Biofuels Industry Needs CCC Assistance

April 13, 2020

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by P. Scott Schearer (Natinal Hog Farmer/Informa Business Media ) Legislative Watch: Biofuels feeling COVID-19 impact; CO2 shortage hits food industry; more loan flexibility needed; expanding beef pricing inquiry; USMCA moving forward. -- ... A bipartisan group of Senators is asking USDA to allocate additional Commodity Credit Corp. funds to the renewable fuels industry.

In a letter to Secretary of Agriculture Sonny Perdue, the Senators say, "We are concerned for the many farmers and producers who will bear the impact of this decrease in consumption, further damaging an already hurting rural economy and resulting in the closing of production facilities that employ many people in rural communities in our home states.

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CO₂ shortages impact food and beverage industries
A number of agriculture, food and beverage industries are concerned that with the reduction in the production of ethanol it will significantly affect the availability and cost of carbon dioxide which is critical for their plants. They are asking for temporary federal assistance for CO₂ producers to ensure availability for their industries. It is used for processing, packaging, preservation and shipping of many foods and beverages.

In a letter to Vice President Mike Pence, the industries say, "We believe that temporary, emergency federal assistance is necessary to prevent shortages in CO₂ by providing federal incentives to industrial manufacturers to put manufacturing plants that result in CO₂ production back into service, especially those sites that are capture-ready, i.e. that have the ability to capture, liquefy and store usable CO₂. If federal action is not swift, a slowdown in food and beverage manufacturing due to a shortage in CO₂ will ultimately lead to shortages of needed goods."

Those signing the letter were the National Pork Producers Council, National Cattlemen's Beef Association, National Turkey Federation, North American Meat Institute, Beer Institute, Brewers Association, Compressed Gas Association Inc. and Renewable Fuels Association.

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The Senators suggest deadline extensions, loan payment deferrals, payment forbearance and suspension of foreclosure actions during the duration of the coronavirus pandemic and economic recovery.

The letter was spearheaded by Sens. Amy Klobuchar (D-MN) and John Hoeven (R-ND). READ MORE

Rural America needs to hold President Trump to his promise (Des Moines Register)

Letter: State of ag (The Courier)

LETTER: Rough times for Wisconsin farmers and ethanol producers (WiscNews)

How COVID-19 Is Impacting The Ethanol And Corn Producers (Forbes)

Will Farmers Social Distance Themselves From corn? (AgWeb)

COVID-19 impacts ethanol demands (Grand Island Independent)

High Yields, Drop In Ethanol Demand Due To COVID-19 Could Hurt Corn Producers (Indiana Public Media)

Trump Vows to ‘Expedite Help’ for Beleaguered U.S. Farmers (MSN/Bloomberg)

Senators Pen Letter to USDA Seeking Biofuel Industry Relief (NGT News)