As a farmer, I am calling on the Trump Administration to stand on its promise to support a strong Renewable Fuels Standard (RFS). The RFS is critical for rural communities across this country, and especially for farmers like myself. There is a pending proposal being floated within the White House to cap the price of Renewable Identification Numbers (RINs). RINs are the market mechanism that drives biofuels blending. Any cap or other manipulation of the Renewable Identification Numbers (RINs) would not only cripple the Renewable Fuel Standard (RFS), but also pull corn prices down with it. The Trump Administration needs to hear from Iowa farmers!
The research shows that a price cap or waiver credit for RINs would be devastating to farmers, especially at a time when net farm income is projected to be at its lowest level in more than a decade. Iowa State University estimates the price of corn will drop 25 cents per bushel because of a RIN cap/waiver. This will put prices well below the breakeven point and threaten the livelihood of my farm.
There is no way to cut, cap, or eliminate RINs without cutting, capping, or eliminating gallons of homegrown biofuels. Cutting biofuels means less demand and lower prices for the corn I grow on my farm. It is simple - a RIN cap/waiver = lower prices for farmers.
We should be looking at blending MORE clean-burning fuels, not less. The first step would be removing the regulatory barriers that currently prevent year-round sale of E15 and higher blends. A true win-win would be lifting the summertime restrictions on the sales of E15. However, even summer expansion for E15 would be fruitless if coupled with a RIN cap/waiver.
Iowa farmers need to stand up for their industry and ask the Trump Administration to remember the promise made to farmers, to support the biofuels industries that have kept communities like mine in rural America alive and thriving!