the bill could have negative economic impacts for soybean growers. It could mean tradeoffs between corn and soybean demand, shifting short-term farm income. 

Meanwhile, the NCGA stressed the “bill is essential to the success of corn farmers and rural communities, particularly as our growers face their fourth year of net losses and struggle with high input costs.”

Still bumps in the road: While E15 cleared the House, it may meet more resistance down the road. Ninety GOP members and 113 Democrats rejected the bill in the House, alluding to possible difficulties in the Senate.