Increased Biofuel Production, Year-Round Ethanol Could Bolster Farm Economy
Faith Parum, Ph.D.
Economist
Chad Smith
Associate News Service Editor, NAFB
Year-round E15 would be a tremendous boost for rural America. Chad Smith has more on the opportunity.
Smith: At a time when the farm economy is facing a downward turn, farmers and ranchers are looking for expanded market opportunities. Faith Parum, an economist with the American Farm Bureau Federation, said increased biofuel production could be one avenue to increase farm revenue and boost the entire rural economy.
Parum: Biofuels drive steady demand for corn and soybeans. They create jobs at ethanol and biodiesel plants. They also attract a lot of local investment and keep energy dollars circulating in rural communities.
Smith: One simple solution for increasing biofuel demand would be to allow for year-round E15 in American gas pumps. She said demand for homegrown corn would boom at the same time as a big crop settles in to bins across the country.
Parum: Yeah, year-round E15 would add billions of bushels of new corn demand. It would improve farm income and really help provide long-term market stability for corn growers.
Smith: She said there’s a straightforward path to make this possibility a reality.
Parum: So right now, we rely on the EPA to give short-term waivers to let us sell it in the summers. What we really need is a congressional fix to get year-round E15 that's not relying on those emergency waivers. This will allow industries and producers to have some stability and know that they’ll be able to blend E15 ethanol year-round.
Smith: Learn more on the Market Intel page at fb.org. Chad Smith, Washington.
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