The biofuels industry has been suffering during this pandemic. People are not driving as much, so the price of gasoline tanked. That means the profits for ethanol were non-existent. Several plants had to either severely restrict production or shut down completely. This affected the economy of Iowa as a whole, but also the economies of the rural towns where these plants are located. Yesterday, Senator Chuck Grassley helped introduce a Biofuels Relief Bill in Congress.
During a call with Ag media, Senator Grassley talked about the hardships facing Iowa biofuels plants, as well as plants around the country. The drop in demand for gasoline meant a drop in demand for ethanol, and that meant a drop in demand for corn and soybeans in Iowa and across the country.
To help alleviate the situation Senator Chuck Grassley (R-IA) joined with Senator Amy Klobuchar (D-MN) introduced legislation that would require the United States Department of Agriculture (USDA) to reimburse biofuels plants for their feedstock purchases from January 1st– March 31st of 2020. This money would be paid out from the Commodity Credit Corporation (CCC).
Grassley said he tried to get similar language added as an amendment to the CARES Act which went through Congress a few weeks ago. However, when funding for the strategic oil reserve and the oil industry were not included, Grassley?s amendment fell to the wayside as well. Grassley says any help for the oil industry and the biofuels industry should be equitable. With purchases ordered for the strategic oil reserve, the time for helping the biofuels industry was now.
Grassley says it was a natural fit to work with Klobuchar on this bipartisan effort. He says that the Senior Minnesota Senator shares his outlook on biofuels, agriculture, and other areas.
Grassley says this bill ensures biofuels producers will be able to survive this downturn and bring production back online.
Response from the biofuels sector has been as expected. All of the advocates for the industry are thanking the Senators for putting the bill forward to save the injured industry.
